Use cases of AI in commercial real estate
As AI technology rapidly advances, its applications in real estate and construction are becoming increasingly vital. Recognizing the potential at this stage, we are focusing on custom GPTs to facilitate everyday tasks in Commercial Real Estate (CRE) without coding. Although the most effective approach, we believe, is to develop bespoke GPTs tailored to specific business processes, these series of articles will delve into practical applications of publicly available GPTs, illustrating the concept of their use. Disclaimer: The GPTs mentioned are sourced from the GPT Store, and their outputs have not been independently verified by the author, as accuracy depends on their training.
The integration of AI technologies such as ChatGPT in the construction management field is transforming how professionals approach project planning, execution, and communication. This article explores various applications of ChatGPT that are enhancing the capabilities of construction managers, including in estimation, project management, and legal aspects of construction.
ChatGPT can significantly streamline the estimation process in construction. It offers capabilities to quickly generate trade breakdowns from project plans, which can be used to prepare Requests for Proposals (RFPs) and communicate project needs to subcontractors. Furthermore, ChatGPT can assist in creating rough material takeoffs and cost estimates by analyzing project documents and plans. This swift generation of data allows construction managers to allocate more time to other critical project oversight activities. Another potential use case is for the AI to analyze trends based on data from previous projects or to review various bids and provide pricing for different packages.
In this example, a GPT gives a rough estimation based on RSMeans 2023 data.
Project management is another area where ChatGPT proves invaluable. It can automate the creation of project documents such as emails, meeting minutes, progress reports, and project schedules. This AI tool helps in drafting documents that maintain clear and consistent communication among project stakeholders. Additionally, it can summarize and highlight action items from meetings, ensuring that all team members are on the same page and that no critical tasks are overlooked.
For instance, a sample schedule is given to this GPT for analysis, and an analysis on loan draw dates is performed.
In the realm of construction law, ChatGPT assists managers by drafting contract clauses and correspondence that adhere to legal standards. This application is particularly beneficial for managers who are not experts in legal terminology. The AI can generate draft permits and contract documents, ensuring that all communications are precise and legally sound. However, it is crucial for these drafts to be reviewed by legal professionals to ensure compliance and accuracy.
Construction law knowledge is used to answer questions about contract law in the US in this example.
While ChatGPT offers impressive capabilities, its applications in construction management come with limitations. The AI’s outputs must be thoroughly reviewed by professionals to catch inaccuracies or generic content that might not apply specifically to the project at hand. Dependence on AI for critical thinking tasks, especially those involving unique project challenges or detailed legal issues, is not advisable at this stage. The technology is rapidly evolving, and future enhancements are expected to address these limitations.
ChatGPT represents a significant advancement in the toolset of construction managers, offering efficiencies in documentation, estimation, and legal compliance. As the technology matures, its integration into daily operations will become more seamless, providing even greater benefits to the construction industry. Nonetheless, it remains essential for professionals to maintain oversight and apply their expertise to ensure the successful application of AI in construction management.
