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So you want to be in PropTech?

How to Ideate a PropTech Business using Generative AI

PropTech VC PI Labs released a report last week about ‘AI for a Greener Built World’ titled ‘Sustainably Intelligent’.

In it they broke down environmental use cases along the real estate value chain. In 7 Categories.

So I thought ‘how could AI help someone develop a business aimed at one of more of these defined use cases?’

I started with Category 1: Site Supply and Acquisition.

This listed six tasks required:

  • Localised environmental data and analysis

  • Identification and monitoring of biodiversity

  • Biodiversity management and intervention

  • Robotic insecticide alternatives

  • Soil quality and health analysis

  • Microclimate simulations

So for each of these I enlisted the help of Claude 3 Opus.

First off I defined to it what I meant by Generative and Predictive AI.

Then I asked the following questions, for each item:

  • Might this benefit from Generative AI?

  • Might this benefit from Predictive AI?

In every case there was a use for Generative and Predictive AI (this is not surprising with a GPT - a General Purpose Technology - they are pervasive)

So, then I needed to know:

  • What ‘Actions’ could Generative AI take?

  • What ‘Actions’ could Predictive AI take?

And

  • What inputs (data) would be required so that these ‘Actions’ could be undertaken?

  • What Data Sources are these inputs likely to come from?

Then finally I asked:

  • What technology stack would we need?

  • What would be the right evaluation metrics for this item?

  • What integration requirements, with other systems, would we need?

Having done this I needed all this information formatted as a table and available to be downloaded.

I then took this into Google Slides, and cleaned it up a bit before ending up with the table below.

You’ve now got a strong set of data to start thinking about your proposed PropTech business.

You can see how Generative and Predictive AI can be woven together to provide analytics and presentation/communication layers. You can see what value there is to create, what data sources you would require to make this happen, and the technological skills your team would need access to.

From this you should be able to ascertain whether 1) it’s possible 2) You could make it happen and 3) Does it look like there’s enough value there for all the work involved?

Don’t like this category? Then work your way through the other 6.

Then you will have covered off environmental use cases for AI along the real estate value chain!

Is it a GO?

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Using Midjourney to treat ‘similar’ spaces differently

Original image - Fora Shoreditch

Midjourney V6 has a new option - Consistent Characters - upload one image, use the parameter —cref URL (of that image) and you can have ‘consistent characters‘ - mostly this is aimed at people wanting the same ‘human‘ to be in a range of scenes but as you’ll see from the examples below it works pretty well for ‘fixing‘ a space and then applying different stylings to it.

It this case I took an image from Fora Shoreditch and then applied four treatments to it: Minimalist Zen, Industrial Chic, Eclectic Bohemian and Sleek and High-Tech. The full prompts I used are under each image.

It’s pretty good. Or certainly ‘good enough‘ to get a feel for how different looks would turn out.

Minimalist Zen: Clean lines, simple forms, and a neutral color palette create a calming and focused atmosphere. Incorporate elements such as light wood finishes, white walls, and subtle accent colors like soft greens or blues. Use natural materials like bamboo, stone, and linen to add texture. Include plants, a small indoor water feature, and uncluttered workspaces to promote a sense of tranquility and mindfulness.

Industrial Chic: Embrace the raw, unfinished look of industrial spaces with exposed brick walls, concrete floors, and metal accents. Incorporate vintage or repurposed furniture pieces, such as old factory carts or reclaimed wood tables. Use edison bulb lighting fixtures and metal shelving to add to the industrial vibe. Soften the look with cozy rugs, plush seating, and vibrant artwork to create a balance between edgy and inviting.

Eclectic Bohemian: Create a vibrant and creative space with a mix of colors, patterns, and textures. Incorporate mismatched furniture pieces, such as vintage armchairs, colorful ottomans, and patterned rugs. Use a variety of lighting sources, including floor lamps, table lamps, and string lights, to create a warm and inviting ambiance. Add plenty of plants, woven wall hangings, and eclectic artwork to complete the bohemian look.

