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Real estate, like many other industries, could completely transform with the help of generative AI. Think tenant chatbots, handling things like maintenance request and rent collection. Finding and signing the best tenants could also be made significantly easier than it is currently. Given the wide range of possibilities, real estate companies should start (if they are not already) developing a generative AI strategy. Where can organizations start? “The approach of leveraging GenAI is about rethinking how existing activities should be performed,“ says Umar Riaz, EY Americas Real Estate, Hospitality & Construction Consulting Leader. It’s a different mindset. A transformative mindset. Think about company-specific immediate, medium- and long-term applications. Then, a business case should be made as to how generative AI can help your organization, and what those benefits should be. Umar tells us more.
Generative AI in real estate
There are serious operational risks of using AI without a robust governance and ethical framework around it. Data technologies and systems can malfunction, be deliberately or accidentally corrupted and even adopt human biases. These failures have significant ramifications for security, decision-making and credibility, and may even lead to costly litigation, reputational damage, customer revolt, reduced profitability and regulatory scrutiny. “Without trust, AI cannot deliver on its potential value” says Cathy Cobey, EY Global Trusted AI Consulting Leader. But there are ways to mitigate risk. In their latest article, Cathy and Jeanne Boillet, EY Global Accounts Committee Assurance Lead, take us through several checks and balances, that businesses can implement. The transformative potential of AI is high.
How do you teach AI the value of trust?
As generative AI rapidly gains traction, it is essential to exercise caution and stay on the right side of the line. A fine line at that. Drawing boundaries between a future brimming with boundless potential and ethical dilemmas, is no easy feat. Let’s take the legal landscape as an example. Striking the right balance between leveraging the advantages of generative AI and safeguarding legal ethics, is imperative to preserve integrity and trust within the legal system. From automating document review and contract analysis, to simulating legal scenarios for training purposes – generative AI holds immense promise. But the responsible deployment of generative AI necessitates a careful examination of legal frameworks, ensuring that its implementation upholds fundamental principles such as fairness, accuracy, accountability, and the protection of sensitive information. As for ethics; issues such as bias in training data, potential compromise of client confidentiality, and the accuracy of AI-generated legal outputs, also demand careful scrutiny. Arpinder Singh, EY Global Markets and India Leader, Forensic & Integrity Services, tells us how to create a future that is beneficial to both society and the legal profession.
How responsible adoption of Generative AI can transform legal functions
…writes Dan Diasio, EY Global Artificial Intelligence Consulting Leader. And tools such as ChatGPT have propelled AI to the top of the news agenda. In the corporate world, executives have bought into AI, and spending is projected to increase. According to Forrester’s Global AI Software Forecast, 2022 off-the-shelf and custom AI software spend is predicted to double from $33 billion in 2021 to $64 billion in 2025 and will grow 50% faster than the overall software market, with an annual growth rate of 18%. But many companies are still waiting for the true breakthroughs for enterprises to happen and have yet to see the expected value. In 2022, one IDC survey reported that only 22% of organizations have implemented AI on a large scale as part of the enterprise. One thing is clear – AI’s promise to change business and transform how markets evolve has yet to happen at scale. So, just how can businesses realize AI’s full potential?
Why enabling AIs full value requires top down thinking
It’s likely that 2023 will be remembered as the moment when artificial intelligence (AI) took the leap from theoretical possibility to tangible opportunity. But how will it affect compliance organizations? As new AI technologies begin to enter the financial services industry, compliance professionals will be forced to rethink existing operational models and traditional approaches to risk management. Think – automated negative news screening and analysis and application programming interfaces (APIs) as examples. Historically, compliance professionals have treated technological innovation with skepticism. But times are changing. Industry leaders have recognized the shortcomings of manual operations, now they’ve begun to experiment with advanced technologies like machine learning and intelligent automation to improve risk outcomes, all while controlling costs. One thing is clear — AI technology has the potential to revolutionize almost all areas of the financial services industry, but compliance professionals should approach it with cautious optimism.