With its ability to understand and learn, AI is the technology of the future and not just a passing fad. And this is true not only for capital markets. Association for Financial Markets in Europe (AFME) identifies the ability of Artificial Intelligence (AI) in boosting the prowess and efficiency of multiple functions related to the capital markets viz. client communication, compliance, reporting and management of risk, and processing at the back end. An October 2019 report by Greenwich Associates found almost half of professionals in the capital market sector already using AI. Echoing AFME’s findings is a report authored by Deloitte in conjunction with the World Economic Forum which pinpoints AI’s potential to decentralize capital availability, identify hidden investment avenues, free up human resources for high value operations, better track risk exposure, and empower real time optimization of capital reserves. AFME’s report also sheds light on the possible hazards of AI in capital markets viz. unrepresentative data input, escalation of unintended negative consequences, and potential curtailment of transparency. Proper governance, operational control, education-awareness, robust data quality, and standardization can, however, address these issues, the AFME report goes on to say.
By giving clients a genuine feel of what their office or home looks like, and how it can be made to look, Virtual Reality (VR) and Augmented Reality (AR) navigate the real estate agent through the toughest part of the deal making process - getting a prospective buyer to sign an agreement. And, these technologies can do so without the buyer actually visiting the property. People expressed willingness to pay for the knowledge and convenience that comes when virtually visiting a property in a live poll at the Realities Centre in London that was hosting a Virtual Reality (VR) and Real Estate event, reports Ecorys in a study titled “Virtual Reality and its Potential for Europe.” Across the Atlantic, a survey by the National Association of Realtors found 77% real estate agents vouching for the utility of Virtual Staging, which, they say, assists clients better visualize their potential property. To harness the umpteen merits of VR and AR in real estate deals, realtors need to invest in technology, which can be expensive. However, advances in technology normally bring down its cost, a phenomenon that should make realtors look forward to a technically bright future.
Smart warehouses utilize 40% less floor space than their traditional counterparts, apart from slashing accident rates and propelling eco-friendliness and productivity to higher levels. With e-commerce pushing warehouses (logistics real estate) inside the boundaries of cities in Europe, the lower areal footprint of such warehouses becomes a huge asset. Warehouses are an inseparable part of the supply chain plus important sources of competitiveness because they exert immense influence on the accuracy and on-time delivery of goods to the end user. After all, the ultimate objective of supply chain management is the on-time delivery of the required high quality products to the end user. Connected warehouses link all stakeholders across the supply chain and bring them on the same page, something that improves transparency and allows the initiation of proactive measures. Using Internet of Things (IoT), connected warehouses lowers the bullwhip effect and thereby push the accuracy of demand forecasting to great heights. Possibly, the driver for M&As in this sector will be the compulsion on suppliers to base their inventory as close as possible to their clients in view of the disruption of supply chains unleashed by the COVID-19 pandemic. Investment in connected warehousing will generate excellent returns, but only over a prolonged investment horizon.
Digital buildings boost employee productivity by up to 16% and operating income by 5% while cutting energy usage by a maximum 30%. The digitization of buildings comes armed with myriad challenges and opportunities for the real estate promoters and service providers. Real estate sector is miles behind cutting edge technology trends and this exposes promoters and service providers to data and technology companies entering the field. These players are, however, at the very source of data in the sector, a position that can make data-technology companies seek their partnership. Remote workers – numbering 25 million in EU28 or 10% of the EU28 workforce in January 2019 – are on the rise in Europe, meaning customers will increasingly demand commercial facilities in residential. Rich revenues from the data available from these smart systems will incentivize the digital transformation by promoters and service providers. City centres and cities with high real estate demand will first demand such tech-savvy digital buildings because this is where promoters can generate quicker ROI with better benefit-cost ratio. Municipalities and local authorities may base their permissions on related technologies such as Building Information Modelling (BIM).
Nanotechnology has empowered the creation of materials with super structural strength, anti-microbial features, higher eco-friendliness, and self cleaning capacities, something which can revamp the construction sector making buildings stronger, greener, cleaner, and more anti-microbial. It doesn’t come as a surprise that Avanzare is building a fresh 10,000 square meters Graphene production plant in Spain. Human development is inseparably linked to advances in material technology, starting from the Stone Age and moving to the Bronze Age, Iron Age, Glass Age, Steel Age, Aluminium Age, Plastic Age. There is also the Silicon Age that ushered in the Information Technology era.
“One of the rich world’s most serious and longest running economic failures,” is how a cover story in The Economist chose to describe home ownership. Why failure? Because, many cannot afford a home near large cities. Well, 3D Printing could change all that.
In May 2016, Dubai grabbed headlines by being the location for the world’s first 3D printed office building – printed in seventeen days and assembled in two. Oh, and it also cut labour and construction costs by 50% while requiring a fraction of the manpower that conventional buildings do. Early 2020 saw Dubai completing the world’s largest (by volume) 3D printed building, somewhat shorter than the world’s tallest 3D printed building that has dotted Suzhou’s (China) skyline since 2015.
