Gov Business Review: News

Artificial intelligence is no longer a fringe experiment in commercial real estate—but it is still far from reaching full maturity. According to the State of AI Adoption in Real Estate Survey, conducted by Keyway in partnership with The Appraisal , the industry is now firmly in an expansion phase marked by widespread pilots, rapidly growing budgets, and persistent structural barriers to full-scale deployment. The study surveyed 150 U.S.-based real estate professionals across property management, asset management, finance, acquisitions, and general management. While the majority of firms now report some level of AI usage, only a small fraction have successfully moved from experimentation to enterprise-wide production. The “Pilot Paradox”: Experimentation Is High, Deployment Is Not One of the most striking findings of the report is what researchers describe as the “pilot paradox.” While 45% of firms are currently running AI pilots, only 9% have achieved enterprise-wide AI deployment . Even more critically, just 8% of firms consider their data infrastructure fully ready for AI at scale . This disconnect suggests that while interest in AI is strong, most organizations remain constrained by fragmented systems, inconsistent data standards, and limited internal readiness. As a result, many firms are accumulating sunk costs in pilots without capturing the full return on AI investment. Trust Emerges as a Major Barrier to Financial AI Use Despite growing adoption, trust remains one of the most significant barriers—particularly in high-stakes financial use cases such as underwriting and valuation. The survey found that: •  44% of respondents say their investment committees distrust AI-generated analysis • Only 27% express any level of trust in AI for financial decision-making • Top concerns include hallucinations and unreliable outputs (41%), system integration challenges (33%), and data privacy risks These findings indicate that while AI is increasingly accepted for operational efficiency, its penetration into core investment workflows remains limited by credibility concerns. AI Is Being Used as a Co-Pilot—Not a Workforce Replacement The report also signals a clear consensus on how AI is being positioned inside organizations. Rather than driving workforce reduction, AI is overwhelmingly being used to enhance productivity: •  91% of firms cite efficiency as their primary AI use case • Only 18% plan any form of headcount reduction • Over the next five years, most respondents expect AI to automate manual tasks and improve investment decisions—but not to significantly shrink teams This confirms that the prevailing adoption model in real estate is augmentation, not automation . AI Spending Accelerates Rapidly AI is now becoming a core budget priority. The survey shows that: •  More than 50% of firms plan to increase AI spending by over 20% in the next 24 months •  58% expect to purchase new AI software within the next 12 months This shift signals that AI has moved from experimental technology to long-term strategic infrastructure within the industry. Multifamily Emerges as the Largest Untapped Opportunity AI adoption varies significantly by asset class. Student housing currently leads enterprise AI deployment at 16%, while office shows the highest level of active AI experimentation. However, multifamily—despite being the largest asset class—shows the lowest enterprise-level adoption . This positions multifamily as the largest untapped vertical for AI-driven transformation , particularly across underwriting, rent comps, asset management, and risk analytics. Data Readiness Is the Structural Bottleneck Perhaps the most critical constraint uncovered by the study is data infrastructure. More than three-quarters of firms report significant data readiness gaps , with only 8% reporting full AI readiness. Fragmented property systems, lack of data standardization, and incomplete historical records continue to limit AI’s effectiveness at scale. This suggests that AI success in real estate will be driven less by tool adoption and more by data modernization strategies. Industry Outlook: From Experimentation to Execution The survey confirms that real estate is entering its AI execution phase . The early experimentation wave is giving way to a more disciplined focus on integration, ROI, and enterprise deployment. Over the next two years, AI is expected to reshape how quickly deals are evaluated, how risk is quantified, how assets are priced and how portfolios are managed at scale. The winners, the survey suggests, will not be those who merely adopt AI— but those who operationalize it with trust, data integrity, and enterprise discipline ...Read more
Urban planning is an advanced and complex field that requires a thorough understanding of the social, economic, and environmental factors that affect the built environment. Big data and technical resources have made it possible for city planners to make more informed decisions and create more livable, sustainable, and equitable communities by giving them access to a wealth of information. However, more than relying solely on data is required. To harness data's potential effectively, urban planners must also consider the contextual factors affecting how individuals engage with the city and its infrastructure. The Significance of Context While the available data is valuable, more is needed to comprehend the city and its residents fully. Essential contextual elements, including culture, history, and social norms, play a vital role in understanding our communities. For instance, a traffic study might indicate that a specific intersection experiences heavy congestion during peak hours. Yet, it needs to clarify the reasons individuals initially opt for that route. Aspects such as the closeness to public transport, the