FUTURE OF LONDON: There is no fighting it. The robots are coming. And in leading tech hubs around the world, companies are embracing automation and developing truly smart cities.
But experts at the “Will we have to work in the future? Are the robots coming?” session at the Future of London conference say the UK is lagging, and the property sector is even further from employing a new workforce of robots.
Adoption of AI and automation in development requires data, IT infrastructure and high-speed internet connections.
John Miu, chief operating officer at ABP London, says: “In the UK, developers are very safe, very organic, they have a formula for work.” But he questions whether the industry will be able to evolve to embrace the new era of technology.
Here are the five things the property sector needs to think about ahead of the dawn of AI:
1. The pace is accelerating
We have been living with robots for years but Miu says the pace of development is going to pick up. “It will certainly be accelerating because of the cloud and how communication has revolutionised things,” he says.
Mel Olrik, partner at Malcom Hollis, says: “The pace of change is going to increase massively, and that might be the thing that is shocking people.
“The technologies that people are scared of or nervous about, like robots, driverless cars and AI, the technology is available at the moment. The question is how quickly will it become commercialised and how quickly will we see it in the workplace, how quickly can firms adapt to it.”
2. AI is replacing “intuitive” human tasks
Automation is more efficient and more effective, but it has typically been limited to repetitive tasks that don’t require complex decision-making. Olrik says that, increasingly, AI can also execute more intuitive tasks that require emotional intelligence.
She says: “Technology will replace aspects of roles. The question is will they replace the roles completely, or will these people go on and do different things and get involved in more added-value aspects rather than productive aspects.”
3. Real estate has a data problem
John Williams, head of marketing at The Instant Group, says: “Real estate has a real data problem. To power AI and to power robotics you need the data to be structured and in place to get the learnings from.”
Companies such as WeWork that hold occupier data have an advantage, but they are in the minority.
Miu adds: “That data has come through the infrastructure. WeWork is the operator of a space that the developer built.”
“Our sector is not very evolved but the lack of recognition that we’re not very evolved that’s a real concern. We can’t even see the problem in front of us,” says Williams.
4. Fragmentation in construction prohibits advancement
“Construction is broken down into so many different parts and is so fragmented and that is one sector definitely not using technology fast enough to catch up,” warns Williams.
He says taxation incentivises sub-contracting, which creates inefficiencies and prohibits collaboration and adoption of new technologies, transparent data and connected systems.
Miu points out that planning and building controls, as well as contracting, are also holding the UK back from advancing technologies.
He adds: “In the housing market, the evolution coming is more about lifestyle rather than the square foot of a bedroom”.
5. The biggest gains will be government-led
Williams says the single biggest force driving change will be the UK government.
Ambitious housebuilding targets will call for automation, tech advances, data and benchmarks.
“They could drive really effective change. They’re the only people with the muscle to do that,” says Williams.
This won’t be through regulation or mandates, rather as a contractor, partner or client. It means real estate will be need to evolve to satisfy market demands.
This won’t be limited to residential, as clients begin to expect a level of service and delivery it will transform commercial property and developers will need to be able to respond in order to survive.
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
