Artificial Intelligence (AI) has transitioned from being merely “interesting” to a pressing matter for India’s Corporate Real Estate (CRE) teams, responsible for managing office spaces, workplace operations, and location strategies. Data from JLL reveals that 91% of companies are now experimenting with AI in office and workplace scenarios, a significant surge from under 5% in 2023. India Inc is swiftly adopting AI to cut costs and enhance space utilization.
Ajit Kumar, Managing Director (Work Dynamics Accounts) West Asia at JLL, highlighted that AI adoption in India has surged 18 times in just two years. Despite this growth, the primary challenge lies in demonstrating tangible savings and performance enhancements. Kumar emphasized the importance of companies setting clear targets, enhancing data quality, and modernizing outdated systems to stay competitive.
While AI is extensively being tested in Indian workplaces, the report indicates that integrating it into daily operations for actual cost savings and efficiency improvements remains a challenge. Although many companies are experimenting with AI, achieving systematic and large-scale integration is still a work in progress. The urgency surrounding AI is increasing as global firms reassess their India office strategies and hybrid work policies.
Cost reduction through intelligent office space decisions has emerged as a top priority in boardrooms, with 93% of senior executives ranking it as a key business objective. By 2030, approximately 33% of workplace real estate heads are projected to report directly to Chief Technology Officers, a notable increase from the current 16%. This shift signifies a move towards managing offices as technology-driven platforms rather than static assets.
However, outdated infrastructure poses a significant obstacle. The study found that 57% of organizations lack a clearly defined AI strategy, resulting in scattered pilot projects rather than cohesive plans. Additionally, nearly 29% face talent shortages in technology strategy, hampering execution speed. Dr. Samantak Das, Chief Economist and Head of Research and REIS, India at JLL, pointed out that many organizations are attempting to run advanced AI systems on antiquated and disconnected technology platforms.
Ninety-three percent of companies are now allocating budgets to upgrade outdated systems, with 58% considering infrastructure upgrades a strategic priority.
