AI is also demanding new skills and expertise from CRE teams to make an impact in their organizations, with skills gaps in AI, analytics, and emerging technologies (36%) cited as the biggest barrier over the next 3-5 years. Limited change management expertise (26%), organizational silos (25%), and measurement challenges (23%) further complicate matters.
This creates a “technology dilemma” that reflects the vulnerabilities of an increasingly connected and AI-driven business environment. According to executive respondents (46%), organizations need to go beyond traditional cost metrics and invest in advanced technology to achieve productivity goals that are core to CRE key performance indicators (KPIs). However, three of the top four risks in the portfolio are technology-related, including cybersecurity and data privacy (47%), technology/AI disruption (41%), and uncertainty about AI’s impact on space (40%), with the other top concerns being economic fluctuations and budget pressures (43%). This hierarchy of competing priorities requires new adaptive strategies to navigate the convergence of challenges.
Peter Miscovich, JLL’s Global Future of Work Leader, said: “We are seeing a fundamental shift in the definition of high-performing companies. It’s no longer just about market position, size and scope. It’s about being an AI-powered company with the adaptability and organizational readiness to transform effectively amid ongoing disruption.” “Leading organizations are demonstrating deeper integration of real estate, human resources, and technology to support business strategy. These companies are leveraging data-driven AI decision intelligence to improve human performance and reimagine the workplace to achieve superior business outcomes. This fully integrated approach is a new blueprint for building resilient companies that can thrive amid ongoing disruption.”
