Precisely, a global leader in data integrity has announced that Generali Real Estate, one of the world’s leading real estate asset managers, relies on Precisely for its data enrichment expertise. Precisely Points of Interest (POI) data helps Generali Real Estate unlock greater context from location data, and fuel the Machine Learning (ML) and Artificial Intelligence (AI) advancements transforming the real estate market.
Recent reports highlight the transformative impact of AI and ML on the real estate sector. According to a study by Deloitte, 60% of real estate companies are actively investing in AI technologies to enhance their operations. Furthermore, the AI in Real Estate Market report by Research and Markets projects that the AI real estate market will grow from US$1.4 billion in 2020 to US$6.4 billion by 2025, at a CAGR of 35.4%. The National Association of Realtors found that 37% of real estate firms are using AI for property valuations, while 31% employ it for market forecasting. These statistics underscore the significant role AI and ML will play in shaping the future of real estate.
When Generali Real Estate became one of the first real estate asset managers to establish a dedicated division for AI and Machine Learning (ML) innovation, its first task was to disrupt the traditional decision-making processes that usually inform precise investment strategies. Standard real estate metrics often do not reveal the reason for significant variances in the value of different assets, even when very similar assets are located only within a few streets of each other. The team discovered that as much as a 60% change in value, observed over a seven-year period, could not be explained without additional data inputs.
To address these challenges, Generali Real Estate developed City Forward, an innovative cloud-based location intelligence platform for real estate investment managers to make smarter decisions powered by highly accurate AI-driven insights. Achieving this at scale throughout Europe required navigating the changing and diverse characteristics of different cities while maintaining maximum levels of data integrity.
City Forward leverages Precisely Points of Interest data, alongside data from other third-party providers, to deliver comprehensive information on business locations, leisure hot spots, and other geographic features – revealing hidden insights on real estate assets. Precisely POI data is also uniquely geocoded leveraging the Precisely portfolio of market-leading geo addressing solutions, ensuring customers are equipped with the most accurate location and address information possible.
“Ultimately, without data context, there is no such thing as AI in the field of location intelligence,” said Costanza Balboni Cestelli, Head of Data Intelligence and Innovation at Generali Real Estate. “Precisely provides us with access to accurate, consistent, and contextual enrichment data that helps power our AI/ML models in a way that is both scalable and reliable.”
The City Forward platform uses over 800 variables and 30 different AI/ML models to deliver intelligence for investment analysis and real estate valuation, including sustainability considerations such as carbon emissions and climate action. Insights from Precisely POI data also help power the platform for a broader range of important uses, including retail site selection, urban planning, geo-targeted marketing and more.
Research shows that 94% of business leaders agree AI is critical to success over the next five years, but despite this, 4% of leaders believe their data is not AI-ready. It highlights a concerning disconnect between the growing rates of AI adoption and levels of confidence in the data feeding the models behind it.
“For trusted AI, you need data integrity, and that means ensuring the accuracy, consistency and context of the data fuelling AI models,” said Tendü Yoğurtçu, PhD, Chief Technology Officer at Precisely. “To ensure trusted business decisions powered by AI, it’s crucial for organisations to be able to integrate data at the speed it’s needed, understand and govern its responsible use, observe and improve its quality, and enrich it for maximum context.”
The future of real estate is set to be revolutionised by the integration of AI and ML technologies. As the industry increasingly relies on data-driven insights, the need for precise and enriched data becomes paramount. AI and ML will enable real estate professionals to predict market trends, optimise asset management, and enhance investment strategies with unparalleled accuracy. This technological evolution promises smarter cities, sustainable urban development and a more dynamic real estate market, underpinned by the robust data integrity solutions provided by leaders like Precisely.
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