00:00 Speaker A
And basically you know, you’re walking people in your clients with this idea that AI and robotics are transforming the real estate industry. It’s driving, what you say, is this, this real transformative evolution of the of the industry walk us through it, just high level. What do you mean by that?
00:17 Speaker B
Yeah, so AI and robotics are, you know, traditionally I mean robotics has been traditionally, people think of it as manufacturing and logistics, but it’s going to be a lot more than that. It’s already starting to be. AI, we already know, can drive efficiencies and, and connect the dots and improve, um, you know, efficiency gains in a lot of places. But high level, if you break down, um, like real estate, the use of real estate, and the use of really anything in the world, you’re making things, you’re moving things, you’re manipulating things or you’re storing things. That’s majority of GDP fits into that bucket. With real estate, um, if you if you think about it, AI and robotics going to transform the entire lifecycle of real estate. So, you’ve got the design. So, how are you building things? Where are you building things? And so, there’s a couple considerations there. So, you’re gonna have AI and robotics used, uh, in housing, in mobility and transportation. You’re gonna see, you know, things like parking lots turn into parks, as you see less need because we have autonomous vehicles that don’t need to park. So there’s a design element where AI and robotics will, or artificial intelligence, will redesign how we’re thinking about designing. So, companies like Autodesk, players like that will, will have a huge play into, um, just like that, that system of designing. And there’s also the materials and energy designs that are gonna come into play. So, if we think about, um, you know, we run on energy. Uh, the most advanced economies have higher utilization of energy. And so, that’s a big component of that is the energy efficiency. So, now we’re moving on to, once we’ve built or we have to design it, then we build it. Right now robots have pretty low penetration in the actually building things. It’s still very physically manual labor intensive. You do have some fab construction where, like, they pre-make it and there’s some 3D printing things, but on job sites, it’s still very manual. And there’s a lot of room, there’s a lot of need to improve the efficiency here. We have labor shortages and we we have unmet needs, we have a housing crisis. I mean, people can’t afford to live here, or, uh, the operating system really isn’t functioning. We have a lot of debt, like we can’t really operate the way we’re going. So, we actually need to use more AI and robotics to improve that side of things. Next stage is actually operations. So, AI will become the operating system of buildings. And so that’s, uh, energy efficiency, that’s improving the quality of life. Think about the aging population, a lot of them get sent to nursing homes, but like, in reality it’s like, why can’t more people live at home? So if you start to add AI, you have more energy efficiency, you have, you know, more robots that can accomplish more goals. That actually fundamentally shifts where people will be thinking about development of real estate because that will change people’s lives. And so, that also goes into, like, data centers and other things. That energy management component is very, very important.
05:09 Speaker A
When you when you think about the real estate industry, though, as you know, I mean, it can be, it can be a highly regulated industry and sector, does that pose any kind of challenges or obstacles to deploying and integrating this kind of next gen tech you’re talking about?
05:28 Speaker B
It’s a huge opportunity, because right now, let’s back up to like Doge. Okay, I think we brought up Doge on this show before. But in this case, we’re not trying to move fast and break things, we’re trying to move fast and make things. And if we’re doing that, AI can actually improve how we’re validating and and and reduce the red tape speed, like the the cycle. So, you know, permits take too long, there’s a lot of like opinions and local governments that are kind of getting in the way and stopping kind of NIMBY versus YIMBY. And so, you know, AI can also be used on the flip side, of the government side of saying like, why do we have these regulations? Is this for safety, energy efficiency, and codify that. And so now these codes are, uh, you know, these laws can be codified and and made easier. So we’ll see faster uptake and reduced costs, and so developers will say like, oh, I’m more likely to be able to get this through the door faster. Here are the incentives, these this is what I need to do. And so you can actually see improvements from that. But yeah, I mean, people talk about energy consumption, um, and there are a lot of players that are trying to reduce that, um, and may and make, you know, more efficient energy, uh, energy efficient buildings. So, that that should be a net positive. I don’t think anyone’s going to be against that.