Sleek and High-Tech: Design a modern, high-tech office with a focus on innovation and efficiency. Use a monochromatic color scheme with pops of bold, bright colors for accent pieces. Incorporate glass walls, sleek metal finishes, and minimalist furniture with clean lines. Include state-of-the-art technology, such as large digital displays, interactive whiteboards, and integrated charging stations. Use LED lighting and smart climate control systems to create a comfortable and energy-efficient environment.

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Human-Centricity: Our Superpower in an AI-Mediated World

Midjourney / Antony Slumbers

"The future is already here – it's just not evenly distributed."

— William Gibson

If you work in commercial real estate, you know change is afoot. Generative AI, from ChatGPT to Midjourney, is rewriting the rules at a dizzying pace. Suddenly, machines can handle tasks we thought uniquely human - writing, analysis, even creative ideation. It's thrilling, but also unsettling. Where do we fit in this brave new world?

I believe the answer lies in doubling down on our humanity. In a world increasingly mediated by AI, being unabashedly human-centric will be our superpower. From how we think as individuals to the spaces we create and cities we build, putting humans first is how we'll harness these extraordinary machine capabilities for the greater good.

The Human Mindset

Let's start with our own minds. As AI takes over more cognitive tasks, it's tempting to fixate on the tech - to rush to automate everything we can. But as Picasso presciently noted, "Computers are useless. They can only give you answers.”

Our value lies in asking the right questions. In bringing empathy, imagination, and wisdom to bear on how we deploy AI. We need to think critically about what we automate and why. To consider the human impacts and ethical implications. To use our judgment to oversee and guide these powerful tools.

So cultivate curiosity. Hone your creativity. Practice reflection and critical thinking. The more you develop these uniquely human capacities, the better you can steer AI toward truly beneficial ends.

The Human-Centric Workplace

Now, consider your office. As hybrid work erodes old norms, we have a once-in-a-generation opportunity to rethink corporate space. But without guiding principles we risk automating for automation's sake - creating offices that are efficient yet soulless.

A human-centric #SpaceAsAService model provides a compass. It means tailoring spaces (via AI and other tech) to maximise user health, productivity and delight. Leveraging AI for hyper-personalisation that makes each worker feel seen and supported. Designing for serendipity, social connection, and creative collisions.

Imagine an office that reconfigures itself daily to suit the task and teams at hand. That nudges you when you need a screen break or pulls up key details before a meeting. Where every element - light, temperature, furnishings - adapts to optimise your wellbeing and cognitive flow.

That's the AI-powered workspace of the near future. But it only works if human needs drive the algorithms. Anchor your workplace in that human-first mindset, and previously impossible employee experiences come within reach.

The Human-Centric Company

For all the buzz around PropTech and smart buildings, the path to true innovation starts in the C-suite. Will your company see AI merely as a tool to reduce headcount and eke out efficiencies? Or recognise it as a means to elevate and empower employees?

Forward-thinking leaders in commercial real estate will choose the latter. They'll use AI to augment, not replace, their people. To automate mundane tasks so humans can focus on higher-order work. To surface insights that help humans make smarter decisions. To enable more flexible, fulfilling ways of working.

But they'll also grapple earnestly with the human implications. How do we reskill and redeploy those whose jobs do change? What guardrails do we need to keep AI accountable and prevent misuse? How do we bake ethics into our AI strategies? Who is your Chief Humanity Officer to navigate these questions?

The companies that thrive in the age of AI will be those that keep humans squarely at the centre. Not just in theory but in practice, with every business decision informed by genuine care for people.

The Human-Centric City

Finally, pan out to the city level. As urban cores reel from post-pandemic shifts, it's clear we need a reboot. But we have to be intentional about what kind of cities we want AI to help us create.

