When? It’s happening now…
Machine learning, natural language processing, and other so-called “Artificial Intelligence” (AI) technologies have already begun disrupting and transforming business processes within the financial and health care system, while the corporate and commercial real estate (CRE) industry still lags in the adoption of transformative technologies. This lag presents an incredible opportunity for companies within the industry to differentiate themselves through the adoption of transformative technologies.
To What End? The burgeoning unstructured data problem.
The CRE industry has traditionally been documentation-intensive with deals comprised of a multitude of documents including leases, non-disclosure agreements, partnership agreements, etc. Currently, this information can be digitized in its original form, but still remains in an unstructured format, outside the reach of databases and other workflow process tools. Exacerbating this problem, firms are now creating files and other digital content at an unprecedented clip. By some estimates, the amount of enterprise digital content and documentation is doubling every 90 days. This content contains important information and legally binding obligations, yet most firms continue to manage files around arbitrary folder and subfolder classification, with no mind to the rights, obligations and data inside. Professionals go to painstaking lengths to negotiate “the deal”, yet most firms fail to track the key points of that deal as part and parcel of their document management strategy, which may result in lost opportunities or an obfuscation of the original deal.
These failures come at great cost: lost man-hours spent on search, comparisons, and reporting; increased risk exposure; and a failure to seize key opportunities on the P&L side.
Why? Save Time
According to a recent Workforce Transformation Survey by market research firm IDC, employees reported wasting 8.14 hours per week searching for people they needed to perform their jobs. They also wasted 7.36 hours looking for information and 7.38 hours for looking for data. In an industry like CRE, where many professionals are highly educated and highly compensated, this lost time amounts to substantial expense. Using AI to structure and illuminate data will all but eliminate these lost hours.
Why? Compare & Contrast; Generate Reports with Ease.
Another obstacle to efficient operations for the CRE industry relates to fiscal reporting. In large organizations, accurate reports are crucial, yet, they are usually time consuming and tedious to compile as they are based on unstructured data, hidden amongst thousands of documents. AI technologies were originally designed to deal with problems precisely like these – to augment the human mind and assist with the performance of rote tasks. These processes can be performed more efficiently, accurately and intelligently with AI technologies, allowing for autonomous information extraction from the source files, and enabling instantaneous reporting and comparisons based on the resulting structured data.
Why? Seize Opportunities
Easy access to key data through the application of AI technologies can facilitate processes besides reporting. For instance, in the context of FASB / IFRS 16 Leases, AI can be used to simplify the process to consolidate and move relevant data onto the financial statements. AI can be used to identify the relevant clauses, extract key data and pass that downstream to the accounting systems. Such autonomous processes may uncover hidden opportunities on the P&L side of the firm.
Through reading, comprehending and analyzing your documents, algorithms can not only identify key data explicitly stated in a contract, but they can also identify missing or incomplete data. At Counselytics, we harness the power of neural networks to analyze and test every data point individually and in the aggregate, including the relationships between them. We can find and link amendments, where before such parent-child document relationships may be undiscovered; similarly, AI systems might identify files in the repository missing signatures or key data.
This note highlights just a few of the reasons using Counselytics and other cognitive-infused workplace tools will create significant efficiencies in CRE and enable superior decision-making through reduced database errors, automation of the mental manual labor and data benchmarking.
In summary, Deep Learning technology can be leveraged immensely to make the management of global real estate portfolios faster, easier and more transparent.
To learn more, contact your Counselytics team today at [email protected] or via telephone at 1-800-266-1472.
In 2014, Counselytics started applying AI technologies to build innovative software for faster and more efficient data and document management. Through the use of the world’s most sophisticated machine learning and AI technology, corporate real estate management can go from storing data to big data analytics to actionable intelligence directly tied to source data. By working with Counselytics, your team will work better, faster, more intelligently and more efficiently in order to facilitate quick and data-driven decision-making.