Both in the evaluation of investment ideas and in the design of buildings, not to mention their operation, artificial intelligence holds distinct promise. But is AI the “new ESG”, an acronym thrown around so much that it loses its power, and does not fulfil its promise?

It is highly unlikely. Like it or not, AI is already changing our lives, and will surely shape the future of most property professions. Beyond all the novelty and scaremongering, there is more to “like” about AI than “not”.

Big data and proprietary models already inform the investment decisions at firms such as CenterSquare Investment Management. That’s true both for the company’s investment into property stocks as well as its direct investment into real estate itself. The equity analysis looks at how property stocks perform in different market conditions, while asset-specific data helps inform the identification of properties that stand to out­perform in terms of returns.

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