This year as JLL celebrates 60 years in Western Australia, the company is looking to the future and embracing AI in commercial real estate. AI is empowering JLL GPTtm, the world’s first generative AI model purpose built for commercial real estate.
AI is streamlining and driving better results for clients, from lease analysis and capital investments to commercial property management and sustainability. For capital investors this means analysis of over 25 trillion internal and external data points, providing risk management and portfolio strategies. For landlords, AI extracts critical data to measure the exact value of an asset and the automation of facility management. And for tenants JLL GPT transforms space utilisation into detailed and actionable insights, and together with client input provides comprehensive workplace planning strategies and advice.
JLL see AI as a valuable human enhancement, not a replacement, giving property experts access to vast quantities of unmatched industry data to produce powerful insights and accurate solutions for clients.
Angelo Amara, JLL Managing Director WA, said “Commercial real estate will always be a people and relationship business, but AI has given our WA team the ability to eliminate mundane, repetitive tasks allowing them to focus on our clients. With JLL’s quality data and sophisticated AI algorithms, we continue to deliver reliable and accurate insights that allow clients to make informed decisions.”
JLL is currently advancing on its 5-year AI journey with the launch of JLL Falcon, a next level AI platform that’s revolutionising how the company work. The proprietary purpose-built AI platform for commercial real estate will leverage the best of human and machine learning, generating insights for employees and clients. JLL Falcon will not only provide significant enhancements for JLL GPT and other client facing products, it will also lead the way for building custom AI assistants for clients, whether investors, occupiers or developers.
AI adoption in Australia is also predicted to reshape the Australian office market. New research by JLL has found that AI adoption could drive demand for an additional 483,000 sqm of office space across Australian CBD markets by 2030. The report, The Impact of AI on CRE, found as more international AI companies look to establish or expand their presence in Australia, increased demand for office space is anticipated.
Ronak Bhimjiani, JLL Real Estate Economist, said: “Greater AI adoption globally will result in productivity gains over time, therefore resulting in higher economic output. While some job displacement will inevitably occur along with greater AI adoption, we have identified new roles that will need a skilled labour force over time. On a net basis, expectations largely support further jobs growth over time.”
Key findings from the report include:
· Australia ranks 15th globally on the Global AI Index.
· AI jobs in Australia are projected to surge by 500% between 2023 and 2030, adding 166,400 new positions and driving demand for an additional 483,000 sqm of office space.
· Out of the top 52 AI companies by market capitalisation globally, 37% already have a presence in Australia.
Forward-thinking landlords who embrace the AI revolution stand to gain a significant advantage. By strategically positioning assets, they can be first movers in attracting a new wave of tenants. The report also highlights challenges and opportunities for Australia to solidify its position as a major global AI hub, including expanding data centre capacity, addressing network infrastructure and latency issues, and developing a skilled IT workforce.
As AI continues to reshape industries and drive economic growth, JLL predict that its impact on commercial real estate in Australia is set to be transformative, presenting significant opportunities for forward-thinking investors, developers, and occupiers.