But while its capacity to cut costs, safety hazards, wastes, and construction-assembly time hold groundbreaking potential, 3D printers can use only some building materials, errors in digital modelling can prove extravagant, and transport and storage of printers on site can be a significant challenge. Apis Cor (Russia), Be More 3D (Spain), WASP (Italy), and ICON (United States) are among the top global companies that 3D print houses.
LinkedIn cut annual operational expenses by $100,000 at its headquarters using AI-powered technology by Gridium, a company that focuses on optimizing property resources and saving energy. Smart property utilization is just one application of Artificial Intelligence (AI) in the real estate sector. Data management is the primary application of AI in real estate which transforms into rapid property search, correct forecast of property value, efficient issue of mortgages, superior lead generation, and avoiding budget overruns.
Goldman Sachs estimates the drone market to surpass the $100 billion mark by 2020. Real estate holds great potential for drone technology application – property marketing, faster and safer construction operations, home delivery services, safer infrastructure maintenance, property surveillance . . . the list goes on.
At the focal point of the impact of technology on activities in the healthcare and medical estate sector are data management and communication. Unified storage of all patient data and making it accessible to the relevant medical professional quickly and easily enables better treatment. Big Data, Electronic Medical Records, and Dedicated Mobile Apps are useful here. Tele-health or Telemedicine, also called Remote Medicine, is a boon for patients living in remote or rural areas, miles away from the nearest specialist. Record keeping and data security acquire paramount importance in such a setting and this is where the significance of Blockchain Technology comes into play.
Proptech, the short form for Property Technology, received as much as $20 billion in investments in 2018 as per research firm VentureScanner, a 38% rise from the corresponding statistic in 2017. Considering that investors allotted only $20 million in 2008 and that the real estate industry is acutely conservative in adapting to innovative technologies, the $20 billion figure is enormous. Availability of lucrative assets and changing tenant expectations are coercing investors and other market players to hunt for fresh business models, alternative investment options, and methods to optimize expenses. Technologies and trends shaping this transformation include Big Data, Mobile Apps, Internet of Things (IoT) for smart property and building management, Space as a Service (SPaaS), and On-Demand Real Estate Market. GetHome, ShareSpace, Opendoor, and Flyhomes are among the proptech start-ups facilitating this metamorphosis. Unlike the last decade, however, property investment will not be a sure shot safe investment destination as local bodies and governments take to policy and tax measures to limit demand, particularly overseas demand. And then, there is the conservative outlook of the real estate sector to confront with.
Expected to clock an impressive $1.2 billion by 2020 and expand at a 20% CAGR between 2019 and 2022, the market for commercial use of unmanned aerial vehicles (UAVs) is getting pushed upwards by their increasing use for quicker, cheaper, and more eco-friendly delivery of goods.
Drone is the name by which we know the UAVs and everybody’s talking of them since Amazon decided to use them for parcel delivery. By no means is Amazon the only exponent. DHL, Google, Skycart, Matternet, Flirtey, and Zipline have got onboard or are in the process.
Worldwide livestreaming market is forecasted to hit $60 billion by 2026, almost double from the $32 billion size in 2017. Humans are social animals and, come what may, will try and socialize – we can’t fight millions of years of evolution just like that. Plus, resilience is an ingrained human trait. Although cowed down under the initial onslaught of the COVID-19 pandemic, the social humans made a comeback via multiple channels.
People believe something when they see it. Visualization is powerful tool and that is precisely what VR and AR deliver. Virtual Reality (VR) and Augmented Reality (AR) coupled with 360-degree cameras and mixed reality allow people to digitally feel a space in three dimensions before modifying it, something that saves time, effort, and money for all the stakeholders. For example, VR can create a simulated environment that is large enough for the user to walk through. AR takes this further by enabling users to virtually view where, for example, wardrobes will be located after renovation of the space.
Financial analysis software helps organizations boost revenues, profits, resource utilization, and customer satisfaction by properly directing their investments based on identification of key performance indicators (KPIs), financial efficiency measures, and customer and product profitability. And because Artificial Intelligence (AI) and machine learning streamline financial analysis, these will further drive the growth of this sector.
Technology is a great enabler as video conferencing and virtual meeting software have amply demonstrated in the phase of restrictions imposed to contain the ramifications of the COVID-19 pandemic. At a time when offices were closed down, remote working has kept rotating the wheels of the economy, albeit at a slower pace. Flexibility and cost benefits of remote working will make employees enlist more freelancers in their team than before even after offices reopen. The number of remote workers in EU28 was at 25 million in January 2019, making up EU28’s 10% workforce. That number will spike up.
The 3D Printing fairy tale is coming alive – in brick, mortar, and concrete! Belgium just made history by 3D printing a two-storey house completely on-site – the first such successful endeavour. Cheap houses for everyone may be just round the corner, for 3D printing is no longer limited to sci-fi movies. Developments elsewhere also suggest a rapid forward march for the technology.
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