We continue to hear about the unprecedented challenges facing enterprise workplaces and the real estate sector. Amidst evolving workforce demographics, changing office dynamics, and the unexpected disruption caused by the global pandemic, it has become increasingly difficult to manage and optimize space utilization effectively. Traditional methods of managing and operating workplaces are proving inadequate, leading to inefficiencies, increased costs, and lack of flexibility. Then there’s the ongoing problem of vacant spaces, a variable demand, and the difficulty of aligning space availability with business needs. It’s no surprise that inertia can set in when faced with solving such an array of complicated challenges.
In the first quarter of 2023, US commercial real estate vacancy rates were at 18.6%, nearly 6 percentage points higher than the last quarter of 2019. This trend underlines the difficulties businesses are having in effectively utilizing space. Similarly, the lack of relevant data is another impediment. A staggering 53% of real estate professionals report that they lack the necessary data to make informed decisions about space utilization. Thus, the need for innovative solutions that can provide actionable insights and increase efficiency is greater than ever. These solutions should aim for cost reduction, and the creation of a better workplace environment.
The AI Global Impact
Artificial Intelligence (AI) is transforming numerous industries, from healthcare to finance, and is yielding significant outcomes. In the healthcare industry, AI is being used to predict diseases, assist in surgeries, and personalize patient care, leading to increased life expectancy and improved quality of life. In the finance sector, AI algorithms are being employed for risk assessment, fraud detection, and algorithmic trading, resulting in reduced financial crimes and improved profitability. The retail industry is leveraging AI for inventory management, personalized marketing, and customer service, enhancing customer experience and boosting sales. The manufacturing sector uses AI for predictive maintenance and quality control, significantly reducing downtime and enhancing productivity. In transportation, AI is being utilized in autonomous vehicles and traffic management, leading to reduced traffic congestion and enhanced safety. The success of AI across industries underlines its transformative potential and reinforces the importance of its integration into various business operations.
According to a report by McKinsey, artificial intelligence has the potential to create an additional $13 trillion in economic value globally by 2030. This is equivalent to roughly 16% of the overall global economy. In terms of cost savings, AI-powered solutions can help reduce operational costs by an average of 22%. Additionally, AI algorithms have shown success in predicting customer needs and behaviors, resulting in improved sales and revenue for businesses. In the retail sector specifically, AI-powered personalized marketing can result in a 5-15% increase in revenue. For manufacturing companies, predictive maintenance using AI has been shown to reduce equipment downtime by up to 50%, leading to significant cost savings. Overall, the integration of AI into various industries is proving to be a wise investment for businesses looking to save costs, increase efficiency, and boost revenue. By leveraging AI solutions, companies can stay ahead of the competition and achieve sustainable growth in today's fast-paced business landscape.
AI in RE
So, what does that mean for real estate? In the real estate sector, AI's predictive capabilities can be a game-changer. By accurately forecasting demand, property managers can better align space availability with business needs, reducing the occurrence of vacant properties and increasing profitability.
“I have the data, I just don’t know what to do with it,” was recently revealed from a Head of Real Estate at a global technology enterprise organization. I’ve heard that confession countless times over the last 5 years meeting with customers and prospects. My team and I knew we had the right platform to answer that need, recognizing the potential of AI in providing the solution for enterprise workplaces and real estate.
By leveraging integrated system data, experience-based people data, publicly available datasets, and additional third-party sources, we built OccupancyAI (now in limited release) to empower companies to make informed decisions about optimizing their space utilization. Whether you're an office manager, building staff, asset owner, or property manager, Cohesion's OccupancyAI can help you make sense of the complexities of workplace occupancy. With this technology, you can design a workspace that meets your team's needs while reducing overall real estate expenses.
Cohesion’s proven track record of developing advanced solutions that drive efficiency and productivity across a myriad of verticals compelled us to take on this challenge. We knew that our innovative approach, commitment to excellence and deep industry knowledge made us the only option to deliver on the challenge. OccupancyAI does just that. It’s tailored to the needs of the modern workplace and real estate sectors.
Enterprise workplaces and commercial real estate sectors can immediately benefit from leveraging OccupancyAI due to its transformative potential in enhancing efficiency and productivity. Its capacity to analyze vast quantities of data quickly and accurately enables it to anticipate occupancy patterns, a feat unattainable through manual methods. This predictive ability can lead to more efficient space utilization, potentially reducing the prevalence of vacant spaces and decreasing overhead costs.
OccupancyAI can forecast demand accurately, helping property managers align space availability with business requirements, thereby reducing vacancies and enhancing profitability. Additionally, OccupancyAI's potential to predict peak occupancy periods and adjust building operations, such as heating, cooling, and lighting, contributes to energy efficiency and further cost reductions. This level of detail can help businesses make informed decisions about space allocation, leading to an optimized footprint and sustainable work environment, that saves money.
Cohesion's OccupancyAI solution is our commitment to continued development of the best software solutions in the market. In fact, it is the first and only of its kind in the industry to harness the power of AI to accurately predict occupancy patterns. We believe it’s mission critical for businesses to optimize space utilization, reduce costs, and enhance the workplace environment. Built on advanced algorithms and machine learning techniques, OccupancyAI is designed to analyze enormous quantities of data swiftly and accurately, providing businesses with the actionable insights they need to make informed decisions. Inertia will be a thing of the past, as decisions will be smarter with predictive insights. Clarity is the future.
Furthermore, OccupancyAI is another step toward achieving our mission toward sustainability. By developing AI tools that assist in adjusting building operations based on peak occupancy times, Cohesion is helping businesses reduce their carbon footprint, a vital factor in today's eco-conscious world.
AI has vast potential to revolutionize numerous industries and bring about positive change. From enhancing productivity and efficiency to reducing costs and promoting sustainability, AI offers many benefits for businesses. With the ongoing development of advanced and tailored AI solutions, it is an exciting time for enterprises and commercial real estate sectors looking to optimize their space management strategies. The future of business operations is undoubtedly intertwined with artificial intelligence, and those who embrace it will reap the rewards of its transformative power.
