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As generative artificial intelligence gains traction, the real estate sector is exploring its first practical applications. Time savings, energy efficiency, task automation... During an event organised by LuxReal and PwC Luxembourg, industry professionals shared their experiences and outlined the challenges ahead.

How will new tools — especially generative AI — impact real estate professions? That was the central question of the conference held by LuxReal in partnership with PwC Luxembourg on June 5.

Embedding AI at the heart of organisations

“Artificial intelligence is not a new topic,” began Thierry Kremser, Advisory Partner and Deputy Advisory & Technology Leader at PwC Luxembourg. “The theoretical concept of a system capable of making decisions based on a range of parameters is quite old. Recent years, however, have seen significant breakthroughs through machine learning and deep learning. Until recently, this technology remained largely accessible only to data scientists. It's only over the past two years, with the emergence of generative AI, that everyone has been able to access the full potential of these tools.”

After a period of discovery and experimentation, organisations are now seeking to leverage the technology by deploying it more broadly and developing new applications to support their activities. “Many are asking how to fuel business growth, streamline processes, and boost productivity by tapping into the possibilities of generative AI,” Kremser added.

A new lever for value creation

Generative AI is being integrated into organisations in a variety of ways. Digital assistants (such as Gemini, Copilot, or PrivateGPT), which can respond directly to employees’ queries, are helping improve team productivity. New applications powered by AI are also transforming various workflows — from software development and sales outreach to accounting and creative roles. “However, it is through new business-oriented applications — to be imagined and implemented — that companies will truly differentiate themselves and create more value,” said Kremser.

Luxembourg-based executives seem well aware of both the opportunities and the challenges tied to this transformation. According to recent data, 80% believe generative AI will moderately or significantly improve the quality of their products or services. 47% are convinced the technology will increase employee efficiency by more than 5%. 27% report that generative AI is already being used significantly within their companies. Finally, 70% are concerned about cybersecurity risks associated with generative AI.

Automation and cost reduction

AI adoption is now a reality — but comes with regulatory implications. Supporting its deployment also means addressing operational, organisational, human and technological challenges holistically.

What new opportunities does the technology open up for organisations, especially in real estate? Broadly speaking, AI offers new avenues for automation. It helps save time and cut costs by freeing employees from tedious tasks — such as manual data entry — so they can focus on higher-value activities. It also greatly enhances content and document generation capabilities.

Real-world applications emerging

Two use cases were presented during the conference. The first showcased a platform developed by PwC to generate board meeting minutes using generative AI — while ensuring data sensitivity and precision. In real estate fund management, such a solution could significantly reduce time spent on documentation while helping firms meet their regulatory obligations more efficiently.

KIPSUN, represented by Philippe Chevalier, is another solution that uses AI to help property managers improve energy efficiency and reduce emissions. “By deploying sensors and collecting data from multiple sources, a digital twin of the building can be created,” explained the company’s CEO. “AI can then act as a building manager, working to reduce energy use without compromising occupant comfort.”

The solution is already in use across more than 2 million square metres of real estate and has helped reduce energy consumption by 10 to 30%.

“AI can indeed be a strong ally in identifying optimisation levers while improving our understanding of user expectations,” said Quentin Limbourg, Group COO of IKO Real Estate. “The technology enables much more dynamic building management, generating savings that benefit everyone.” However, given the high costs and already elevated real estate prices, the implementation of such solutions is still rarely initiated at the request of users.

Serving operational efficiency

According to Idriss Goossens, co-founder of LuxProp Tech, technology must serve the needs of real estate professionals. “In its early stages, PropTech mostly focused on improving operational efficiency. A second wave then addressed client needs and ESG issues. Today, when it comes to generative AI, the primary focus remains on efficiency,” he explained.

Deploying AI-based technology is not easy — particularly because of the fragmented value chain involving developers, builders, managers, and owners. “Innovation can only truly emerge when all stakeholders are aligned and share common goals,” added Quentin Limbourg. “Unfortunately, that’s not always the case.”

Moderate impacts, gradual adoption

The promises of AI in real estate must also be put into perspective. As one speaker noted, no computer will ever complete a building. The shift is more evolutionary than revolutionary. “Everyone, at their own level, has a vested interest in exploring what AI can do to enhance competitiveness,” added Idriss Goossens. “There are real possibilities for improvement — provided adoption is managed properly, through training and experimentation.”

Beyond the exciting opportunities AI offers, its limitations and risks must not be overlooked. “We need to be vigilant around data confidentiality, but also the potential biases that can arise from how AI models are trained. Moreover, these systems can ‘hallucinate’ and produce inaccurate responses,” noted Bretislav Simral, Europe Innovation & Intelligence Director at Dentons. To address this, the legal advisory firm has developed its own AI solution, specifically trained on internal data. “There are many benefits. AI agents support us daily in drafting documents, extracting insights, and retrieving information,” he added. “We’re still at the beginning. But it’s already clear that AI will soon become an indispensable assistant.”

Growing with AI

Generative AI will primarily demonstrate its value in real estate as a lever for improving internal processes, design workflows, and project management. To reap the benefits, however, a structured approach is essential — across both operations and data management. This level of consistency is still too often lacking in the sector. The profession won’t transform overnight. But those who successfully align technology with their strategic goals will gain a significant competitive edge.