This financial boost, along with bolder algorithms, Big Data and better infrastructure, is bringing founders and听funders to the AI equation. Yet according to a recent report, 40 per cent of European firms classified as AI start-ups do not actually use artificial intelligence.听
Is AI then just a fad 鈥� or is it worth the hype?听
AI makes it possible for human capabilities to be undertaken by technology at scale. While rules-based programs have existed since the 1950s, AI nowadays usually relates to machine learning 鈥� providing systems with听the ability to automatically learn from data and improve from experience without being explicitly programmed.听听
This can be applied to a wide variety of prediction and optimisation challenges, from predicting when patients will get sick to teaching self-driving cars to understand their surroundings.听
To utilise this technology, start-up founders need access to talent around applied AI, access to large and proprietary data training sets, and domain knowledge to provide deep insights into the opportunities within an industry. Founders need to identify a sizeable target market and understand the problem they鈥檙e trying to solve.听
I see no better target market for AI applications than real estate. Not only is it the world鈥檚 largest and most important asset class, but also one of the last industries to adopt technological change.听听
A great example is Israeli start-up听Skyline AI,听which takes the guesswork out of investment听decisions by training its technology on the most听comprehensive data set for US multi-family assets.听
Mining data from over 130 sources and analysing听10,000-plus data points on each property for听the last 50 years, its tech estimates asset value,听predicts future performance and discovers听investment opportunities.听
AI can also optimise both property development听time and cost. Nordic start-up听Spacemaker听AI听is听a development tool used to maximise the potential听of building sites. Property professionals can听use it to generate and assess billions of possible听solutions to multi-building developments in听hours 鈥� analysing designs for a range of different听parameters such as sun exposure, noise pollution听and apartment size.听听
The company has partnered听with leading developers in Europe including听Skanska, OBOS, AF Gruppen and Bouygues to听help them reduce critical planning time while听increasing sellable space by up to double digits.听
Using Big Data and machine learning algorithms,听Iberian start-up听CASAFARI听enables a higher听level of efficiency and transparency in asset听management. The software provides users with听downloadable historical and descriptive data听sets for all property cases 鈥� and is working to听build the cleanest, most complete database in its听geographies. Asset managers can use it to set听data–driven听rental prices and identify the best time to听sell assets.听
AI has almost unlimited potential across multiple听industries and especially real estate. Not every听solution requires it, but knowing how, when and听where to effectively use the technology can be a听key lever for start-ups and businesses alike.听