Again, human-centricity lights the way. It means leveraging AI and IoT to make cities more liveable, equitable, sustainable and vibrant for all citizens. Using predictive analytics not just to optimise traffic and energy use but to proactively address social determinants of health. Harnessing digital twins and generative design to co-create neighbourhoods that truly serve community needs.

Imagine a city brain that helps policymakers pinpoint and eradicate sources of air pollution. That dynamically rezones blighted blocks for mixed-use vibrancy. That engages residents to iteratively co-design lively public spaces. Where AI enables urban planners to shape Bespoke Cities deeply responsive to localised human wants and needs.

The potential is vast. But without an explicit focus on human wellbeing and purpose, we risk surrendering our cities to the cold logic of algorithms. We must define, upfront, the human values we want reflected in the code.

Our Human Future

"We are as gods and might as well get good at it," Stewart Brand famously wrote. AI is making us ever more godlike in our capacities. The question is what kind of gods we will choose to be.

Will we be the rigid, unfeeling kind who use these tools to make work and life ruthlessly productive but less meaningful? Or the wise, compassionate kind who use them in service of human potential and flourishing?

I, for one, am determined to keep the human factor at the heart of the real estate sector. To evangelise for the development of spaces and places that don't just house humans but help us thrive. To pursue profit, yes, but never at the expense of human purpose.

In the face of revolutionary tech, may we stay true to our evolutionary heritage. Not machines to be optimised, but humans to be uplifted. Messy, unpredictable, and magnificent still.

#HumanCentricity is our way forward. Let's get good at it.

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‘Gradually, then suddenly’ - Part 2

Midjourney / Antony Slumbers

Where’s your moat?

How are you planning on future proofing yourself against a world increasingly mediated through AI?

In Part 1 we asked:

1. Are you thinking how to redesign your business for an AI mediated world?

2. Have you checked to see which of your customers are?

But we should also be asking similar questions as individuals.

Because intrinsically we should, but also because each of us needs to assess how our answers differ, or not, from the same answers when asked about the companies we work for, or with.

After all, our personal incentives are somewhat to very likely to be different, and as the wise Charlie Munger used to say ‘show me the incentives and I’ll show you the outcomes’.

Let’s just take one example.

We often hear people say ‘’AI won’t take your job, but someone working with AI will’, but this is rather simplistic. What if, by working with AI:

  1. We find our jobs commoditised? From various analyses it appears to be that Generative AI benefits below average workers more than it does top tier ones. So whilst that means a levelling up across the board, it also means a greater supply of people are now capable of doing X, augmented with AI, than previously. And when you have a rise in supply with no rise in demand the price for those services goes down. Simply put, employers won’t have to buy in top tier talent to do X anymore, so average renumeration is likely to decrease.

  2. By working with AI, being augmented by it, one is also training the AI. Explaining in granular detail how A impacts B, or X leads to Y. Over time, as we know, AIs improve as they are fed more data to learn from. Whilst not currently a major force, the development of AI ‘Agents’ is rapidly developing and these ‘Agents’ are being designed to be combinatory. I.e they can be plugged together like Lego. Agent 1 does this, then hands over to Agent 2 to do that. So, whilst today we talk about AI only impacting tasks not jobs, this may well change when multiple tasks can be combined into one action, or AI workflow.

So in both these cases being augmented by AI is a net positive for employers, and a net negative for employees. See what I mean by incentives?

How then does one respond?

There are many possible ways, but there are only three core directions of travel:

  1. A certain type of company will push ahead with augmentation hoping for exactly the results noted above, and hoping that their workforce does not click they are training their replacements, or actively reducing their value. I expect to see a lot of this. Sadly, certain types of job, comprising very large numbers of workers, such as commodity call centres, will ‘fit nicely’ into this management strategy. Much senior management of course will be highly incentivised personally to adopt this approach. Getting rid of employees is a great way to boost the bottom line - look at how effectively large tech companies have done this over the last two years.

