Why real estate's AI success depends more on people than technology

The real estate industry is undergoing its most significant transformation in a generation, with the rapid adoption of AI mirroring the early days of the internet – a period of explosive experimentation that will reshape how our industry creates and delivers value.

Yet beneath the excitement lies an under-appreciated reality: the greatest barriers to AI success are not technological, but human – including within the real estate sector.

Just three years ago, only 5% of real estate companies were testing AI solutions. Today, that figure has skyrocketed to 90%. This dramatic shift reflects a widespread recognition that AI transformation is no longer optional, but inevitable.

However, despite this surge in AI pilots and proofs-of-concept, a mere 5% of companies report that they are actually achieving their stated AI objectives. The disconnect between goals and achievement reveals where the real work must begin.

The rush to launch AI initiatives, often driven by executive mandates rather than strategic planning, has revealed a critical gap in organizational readiness.

JLL’s Global Real Estate Technology Survey 2025 shows that more than 60% of real estate companies remain strategically, organizationally and technically unprepared for a scaled AI implementation that moves beyond the pilot stage.

These companies are in the "pilot trap", generating impressive demonstrations without building the foundational capabilities necessary to drive meaningful business transformation.

As we move through 2026, companies that launched multiple pilots without systematic planning will face mounting pressure to demonstrate a tangible return on investment.

This pressure will force difficult decisions: either make substantial strategic investments in AI capabilities or abandon programmes that fail to deliver measurable value. The result will be a widening competitive gap between organizations with mature, successful technology programmes and those that find themselves lagging.

The implications of AI extend beyond internal operations, creating ripple effects across the real estate market. For example, market uncertainties amplified by AI are driving occupiers to make portfolio optimization an ongoing, dynamic effort.

Their demand for lease terms is diversifying at a rapid pace. Some occupiers are willing to commit only to 12-month terms to maximize agility, while others prefer to lock in predictability through longer leases, especially amid a shortage of quality office space.

These shifting occupier demands create pressures throughout the real estate ecosystem. Property owners and landlords face new challenges in refinancing and capital planning as traditional lease structures no longer provide the same predictable cash flow. Business leaders have yet to fully figure out how to adapt to this fast-changing landscape.

Navigating these complexities requires more than sophisticated algorithms or cutting-edge platforms. Success demands strategic thinking, adaptive leadership, and organizational resilience. This is why AI transformation is ultimately a people challenge, not a technology problem.

In our recent research, we found that workforce and talent gaps are the number one barrier to an effective tech strategy and timely tech decisions. The data is stark: only 33% of the workforce feel they have been adequately trained on AI, according to a study conducted by JLL. This skills gap creates a perilous disconnect between technological possibilities and an organization's ability to capitalize on them.

The contrast between leading companies and laggards reveals the importance of human capital investment. Despite facing similar budget pressures, organizations with successful AI programmes are consistently better resourced in terms of AI skills and capabilities.

With strong leadership support, these top-performing companies define clear roadmaps with measurable success metrics, robust change management and established processes for engaging stakeholders.

The role of leaders in AI transformation is central. Companies with tech programmes sponsored by at least one C-suite leader are three times more likely to have a successful tech programme. However, effective leadership in this context extends beyond issuing mandates or approving budgets.

True leadership in an era of technological transformation requires proactive engagement, driving capability-building and fostering business innovation. Business leaders need to identify the core skills and values their companies will need to navigate longer-term changes. Above all, leadership here means investing in people, in finding the right talent and fostering a culture where innovation can thrive.

The most enduring value of the AI transformation will belong to companies that build the capacity to adapt to waves of change we cannot fully predict. It is not just about becoming more efficient or growing faster; it is about fostering organizational agility and resilience to continuously evolve as AI capabilities advance.

The business leaders who will thrive in real estate are those who understand that while technology is a powerful tool, it is people who will ultimately unlock its true potential.