Commercial Real Estate Sees Rapid AI Growth, New Study Finds
First American Data & Analytics and DealGround have released new research revealing that artificial intelligence is rapidly becoming part of the mainstream commercial real estate industry, although many professionals still remain hesitant to fully trust AI for critical business decisions. The study, titled “CRE Industry Pulse Check,” highlights a growing divide between widespread AI adoption and confidence in the technology’s ability to support high-value transaction decisions.
According to the findings, the commercial real estate sector has entered a new phase of digital transformation in which AI tools are now being used regularly by a significant portion of industry professionals. However, despite the growing reliance on AI for research, productivity, and operational support, trust issues continue to limit how deeply the technology is integrated into real estate decision-making processes.
The report found that approximately 66% of commercial real estate professionals currently use AI-powered tools on either a daily or weekly basis. This demonstrates how quickly artificial intelligence has become embedded within the workflows of brokers, analysts, developers, investors, and property professionals. Yet while usage levels are rising rapidly, only a very small percentage of respondents said they fully trust AI when making actual transaction or investment decisions.
In fact, the study revealed that only 5% of respondents currently trust AI enough to allow it to directly influence real deal-making decisions. This gap between adoption and trust has emerged as one of the most important challenges facing the next stage of AI integration within the commercial real estate industry.
Researchers noted that many professionals are willing to experiment with AI tools and use them to improve efficiency, but they remain cautious about relying on AI-generated outputs without additional human oversight or verification. More than half of survey participants, representing 53% of respondents, said they currently use AI strictly as a support tool while excluding it from final decision-making processes. Another 17% reported that they use AI only when its outputs undergo extensive manual verification.
These findings suggest that while the industry acknowledges the productivity benefits AI can provide, most professionals still believe human judgment remains essential when evaluating transactions, underwriting deals, assessing risks, or making strategic investment decisions.
Matt Key, Vice President of Property Data at First American Data & Analytics, explained that the commercial real estate industry has largely moved beyond debating whether AI adoption will occur. Instead, the primary issue now centers on trust and confidence in the quality of AI-generated information.
According to Key, commercial real estate professionals are willing to embrace AI as long as the technology produces verifiable outputs supported by reliable and accurate data. He emphasized that trust in the underlying information is critical if AI is expected to evolve from a simple productivity enhancement tool into a true decision-making platform capable of influencing high-value transactions.
The report suggests that the next stage of AI development in commercial real estate will focus less on introducing new tools and more on improving the quality, accuracy, and reliability of the data powering those systems. Industry professionals appear to be looking for AI solutions that can deliver trustworthy, actionable insights within real-world transactional workflows rather than simply generating general responses or automating routine tasks.
The study also explored why some professionals have been slower to adopt AI more aggressively within their organizations. Interestingly, the biggest barriers identified were not related to cost or return on investment. Instead, respondents pointed to practical concerns surrounding usability, tool selection, and data reliability.
Approximately 34% of survey participants said they were uncertain about which AI tools they should be using. This reflects the rapidly expanding and often fragmented AI software landscape, where new platforms, applications, and specialized products continue entering the market at a fast pace. For many commercial real estate professionals, determining which solutions are credible, effective, and relevant to their workflows remains a major challenge.
Meanwhile, 32% of respondents cited concerns about accuracy as the primary reason they remain cautious about AI adoption. Because commercial real estate transactions often involve large amounts of capital, complex underwriting, legal considerations, and long-term financial risk, even small inaccuracies can create significant consequences. As a result, professionals remain reluctant to rely heavily on systems that may occasionally generate incorrect or unverifiable information.
By comparison, only 5% of respondents identified cost or unclear return on investment as their biggest concern regarding AI implementation. This finding suggests that the industry generally recognizes the potential value of AI technology but remains focused on ensuring that the outputs can be trusted before integrating AI more deeply into mission-critical operations.
Dan Mosher, CEO and co-founder of DealGround, said the study demonstrates that commercial real estate professionals are not rejecting artificial intelligence outright. Instead, they are carefully evaluating and testing its capabilities before allowing it to influence important business decisions.
Mosher explained that brokers and industry professionals are willing to adopt technologies that align with the realities of how they work on a daily basis. However, he emphasized that few professionals are prepared to risk major deals or investment decisions based on outputs they do not fully trust or understand.
According to Mosher, the future evolution of AI in commercial real estate will likely focus on integrating technology directly into operational workflows in a way that supports execution rather than simply providing answers or summaries. He suggested that the most successful AI solutions will be those capable of helping professionals complete real tasks, manage processes, and improve decision quality within actual transaction environments.
The findings come at a time when artificial intelligence is rapidly transforming industries worldwide, including finance, healthcare, logistics, construction, and real estate. In commercial real estate specifically, AI is increasingly being used for property research, market analysis, lease abstraction, underwriting support, predictive analytics, lead generation, and investment evaluation.
Despite this momentum, the study indicates that the industry remains highly cautious due to the high financial stakes involved in commercial transactions. Unlike lower-risk applications where AI errors may have limited consequences, commercial real estate deals often involve millions of dollars, long investment horizons, regulatory requirements, and complex negotiations. This creates a greater need for transparency, data accuracy, and human oversight.
The research also suggests that trust in AI will likely improve over time as technology providers continue refining models, improving data quality, and building systems specifically tailored to commercial real estate use cases. Companies that can combine accurate property data with transparent AI-driven workflows may be best positioned to gain broader industry acceptance.
As adoption continues growing, industry experts believe commercial real estate firms will increasingly seek AI tools that can integrate seamlessly into existing processes while enhancing efficiency, reducing repetitive tasks, and supporting more informed decision-making. However, the transition from experimentation to full operational reliance will depend heavily on whether technology providers can consistently demonstrate reliability, accuracy, and measurable value.
Ultimately, the CRE Industry Pulse Check report highlights an industry in transition. Artificial intelligence is no longer viewed as a future concept within commercial real estate—it is already becoming part of everyday operations. Yet the study also makes clear that widespread trust has not yet caught up with adoption, leaving a significant opportunity for companies capable of bridging the gap between AI capability and professional confidence.
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