In the ever-evolving landscape of technology in multifamily, staying ahead of the curve is not just advantageous—it's imperative. As we witness the emergence of artificial intelligence (AI) 2.0, widely known as GenAI, organizations are faced with a crucial decision: Continue with a reactive approach to AI adoption or embrace a proactive mindset.
Here are top considerations to making the proactive shift and practical steps for navigating the transition successfully:
The Pitfalls of Reactivity
In the race to adopt the latest technologies, too many organizations in the multifamily industry fall into reactiveness. Instead of proactively seeking out AI solutions that align with their business objectives, they adopt a wait-and-see approach, enabling the competition to make significant strides or for newcomers to use the new tools to disrupt. This reactive approach often leads to rushed implementations, misaligned strategies, and missed opportunities for innovation and in execution.
A Lesson From History
The evolution of mobile devices and the technology needed to support that show the significance of transitioning to a proactive AI approach. In the early days (when the iPhone and the rest were launched), rendering content on mobile devices was treated as an afterthought, with companies scrambling to adapt their existing or even newly built applications for smaller screens—making them “mobile” friendly. However, by embracing mobile-first design principles, organizations began prioritizing mobile usability from the outset, leading to a revolution in user experience. That is, when one started building a new web application or changing an existing one, frameworks/designs were employed so that it worked with mobiles from the get-go.
The Case for AI First Design
Similar to the shift toward mobile-first design, embracing an AI First Design approach has the potential to transform how businesses operate. By prioritizing AI at the forefront of product development and decision-making processes, organizations, especially multifamily companies that are looking to advance fast, can unlock new opportunities for innovation, efficiency, and speed to market to build upon the curated and enriched dataset that the industry has accumulated and is growing on an hourly basis. From streamlining the renter experience and back-end operations to enhancing internal and external user experiences, the possibilities are endless.
Practical Steps for AI First Design Approach
Transitioning to an AI First Design approach may seem challenging or even hard to know where to start, but it is entirely achievable with the right mindset.
1. Find Use Cases
- Define Clear Objectives: Establish clear objectives for AI implementation, focusing on areas where AI can drive tangible value for an organization. Challenge each department to look at problems with AI in mind.
- Call Out (or Make) Constraints: The senior leadership team needs to set/create constraints. Remember from Parkinson’s Law: “Work fits into the time you give it.” Constraints set will lead to more innovation (and more use cases).
- Identify Efficiency Gaps: Challenge departments to identify areas where AI can improve efficiencies at scale, reframing problem-solving discussions around AI instead of traditional automation. Replace the word automation with AI.
2. Iterate on the Use Cases
- Explore AI Tools: Familiarize teams with AI tools and technologies readily available, such as ChatGPT, large language models (LLMs), and large-action models (LAMs), and encourage experimentation and right usage to add to potential use cases. Also, in the case of multifamily, given Gen AI technology has been with us for over 18 months, many enterprise Gen AI tools can be housed on the massive and growing multifamily dataset.
- Foster a Culture of Experimentation: Create an environment where experimentation and rapid iteration are encouraged, collaborating with internal teams or external partners to prototype AI solutions quickly. Do not wait to train your team or train your data (start with use cases that create cash flow, other things will follow). For instance, in typical multifamily operations, the accounting, people, IT, and operations teams can participate in the experimentation and iteration.
- Validate and Iterate: Present prototypes to stakeholders for validation and feedback, iterating based on insights gained and scaling successful solutions to production. Iterate within days—look at enabling partnership, internal or external.
As we stand on the cusp of the AI 2.0 era, the choice between reactivity and proactivity has never been clearer. By embracing an AI First Design approach, organizations, especially multifamily operations, can position themselves as pioneers in the AI landscape, driving innovation, growth, and competitive advantage. The time to act is now, our customers win, so do we —let's embark on this journey toward a smarter, more AI-driven future together.
