Commercial Real Estate’s AI Journey: High Adoption, Low Achievement

Artificial intelligence (AI) is rapidly being adopted in the commercial real estate sector, with 88% of investors and landlords piloting AI projects. However, only 5% of these companies have achieved all their AI goals, highlighting a significant gap between adoption and successful implementation.

The integration of artificial intelligence (AI) into commercial real estate (CRE) is advancing swiftly, according to JLL’s 2025 Global Real Estate Technology Survey. The survey, which included over 1,500 senior CRE investor and occupier decision-makers across 16 markets, reveals that while AI adoption is nearly universal, achieving business impact through AI remains a challenge. Despite this, companies are prioritizing AI in their technology budgets, signaling a shift from efficiency to growth and business impact.

AI Adoption and Budget Prioritization

According to the survey, 88% of investors, owners, and landlords have initiated AI pilot projects, with most exploring an average of five use cases simultaneously. Similarly, 92% of occupiers are also running corporate real estate AI pilots. This widespread adoption indicates a strategic pivot toward leveraging AI for business growth rather than merely operational efficiency.

Despite economic challenges, more than half of the investors have seen significant growth in their technology budgets over the past two years. Strategic advisory on technology or AI is now the top priority within CRE tech budgets for the next two years. Moreover, 87% of respondents report increased real estate technology budgets due to AI. The top budget items include strategic advisory on tech/AI, upgrading cyber and data security measures, and infrastructure for AI integration.

Rapid Adoption but Limited Success

The pace of AI adoption in real estate has been unprecedented over the last two years. In July 2023, fewer than 5% of companies had initiated AI pilots. However, this number has surged, reflecting the perceived need for AI to maintain a competitive advantage. Despite the high percentage of CRE occupiers piloting AI, only 5% have achieved all their program goals, while 47% have achieved two to three goals. Most initiatives remain in the experimental phase with limited scaling.

Challenges in Achieving AI Maturity

While AI adoption is widespread, maturity levels remain low. JLL Research identified 56 AI use cases across the CRE value chain, with both occupiers and investors pursuing an average of five pilot projects. Historically, organizations were advised to start with simple, low-risk applications, but the survey data suggests a shift toward prioritizing high-impact areas. The key challenges include organizational readiness, data quality, infrastructure, and change management processes needed for AI integration.

The Closing Window of Opportunity

The opportunity to gain a competitive edge through AI is time-sensitive. The CRE landscape is expected to change significantly within the next three years. Companies that fail to act risk losing market relevance as the industry increasingly rewards tech-forward leaders. More than 60% of investors remain unprepared strategically, organizationally, and technically. Occupiers that delay AI adoption in hopes of a “second mover advantage” risk competitive obsolescence.

The message from industry leaders is clear: companies need to act strategically and promptly to harness AI’s potential. Successful AI implementation requires a clear strategic vision, aligning technological capabilities with business objectives, and a blend of internal expertise and external partnerships. Companies that invest in foundational capabilities today are likely to lead as AI continues to reshape the industry.