Use cases

Here’s how to include qualitative information into a cash flow analysis with ChatGPT. It can come from market reports, transcripts of a video or even a simple conversation. 

Chat GPT is great at visualising spatial financial data!

Using two unprocessed data files Code Interpreter produced this animated heatmap of house prices by area by year in London. Everyone likes a pretty map and now it's easier than ever to make one! 

This is AI-generated investment advice based on 15 market outlook reports for 2024 - over 250 pages of forecasts and analysis from different sources.

Here’s how to develop an AI adoption strategy in real estate using AI assistants (based on latest academic research).

Use AI to add visual/photo data in Real Estate analysis - it improves models of transaction prices, time on market and discounts to listing prices.

We know from research that with good data AI can offer very accurate predictions. Today I show that it can help write simple models. In 30min I was able complete work that would take a junior analyst at least a day. It did not require any technical expertise or coding. I’m adding this to our course on AI for real estate (see link in comments). 

AI can now analyse real estate charts

It turns out that Google's Bard can give you a pretty good analysis of a very specific chart. I took the below figure from AEW Hans Vrensen's report (link below). I uploaded it to Bard and after 5min of me asking it different questions (no additional information or context - just clarifying questions), this is what it said about it...

AI is brilliant at spatial visualisations. I plotted the Natural Hazard Risk per capita for US Counties using ChatGPT Code Interpreter without writing any code.    

Tracking Global Investment Sentiments with AI: Game-Changer for international transactions. We can leverage AI to gauge investor sentiment from multiple countries towards the UK real estate market very quickly. 

ChatGPT will pick the right theoretical model to explain property prices with the data you give it. It will also show where prices are abnormally high/low (according to the model).   

Thi is WHY and HOW you should use ChatGPT for complex financial modelling in Private Equity. After a month of trying, I've managed to get ChatGPT to do nuanced waterfall IRR distributions. 

AI explains and visualises the impact of environmental risk on investment returns in real estate. This time, I’m using New York as an example and use AI to show what a stranded asset actually is in financial terms.

ChatGPT is a game-changer for interactive visualisations of complex spatial economic data with no code and in little time.

ChatGPT can tell you how well a strategy would have performed given actual market events. This provides an easy way to benchmarking track records of strategies even without access to performance data of assets. It is a new way of evaluating an investment advisor/manager/consultant based on the track record of their “narratives” from the past.   

ChatGPT builds custom Automated Valuation Models trained on your own data to your specification and explains how they work. 

ChatGPT developed a real estate portfolio based on risk/return optimisation in around 30min. It calculated the number of assets to buy, found their locations and gave their optimal weights in the portfolio.   

Here’s how you can use AI models, to match an investor to a specific investment property based on the investor’s profile/preference, property characteristics and market data. 

AI takes financial risk analysis to a whole new level. Here's what it can do for you.  

ChatGPT does DCF - discounted cash flow analysis of an office building.

I gave ChatGPT Code Interpreter an assignment I use to teach MSc students cash flow analysis (link below). The results are quite amazing. In much less time than it takes my best students to complete the assignment, Chat GPT gave me something that can easily compete with the top 1-2% of my class.

ChatGPT and Claude 2 are surprisingly good at creating and evaluating real estate investment strategies. AI provides a very useful perspective on the market and it’s something I think decision makers and investment committees should learn to incorporate in their investment process. However, the data/reports you feed AI make a huge difference so there’s still room for personal judgement.   

Here's how to produce a map with ChatGPT in less than 2min. It's hard to say how easy it is to get great results with Gen AI so here's a video. It shows how to make a good-looking interactive map of landmark buildings in the US with no GIS software, coding or specialist knowledge.

This article summarises the impact of Generative Artificial Intelligence on the Real Estate profession by drawing on historical examples of professions being disrupted by technology such accounting and spreadsheets or engineering and Computer Aided Design software.