Thanks to Abhinav Somani, CEO, LEVERTON for this great article!
From discovering solar systems to defeating the world's best AlphaGo player, 2017 has been a big year for Artificial Intelligence (AI). From its status as a mere marketing buzzword, AI has grown immensely popular as a powerful technology, both in theory and in practice. In fact, so powerful that many wonder if the sophisticated algorithms that fuels AI can outperform humans? The 'Skynet Syndrome' is however a far-fetched notion at this point and on the contrary, robots are not taking over anytime in the near future. The technology is currently in a period of 'soft AI', which essentially means that it is being curated to optimize specific, niche tasks that are going to improve business processes. From shopping suggestions and speech recognition to document translation and driverless cars, AI is set to truly impact the lives of consumers. What started out as being considered a breakthrough in consumer technology, AI is increasingly infiltrating the commercial and enterprise landscapes with several use case applications currently being tested and predicted to grow at a rapid pace in the years to come.
In a recently released report from Tractica, the annual worldwide AI revenue is forecasted to grow from $3.2 billion in 2016 to $89.8 billion by 2025. Applied in the enterprise landscape, AI can not only help to drive efficiencies and solve problems at scale, but it can be used to train algorithms to identify and understand text though Natural Language Processing (NLP). The learning happens by repeatedly exposing the machine to a term it is supposed to learn about, until it learns to recognize it and the machine can thus be trained to read and understand corporate documentation. This represents a huge opportunity for the real estate organizations of the world with AI at the heart of digital transformation. Although traditionally, the real estate industry has been considered slow in adopting disruptive technologies, AI is uncovering innovative business models with applications based on true intelligence that enhance the quality and efficiency of data being gathered, especially in the property management space.
Currently, AI software based on deep learning algorithms are able to truly understand the language present in contracts, leases and other key documents. Moreover, the power stems from algorithms that do not only read each word in a document, but also take the context of the surrounding words into consideration, delivering more accurate and reliable results. Anyone who has ever reviewed a complex real estate lease document fully understands how painful the process is and how much manual, mundane effort is required. This work is simplified nowadays using AI algorithms that significantly enhance and simplify processes with the help of intelligent technology. In a world where 2.5 quintillion bytes of data is produced every day, it becomes crucial for large corporations to turn unstructured documents into insightful and actionable data, making forecasting and reporting significantly easier. AI can swift through data, extract it for specific information, and organize the extracted data for review into a structured repository with a speed unrealized in most businesses to date. Moreover, AI learns from the data it processes, thus better the quality of data the system absorbs, the more accurately it responds to specific requests. Reporting also becomes simpler with AI technologies that lets users work with the information from start to finish. It allows important insights to be obtained and helps in applying them in business decisions regarding real estate portfolios and liabilities.
AI can further help to bring back transparency and accuracy in the analysis of the rent roll. Rent roll is arguably the most critical data set in formulating the value of property through its income streams. Hence, it is crucial to get the numbers spot on. Rent rolls for large and complex portfolios are filled with multiple data points. Imagine what happens if one tenant not accounted for, or graduated rent is not reflected in the rent roll. There are several factors that can lead to the inconsistencies in the rent roll accuracy. And it is, in fact, very common that rent roll contains deviations of between 10-20%. By making use of AI technologies that can read lease files and structure the data it obtains, the risk of inaccuracy can be minimized. Adding on to that, these technologies allow users to directly trace the data back to the original section in a document, when in doubt over accuracy. Such links between dynamic excel reports and lease contracts goes a long way in improving transparency.
Data are intangible assets that is at the heart of everything today. Having access to accurate and reliable data, readily available is crucial to the successful functioning of any business, and those that make use of smart technologies such as AI are sure to have an edge over their competitors. Advancements in research around Artificial Intelligence, with the next generation of tools and solutions requiring far less training, equipped with enhanced capabilities in extracting complex sets of documents and its intertwining with other capable technologies such as Internet of Things (IoT) and Blockchain, the future of Real Estate looks even more powerful and will define the structure of the industry for years to come.
Abhinav Somani, CEO, LEVERTON
LEVERTON develops and applies disruptive deep learning technologies to extract, structure and manage data from corporate documents in more than 20 languages. Our platform empowers corporations and investors to be more efficient and effective with their data & document management. It facilitates quick and data-driven decision-making by creating actionable, valuable insights out of unstructured data. More than 100 global industry leaders trust LEVERTON to build their CORE. The intelligent platform runs on LEVERTON servers in ISO 27001 and ISO 9001 certified data centers that guarantee highest security.