  2. A different type of company, with a different type of employee/employer relationship, especially around areas of ‘Trust’, will seek to pursue a third way of working with AI. This will be to lean in to commoditisation and substitution of their existing ways of working, but to do so with a view to redesigning these workflows to enable more and/or new value creation. With the underlying mindset being that with these tools we can create better/cheaper/faster. That, as in all previous technological ‘phase changes’, creative destruction has occurred and on balance, over time, society has benefited.

  3. Or alternatively, even disregarding the development of much in the way of new products or services, employers and employees embrace all these trends and try to grab market share. For a time at least, until the market catches up, there is sure to be the opportunity for companies who are super productive to be super competitive. Most likely at the expense of the Type 1 companies mentioned above.

Ultimately, at an individual level, you need to concentrate on two things:

  1. Understanding the incentives of the company or companies you work for, or with. What is the management ethos? How are they likely to embrace AI? Do you trust them with your labour? If not, then plan to move on. You’ll only be disappointed if you don’t.

  2. And even more importantly, think hard about how and where your value resides. What can you do that the machines cannot? Which skills can you develop that will remain premium? Don’t kid yourself with ‘they’re just stochastic parrots’ or ‘they only produce average, generic content’. Often, average, generic content is enough and anyway these tools are improving exponentially. Assume they can do more than most think, and plan accordingly. Pay special attention to where you think value will either remain or move to - for example Uber commoditised knowledgeable taxis drivers, but greatly benefited the designers of Uber’s software and business. Remember Clayton Christensen’s "Law of Conservation of Attractive Profits." which posits that as industries evolve, particularly through processes of modularity and commoditisation, the locus of attractive profits tends to shift along the value chain. There’s always profits somewhere - that’s what you’re looking for.

Looking after number 1 needs to be your starting point. And if you are looking at all of this from the company point of view, look out for people who are looking after number 1. They’ll be best at helping you navigate to a prosperous future.

So much of the future will be determined at the regulatory level (look out especially for Laws levelling out tax treatment of Capital and Labour), and many things are already written in stone in terms of direction of travel, but as individuals we still do have great agency, and we must use it.

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'Gradually, then suddenly' - Part 1

Midjourney / Antony Slumbers

This was how Ernest Hemingway described going bust. Individually.

I'm increasingly thinking it's going to be more appropriate for companies.

Why?

Because every business is going to be attacked by startups (or cutting edge incumbents) who are going to look at how, in an AI mediated world, they can automate what can be automated, augment talent where it adds value, and redesign each and every workflow to maximise leverage from a tsunami of exponential technologies.

Every business is going to be competing with others who are built from scratch to be not 10% but 10X more productive.

Yet most companies are still debating how to deal with new ways of working four years after the pandemic started. Most companies invest next to nothing in training, least of all in training management. And most companies have no idea what is coming down the track. Their thinking is gradual, when suddenly is about to hit them.

And most companies are incentivised to operate like this. It's 'how we do it here'.

Which never used to matter that much. For all the constant 'sound and fury' nothing much did change year to year. You could afford to, indeed were encouraged to, iterate rather than disrupt. It worked. And still does work for many.

These were the 'decades where nothing happens' whereas we're now being repeatedly hit by the 'weeks where decades happen' to bastardise Lenin's famous quotation.

This week Klarna issued a press release explaining how their new AI Customer Service bot was now doing the work of 700 people. At a higher level of performance. And not as a co-pilot but as a replacement for those people.

And in this video LTX Studio released a teaser for their AI powered video production software, Version 1. Prepare to be blown away. This was supposed to be decades away.

For those in real estate two thoughts:

1. Are you thinking how to redesign your business for an AI mediated world?

2. Have you checked to see which of your customers are?

And one hypothesis: Failing to do 1 and 2 leaves you terribly exposed. Either to competitors who already are, or to seeing your portfolio turned upside down as your customers find their industries turned upside down.

As ever, change can be a bug or a feature. It's just that today the stakes are rather higher than normal.

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