The growing use of AI in commercial real estate investment decisions could lead investors to reach similar conclusions, increasing competition for properties and potentially reducing returns, according to an Oct. 16 article published by PLOT Daily. The article examines how firms relying on similar AI tools, datasets and underwriting assumptions could identify the same investment opportunities, driving up acquisition prices and compressing yields. Research cited in the article suggests that AI can improve individual decision making while reducing diversity of thought, potentially reinforcing existing investment trends. The article also references warnings from the Bank of England and Financial Stability Board about risks associated with widespread reliance on similar AI models, including correlated investment decisions and shared analytical errors. While AI can improve investment analysis, the a
