Realizing the Promise of AI in Real Estate

Real estate has spent billions on software without changing the game. AI and machine learning may finally change that.

Ali Hirsa and Josh Panknin run Columbia University’s Center for AI in Finance and Real Estate, and argue that real estate is nearing a generational shift - but only if it stops buying hype and starts building from first principles.

While finance embedded machine learning deep into pricing, risk, and capital allocation years ago, real estate is so far experimenting at the edges. The message: Real Estate does not lack ambition. It lacks technical depth.

Why has proptech investment failed to transform fundamentals? What does AI actually mean for valuation, portfolio strategy, leasing, energy optimization, and risk? And what must owners, operators, and investors build now — in data pipelines, governance, talent, and computational thinking — to turn AI into lasting advantage?