AI has been rapidly taken up in the real estate sector, but only a small percentage of organisations have fully integrated the technology into their operations, according to new data.
More than half of property organisations have implemented or are operating artificial intelligence (AI) systems, but widespread integration in the industry has been lacking, according to data from Yardi and the Property Council of Australia.
The Australian Property Technology in 2026 report showed that, while 55 per cent of property organisations were using AI systems, only 18 per cent said their AI capabilities were stable and growing.
The findings showed that most organisations remained in transition, with many preparing data on AI and trialling the technology rather than committing to it as core infrastructure.
On the other hand, 6 per cent of organisations said they didn’t anticipate using AI or had tried the technology and found no value or believed it was too risky.
The report also showed respondents lacked confidence in the industry’s take-up of AI, with 44 per cent believing Australian real estate was trailing other countries in its adoption.
Property Council director of research, data and intelligence, Chris Wild, said that industry readiness was the issue rather than ambition.
“Skills gaps are widening and cyber risk is rising. In many cases, AI ambition is running ahead of data maturity, systems integration and governance readiness,” he said.
The report also showed that businesses were primarily using AI to boost productivity, rather than strategically using it to inform decisions on capital, portfolio strategy, risk, and customers.
It said that 41 per cent of respondents found that it had increased operational efficiency, while 16 per cent reported that AI had strengthened strategic decision-making.
Respondents noted that the technology was most useful for boosting efficiency in research (24 per cent), general administration (23 per cent), and content creation (19 per cent).
Further, 14 per cent reported that AI had reduced costs with quantifiable savings, and 6 per cent reported that AI had improved customer understanding and satisfaction.
Yardi’s senior regional director, Asia Pacific, Bernie Devine, encouraged businesses to consider ways that AI could add value to their strategic decision-making.
“People keep imagining their businesses with AI added. What they need to do is rethink the equation,” he said.
“AI is not a bolt‑on or a refurbishment. It’s a new design and construct project – a completely new way of solving problems with tools you never had before.”
According to the report, while AI adoption had accelerated, the primary barriers were now no longer tools, cost or vendor support, but internal skills and understanding, as found by 28 per cent of organisations.
However, workplace decisions have not been influenced by the findings, with 88 per cent of respondents reporting either no change to hiring patterns or saying they were still evaluating AI’s impact on roles.
On the other hand, 7 per cent of organisations reported increased demand for AI-focused positions, and five per cent reported reduced hiring due to implementing AI processes.
In light of the findings, the Property Council has urged real estate organisations to consider how AI could genuinely reshape how property is planned, managed and valued.
“We are working with industry to advocate for the skills, systems and safeguards that make AI safe, scalable and effective in real‑world commercial settings,” Wild said.
“What happens next will depend on how decisively our industry chooses to lead, invest and collaborate,” he concluded.
