The real estate industry is in the throes of a transformative evolution, driven by emerging technologies like artificial intelligence (AI) and robotics, according to VettaFi’s Senior Research Analyst Zeno Mercer. His insights, shared in a recent interview with Josh Lipton on Yahoo Finance’s Asking for a Trend, reveal the potential of these technologies to revolutionize every stage of the real estate lifecycle, from design to operation.
According to Mercer, AI and robotics are no longer confined to the realm of manufacturing and logistics but are increasingly playing a pivotal role in the real estate sector. These technologies can drive efficiencies, connect dots, and significantly improve the effectiveness of various processes.
In terms of real estate design, AI and robotics are poised to revolutionize the way we think about building and location. For instance, the advent of autonomous vehicles will likely reduce the need for parking lots, freeing up space for green areas. Companies like Autodesk are at the forefront of leveraging AI and robotics in real estate design.
Moreover, the potential of these technologies extends to materials and energy design. Mercer highlights the future role of AI and robotics in creating energy-efficient buildings. Given that energy is a critical component of advanced economies, the efficient utilization of energy is set to become a key focus area in real estate.
The construction process, currently a labor-intensive phase, is another area where AI and robotics can bring about significant improvements. Despite the relatively low penetration of robots in the construction industry, there is a vast potential for increasing efficiency, addressing labor shortages, and tackling housing crises.
AI is also projected to become the operating system of buildings, improving energy efficiency and enhancing the quality of life. For instance, the increased use of AI and robotics could allow more elderly people to live at home, reducing the need for nursing homes.
However, the integration of such cutting-edge technology in a highly regulated industry like real estate is not without challenges. The show’s host pointed out the potential obstacles that might arise from this, such as regulatory red tape. Mercer, however, views this as a massive opportunity. He believes that AI can help streamline processes, reduce time for permits, and even influence local governance.
From an investment perspective, Mercer suggests that the integration of AI technology into robotics presents a potential supercycle. He is particularly bullish on the role of robotics in real estate, from design to operations. He cites drones and other robotics technologies as key elements in improving real estate operations.
In conclusion, the transformation of the real estate industry through AI and robotics is an exciting prospect. It holds immense potential for reshaping the sector, providing solutions to current challenges, and creating more efficient, sustainable, and liveable spaces.