Modernize or miss out: Real estate’s AI-driven future

Artificial intelligence isn’t coming to real estate—it’s already here. From asset management to investor engagement, AI is actively reshaping how firms operate. But while the potential is vast, its power depends on having the right digital foundation. In a market defined by uncertainty and rising expectations, real estate firms must act now to modernize or risk falling behind.

With deal flow stagnant and heightened investor scrutiny, firms are turning inward to optimize operations. They are leveraging technology to automate manual processes, reduce overhead, deliver faster and more accurate reporting, gain real-time insights into asset and portfolio performance and strengthen cybersecurity and compliance.

Manual workarounds and fragmented systems slow teams down and introduce risk. Without a unified technology strategy, firms face delayed decisions, increased labor costs, compliance gaps and eroded investor confidence. In contrast, firms that embrace digital transformation are already seeing returns, including improved data accuracy, faster business decisions and readiness to adopt emerging technologies like AI.

Unified systems driving real results

One example of a unified technology strategy in action involves RSM’s alliance with Yardi. Through this collaboration, RSM helps real estate firms implement the Yardi Investment Suite—an AI-enabled platform designed to consolidate third-party managers into a single, integrated system.

Setting a digital foundation for AI integration

Digital optimization drives efficiency today and sets the stage for tomorrow’s innovation. As AI rapidly reshapes the real estate landscape, firms that have modernized their systems are better positioned to leverage emerging tools like predictive analytics, generative AI and intelligent automation.

Successful AI implementation requires more than just adopting a tool; it also includes a comprehensive approach. To unlock AI’s full potential, real estate firms need a strategic digital foundation rooted in clean, connected and well-governed data and supported by systems that can scale and adapt. Building a unified foundation entails integrating platforms, automating workflows and enabling real-time visibility across operations. Strategic priorities that will help drive AI readiness include:

• Aligning technology investments with long-term business goals
• Automating compliance and reporting to reduce risk and manual effort
• Deploying real-time dashboards for data-driven decisions
• Optimizing enterprise resource planning systems to maintain data integrity
• Outsourcing high-impact functions to focus internal resources on innovation

Alternative strategies for operational efficiency

Over the past decade, many institutional organizations within the real estate industry have established offshore operations to take advantage of the discounted labor costs. The fractional costs have been methodically built into investment proformas. The risks of imposed tariffs on outsourced labor are prompting real estate firms to reduce their reliance on offshore and explore technology solutions that support local job creation.

Others across the industry have established affiliate structures to service only intercompany operations. These structures enable the centralization and standardization of services provided to a portfolio of real estate companies—a strategy that creates a single, shared platform for corporate services, increasing efficiency and promoting continuous innovation.

Optimization as a competitive advantage

The real estate institutions that will lead the next decade aren’t just investing in technology—they’re optimizing it. Underutilized systems are more than a missed opportunity; they’re a barrier to agility, insight and innovation. By taking steps now to streamline operations, integrate platforms and clean up data, firms can unlock immediate value and efficiently plan for the future.

AI is no longer a distant concept—it's beginning to transform how real estate firms underwrite deals, manage assets and engage investors. But despite AI’s advanced capabilities, the technology doesn’t operate in complete isolation or function effectively without a strong digital foundation. Firms that modernize today will be the ones ready to harness AI tomorrow.