Across commercial real estate, AI tools are becoming a regular part of the due diligence process. At I.CON East this week in New Jersey, a panel on AI and proptech in due diligence emphasized the opportunities for using AI to enhance workflows while still recognizing situations when human judgment and reasoning are essential.
Tim Oberwenger, senior vice president of sales at Stewart Title Guaranty Company, moderated the discussion with industry experts who addressed legal challenges, due diligence and the importance of thoughtfully embracing AI.
Effective Uses of AI in Due Diligence
Due diligence in CRE involves environmental reviews, zoning analysis, lease abstraction and document management. AI can significantly reduce the time needed to complete these tasks by automating processes like lease prescreening and identifying relevant zoning regulations.
Panelists highlighted how tools like ChatGPT, Claude or Grok can be used to analyze datasets and detect potential project sites. When asked “Which parts of the CRE due diligence workflow [can] get automated away?” Peter Millar, executive managing director at Cushman and Wakefield, shared, “I think [it’s the ability] to go through and look at a large volume of data, [a] large number of properties and determine which ones need that deeper dive, that deeper look.” These tools can help prioritize projects by suggesting where to focus your energy, and where you may want to be more cautious.
In addition to AI chatbots, specialized AI platforms have been developed to provide users with established, verified data libraries. Matthew Player, founder and CEO of Zoneomics, explained that his platform provides a comprehensive zoning knowledge base. By using AI to aggregate and map zoning data in advance, Zoneomics reduces the need to verify data and delivers actionable outputs.
When Do We Need a Human?
After using AI to collect and review environmental data, it is essential to have a human review and verify the findings and make final decisions.
While drone footage and camera glasses like Meta’s can provide valuable information and capture extensive site data, they cannot replace on-the-ground field work. Millar emphasized, “Without looking at it, without touching it, feeling it, walking through the property, you’re going to miss bits of deferred maintenance. They’re not going to come through in photos. They’re not going to come through Google Earth. They’re not going to come through drone imagery.”
A physical inspection allows for the identification of subtle site conditions that these technologies can miss, such as soil instability, drainage patterns, environmental hazards and the broader context of surrounding properties.
Building Client Trust in AI
Inga Caldwell, partner at Cole Schotz P.C., noted that her firm has started addressing AI use directly in their client agreements. “In our retainer letter, we have language about the use at our firm of artificial intelligence,” she explained. This transparency often prompts clients to review terms more carefully than they typically would.
However, Caldwell observed that this initial concern typically fades over time. As clients become more familiar with how AI is being used and observe the efficiencies it provides, they become more comfortable.
Caldwell also noted that the term “artificial intelligence” was coined in the 1950s, and while we have come a long way from that decade, there is still much ahead. She compared this to the world wide web, as a “sort of a utopian notion of … freeing mankind to do bigger and better and more important things.” This perspective remains relevant today as AI continues to shape how we work and how it is used within the human experience.
Concern for the Next Generation of CRE Professionals
If you’ve participated in training on using AI in commercial real estate, you’ve likely heard the advice to prompt an AI tool as if it were a junior analyst. While this approach can be effective, panelists raised concerns about the potential long-term impact on talent development.
Millar discussed that this model may inadvertently be hurting the field by limiting the opportunities for early-career professionals to build critical skills and expertise. The “grunt work” that AI can now automate has traditionally served as training. Millar emphasized “without learning those skills, you can’t become a good senior project manager, let alone a reviewer of the work.”
Panelists emphasized that this shift presents a challenge for firms as they think about developing the next generation of CRE professionals.
Building Trust in AI Use in CRE
To close the session, Oberwenger shared a story from about 20 years ago while holding up a pair of wired headphones. He recalled a friend asking, “What’s with all these earbuds? Don’t you people have thoughts?” The remark mirrors concerns that many have about AI today.
The panel concluded that these tools are not meant to replace human thinking, but to support and enhance it. Just as listening to music through headphones can deepen focus or improve an experience, AI can strengthen how we work and think. When used thoughtfully, it enables better insights, more efficient processes and ultimately more effective results.
This post is brought to you by JLL, the social media and conference blog sponsor of NAIOP’s I.CON East 2026. Learn more about JLL at www.us.jll.com or www.jll.ca.
