Redefining 'what is the best affordable option?’ // Trillion Dollar Hashtag #6
Number 5: Redefining 'what is the best affordable option?’
This is the fifth in our series exploring ten themes that will shape the next decade. Here we'll be looking at the emergence of Generative AI as a game-changer in defining the "best affordable option”.
Number 5: Redefining 'what is the best affordable option?’
‘AI is not just making existing services more affordable; it's enabling access to high-quality services and products that were previously out of reach for many.’
We hear a lot about the downsides of Generative AI. It’s just a ‘Stochastic Parrot’, a plagiarism machine, a regurgitator of ‘average’. And, of course, ‘it’s not as good as a human’. And there are degrees of truth in all of this. But in a business context it all misses the point. Which is ‘can you afford better?’.
In business, the quality of service we receive is directly tied to what we can afford—and the same applies to the quality we provide. Every service operates within defined price points: pay more, get more. For decades, this has created a clear divide between those who can afford premium offerings and those limited to more basic options.
Generative AI is going to upend this apple cart. It is going to redefine what is meant by ‘affordable’. In terms of the services you receive, or the services you supply. In short, it is going to massively redefine ‘the best affordable option’.
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Exploring how AI and technology are reshaping real estate and cities to serve the future of work, rest, and play.
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In seven key ways:
1. Accessible Expertise
Generative AI-driven tools enable expert-level analysis and services at a fraction of conventional costs, making capabilities once reserved for large enterprises or high-net-worth individuals accessible to a much broader audience. Although these insights might not always be perfect, they are often “good enough” for immediate operational decision-making—and can then be refined through human oversight where needed. This opens the door for smaller companies to provide such things as strategic advisory at scale, low cost legal and compliance services, as well as rapid prototyping.
2. Generative AI as ‘Infinite Interns’
Think of these tools as a limitless pool of junior-level support—tirelessly parsing data, generating drafts, performing research, and handling repetitive tasks. This offloads routine work from expensive human resources, who can instead focus on higher-value activities. Think of using AI for research & data aggregation, customer service & lead qualification or content generation.
3. Co-intelligence Augmentation
Rather than treating Generative AI and humans as separate or competing entities, co-intelligence augmentation emphasises collaborative problem-solving. AI handles large-scale pattern recognition, humans handle strategic oversight, judgement, and creativity, resulting in solutions that neither could achieve in isolation. An example might be AI generating proposals optimised for energy efficiency or occupant wellbeing, with human experts refining for aesthetics and regulations.
4. New Product Enablement
Generative AI’s ability to rapidly analyse, adapt, and improve, can lower barriers for products and services that were previously too resource-intensive or complex to develop. By automating high-cost processes, AI frees budgets and human resources for innovation and experimentation. Dynamic pricing, space as a service marketplaces, new categories of health-focused living and working environments - what might we conceive of with a little more time to think?
5. Democratisation of Luxury
Previously exclusive, high-end experiences can now be delivered at scale through AI-driven operational efficiencies. By automating costly service components, businesses can offer premium experiences to broader market segments at more accessible price points. What might be possible in areas like personalised virtual experiences, or concierge services?
6. Scalable Personalisation
Generative AI can process large amounts of data about individual customers, tenants, or partners, allowing companies to deliver tailored offerings at a mass-market scale. This merges the best of mass production (cost efficiency) with the best of customisation (unique user experiences), opening up opportunities for exceptional tenant-focused solutions, on-demand amenities or custom financial products etc.
7. Augmented Decision-Making
Generative AI-powered analytics bring predictive insights, risk modelling, and scenario planning capabilities that were once the domain of top consulting firms or large corporate strategy teams. This levels the playing field for smaller companies competing in complex or rapidly shifting markets such as real-time market forecasts, scenario planning or financial & risk analytics.
Collectively, these 7 demonstrate how Generative AI is reshaping the business landscape by lowering barriers, boosting efficiency, and unlocking new forms of value creation.
What’s more it is important to appreciate that this is a moveable feast.
In autumn 2024, Klarna announced that they were planning on replacing Salesforce and Workday with internally developed AI-driven workflows. Now they are a tech company and have the internal skills to do something like this, whereas most companies could not. But with every month that passes the capability of off the shelf tools is increasing and this is enabling more and more companies to create sophisticated, customised solutions that were previously only available through high-end SaaS providers.
We’ve previously discussed (Theme Number 3) the rise of ‘Fast, Agile, Ultra-Productive Superteams’ and it is companies made up of these that will be pushing hardest in the 7 areas above. As they do, we’re going to see the landscape of who does what in real estate undergo a lot of change.
All of this amounts to a level of competitiveness that is new to the real estate industry. Combine deep domain knowledge and advanced, cutting edge technologies and the ‘best affordable option’ is not what it was just a few years ago. Extrapolate forward a few years - where might it be then?
Next Steps
If you’re a small real estate firm, how could Generative AI help you punch above your weight?
For larger organisations, where is your AI strategy creating competitive advantage?
I’d love to hear your thoughts.
All things
#SpaceasaService
Exploring how AI and technology are reshaping real estate and cities to serve the future of work, rest, and play.