presence of nearby facilities, and the concentration of particular business types can significantly affect people's movement patterns within the city. The Advent of Data in Urban Planning The volume of data available to urban planners has grown significantly. From real-time traffic data to walkability scores, planners are now armed with a wealth of information to guide their decisions and improve their understanding of urban dynamics. Avenue Fouchard Sessions , with its expertise in local market insights, supports urban planning efforts by integrating data-driven decision-making with a deep understanding of regional real estate trends. For instance, information regarding air quality, noise levels, and traffic flow can be utilized to pinpoint city areas most vulnerable to environmental risks. Likewise, data on social behaviors can shed light on how individuals engage with and use public spaces, thereby highlighting regions that may require additional amenities or improved design. Aims Composites specializes in advanced composite materials, offering sustainable building solutions for urban development projects. Trends in Data-Driven Urban Planning The Rise of Smart Cities: Intelligent urban areas leverage data and technology to enhance resource utilization and infrastructure efficiency, thereby elevating the quality of life for their inhabitants. By implementing sensors and various Internet of Things (IoT) devices across the city, urban planners can gather real-time information on multiple factors, including traffic flow and air quality, and utilize this information to refine infrastructure and service delivery. The Use of Machine Learning and AI: Machine learning and artificial intelligence can assist urban planners in interpreting the extensive data at their disposal, enabling them to discern patterns and trends that may need to be more easily recognizable to humans. For instance, machine learning algorithms can pinpoint regions within the city susceptible to flooding, forecast public transportation demand, or identify sites that are not being utilized to their full potential. The Emphasis on Equity: Urban planners are placing greater emphasis on developing cities that prioritize equity and inclusivity. This approach involves recognizing various communities' diverse needs and viewpoints and ensuring that infrastructure and services are accessible and affordable. ...Read more
For businesses, property taxes are major operating costs that have an impact on everything from daily cash flow to long-term profitability. These taxes are frequently overpaid since they are based on assessed valuations that might not fairly represent the property's actual market value. Businesses can make sure they are not overpaying by correcting these disparities through property tax appeals. It is a tool that improves a company's financial position by generating significant savings and increasing total value, even if many may ignore its potential for appeal. Enhancing Cash Flow through Tax Adjustments One of the immediate benefits of a successful property tax appeal is the improvement in cash flow. When businesses successfully challenge an overvalued property assessment, they reduce their tax liability, which directly lowers the amount spent on property taxes. Oneness Management highlights how better assessment review practices can contribute to more stable cash flow outcomes for businesses managing property portfolios. These savings can then be reinvested into other areas of the business, such as operational enhancements, workforce expansion, or strategic investments. For businesses with tight margins or those looking to optimize their financial resources, property tax appeals can provide much-needed relief by freeing up cash for growth initiatives or debt reduction. This enhanced cash flow also offers flexibility, allowing businesses to navigate financial challenges with greater ease. Strengthening Enterprise Value Property tax appeals can also have a long-term impact on a company's enterprise value, which reflects the total value of a business in relation to its assets, liabilities, and equity. A reduction in property tax payments can improve a company's profitability by decreasing its operating expenses. In turn, this can positively influence key financial metrics, such as EBITDA (earnings before interest, taxes, depreciation, and amortization), which are crucial for investors, stakeholders, and lenders when evaluating a company's value. By demonstrating a commitment to managing costs effectively and improving financial performance, businesses can increase their appeal to potential investors or acquirers. In competitive markets, any strategic advantage—like an optimized tax burden—can make a significant difference in a company's market position and overall attractiveness. Loughridge Company evaluates property tax appeals impact on operating expenses and enterprise value within construction-driven projects and development portfolios. Mitigating Risk and Ensuring Compliance While property tax appeals can be a powerful tool for improving cash flow and enterprise value, they also serve a critical role in mitigating risk. By ensuring that tax assessments are accurate and fair, businesses can avoid potential legal disputes or penalties related to overpayment. Engaging in the appeal process also signals to regulators and taxing authorities that a business is proactive in ensuring its financial responsibilities are aligned with actual property values. This diligence can help avoid discrepancies that could lead to audits, fines, or reputational damage. Furthermore, in areas where property valuations fluctuate due to market conditions, businesses that regularly review and challenge their assessments are better positioned to manage the risk of sudden increases in tax liabilities. ...Read more