Will AI adoption shrink office space? Asia-Pacific firms are on the fence in survey
Nearly one-fifth of surveyed companies in the Asia-Pacific region believe wider adoption of artificial intelligence will reduce their real estate needs, a new study by CBRE has found. More than half – 56 per cent – held a neutral view, believing either that AI had no impact on office space demand or that it was too early to determine its effect, according to the property consultancy’s poll of…
Nearly one-fifth of corporate real estate executives surveyed in the Asia-Pacific region believe that artificial intelligence adoption will lead to a reduction in office space requirements, according to a study conducted by CBRE. A majority, 56%, are neutral on the matter, stating that AI's impact on office space demand is uncertain or too premature to determine.
The remaining 25% of respondents indicated that AI adoption would necessitate an expansion of office space. The study, which polled corporate real estate executives in nine markets, including Hong Kong, mainland China, Singapore, Japan, Australia, and India, received 651 responses. The results imply that AI's current impact is more significant on operational aspects than on real estate requirements.
Ada Choi, CBRE's head of research for Asia-Pacific, stated that while there is speculation that AI could decrease office demand, most organizations are still in the early stages of assessing its impact. Tom Gaffney, CBRE's head of leasing for Asia-Pacific, noted that as companies rebalance their office portfolios, future growth will be concentrated in higher-quality workplaces, while lower-value space is rationalized.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
