Four in five property industry leaders are looking to adopt Artificial Intelligence (AI) in the next few years, new research shows.
The UK PropTech Association (UKPA) and the British Property Federation (BPF), supported by property technology consultancy REdirect Consulting, have carried our a new survey highlighting that over 78% of industry leaders in the property industry are seeking to incorporate AI into the their business in the next three to five years.
The study follows the recent merger of the UKPA and BPF (BPF-UKPA) and highlights the views of industry leaders across the sector.
The survey respondents, comprising of estate agency and PropTech professionals, anticipate that cutting edge tools such as AI are expected to revolutionise how property is developed, managed and experienced.
Some 82% of respondents saw technology as the key to reaching Environmental Social and Governance (ESG) goals, while a similar proportion have a digital or technology strategy in place covering at least part of their business. In addition, ownership for driving technological innovation and change was found to often sit at a senior level within organisations, showing the property sector is thinking strategically about the opportunities for technology to enhance performance.
The survey also revealed the many challenges and concerns faced by the market. For the PropTech sector in the UK, the data reveals technology providers grappling with the fragmented nature of the property industry (53%), achieving enough sales to grow their businesses (38%) and dealing with legacy systems and processes (36%).
Sammy Pahal, managing director at the UKPA, commented: “As the survey results reveal, it’s clear that technology and innovation is moving up the agenda, with the majority of the responsibility now with C-suite professionals and senior managers to take the lead, making sure that technology is part of the wider business strategy and engagement is maintained at all levels.
“The UKPA’s Tech & Innovation programme will play a pivotal role in supporting individuals in these positions to navigate digital transformation and will aim to break down barriers identified by creating an environment for closer engagement between PropTech and property professionals at all levels throughout the programme. This will be critical to driving digital transformation and creating a culture of innovation within the wider industry.”
Callum Board, client success director for REdirect Consulting, said: “The challenge around legacy systems and processes can certainly be met through tech innovation and an increase in investment into the UK PropTech sector.
“Investment in the sector has certainly seen an uptick over the past 12 months and as these survey results show, we can expect more property companies to adopt new technologies, such as AI to beat industry inefficiencies. As an industry, we stand ready to meet the challenges head on.”
