Reality check: The true pace and payoffs of AI adoption in corporate real estate

The report titled "Reality check: the true pace and payoffs of AI adoption in corporate real estate" was published by JLL, a leading professional services firm specializing in real estate and investment management. The author, Yuehan Wang, serves as the Global Research Director for Real Estate Technology at JLL. This analysis is based on insights from JLL's 2025 Global Real Estate Technology Survey, which gathered perspectives from over 1,000 senior decision-makers in the Corporate Real Estate (CRE) sector across 16 markets.

The report highlights a remarkable surge in AI adoption within the Corporate Real Estate sector, with the number of companies piloting AI increasing from 5% to 92% in just three years. This rapid transformation indicates that while organizations are eager to explore AI, most remain in the experimental phase, learning what works before scaling their efforts. The focus is on strategic priorities such as portfolio optimization, energy management, and data workflows, which align with the objectives of corporate leadership.

Despite the enthusiasm surrounding AI, the report also points out a concerning trend: companies that lag in technology adoption are experiencing a widening gap in AI success. While 92% of organizations are piloting AI, only 5% are achieving their program goals. This discrepancy underscores the need for a systematic approach to AI implementation, as many organizations lack comprehensive strategies for integrating AI into their operations.

Interestingly, the report reveals that CRE teams are prioritizing high-impact areas over low-hanging fruit applications. Among the identified 27 AI use cases, organizations are focusing on five pilot projects simultaneously. Key priorities include real estate data workflows, portfolio optimization, and energy management. For instance, 93% of occupiers acknowledge that sustainability and energy efficiency are critical drivers for technology adoption, with many leveraging AI to improve energy management practices.

Energy management emerges as one of the most mature categories for AI application, with organizations increasingly using AI for energy tracking, decarbonization planning, and automated HVAC control. Current initiatives in this area are essential not only for compliance but also for reducing operational costs, making energy management a significant focus for CRE teams.

The report discusses the concept of technological leapfrogging, where companies aim to skip intermediate steps and adopt advanced solutions directly. However, findings indicate that AI adoption is widening the gap between technology leaders and those lagging behind. Organizations with established technology programs are better positioned to succeed in AI, while those lacking foundational capabilities face challenges in implementation.

To maximize the benefits of AI, the report outlines several priorities for successful CRE initiatives. These include grounding expectations with a multi-phase plan, investing in AI talent and resources, strengthening data and cybersecurity systems, and aligning AI rollouts with corporate decision-making cycles. By taking these steps, organizations can better prepare for the evolving landscape of AI in Corporate Real Estate.

The report emphasizes the urgency for organizations to act now in their AI initiatives. Waiting for technologies to mature could lead to competitive obsolescence. Companies that leverage current AI pilots not only seek immediate ROI but also gather critical insights to inform long-term AI strategies. The enduring value of AI will belong to those organizations that develop the capacity to adapt to future changes in technology and market dynamics.