Sammy Pahal of the UK PropTech Association on bridging the AI readiness gap

Sammy Pahal is managing director of the UK PropTech Association, part of Real Estate:UK

When I speak to our members about what excites or concerns them about AI, it’s no surprise that we have both optimists and sceptics. Our members – passionate, knowledgeable innovators – don’t doubt AI’s potential. One even likened it to electricity. What they question is whether real estate and proptech businesses are prepared, and importantly have the know-how, to realise that potential.

What are members excited about? They see enormous opportunities to improve productivity, customer experiences and decision-making. In student accommodation, for example, one highlighted how AI-enabled enquiry management can improve booking conversions through faster responses and more consistent follow-up, without necessarily increasing marketing spend. It reminds us that the opportunity isn’t just efficiency but solving commercial challenges.

Meanwhile, some proptech businesses are already connecting their platforms to clients’ enterprise AI tools, such as Copilot and Claude, through the model context protocol. This enables specialist data to be combined with wider business context, creating rich insights.

Perhaps the biggest worry is that ambition and readiness aren’t keeping pace with technology

There is also optimism about a new generation entering the workforce with greater AI fluency. We’ve seen technology reshape employee expectations before, with remote working being a prime example. But the gap between how AI-native talent expects to work and how many property businesses currently operate is widening. It won’t be long before outdated manual processes become increasingly difficult to justify, not just to attract and retain talent, but to get the best out of people.

In terms of what our members are concerned about, perhaps the biggest worry is that the industry’s ambition and readiness aren’t keeping pace with technology. Much of the adoption remains relatively shallow, focused on drafting emails rather than reimagining business processes.

Members question whether organisations have the knowledge and skills to use AI effectively. Without them, disappointing early experiences risk leading people to dismiss its potential.

Good leadership and strategic thinking are also essential to ensure that we’re asking the right questions, such as: what would a property operator look like if it was designed around AI from the outset? And are we doing enough to attract and develop the talent needed to make that happen?

Then there’s the industry’s long-standing data problem. Members describe AI exposing inconsistent information, from conflicting building policies to outdated property records. This reinforces the importance of the Unique Property Reference Number, alongside the data standards and interoperability that the UK PropTech Association (UKPA) has long championed, including through the

Real Estate Data Foundation. As AI moves from answering questions to being tasked with actions, getting these fundamentals right becomes even more critical.

Competitive edge

As software capabilities become easier and cheaper to develop and AI changes how customers interact with technology, proptech businesses have an opportunity to strengthen their competitive advantage through specialist expertise, trusted data and measurable value.

These tensions came through clearly in a UKPA debate I moderated earlier this year. While 86% of the audience initially saw AI as a catalyst rather than a threat to proptech, opinion was evenly divided by the end. The discussion highlighted both the opportunities for new innovation and the challenges AI presents to established software models, including questions around whether customers will increasingly build solutions themselves or buy from proptech providers.

A recent discussion on what property buyers really want from proptech took this further, raising questions about traditional software pricing and licensing. If AI agents increasingly perform tasks previously undertaken by employees, will per-user licensing remain appropriate? And how will proptech businesses capture the value they create?

So how do we bridge the gap? Realising AI’s potential demands bold leadership, fresh thinking and investment in people, not just technology. As UKPA, now part of Real Estate:UK, we can help bridge the gap between proptech innovators and the wider property industry.

AI could be an extraordinary catalyst for growth, but are we prepared to make the changes and investments needed to realise its potential?

Sammy Pahal is managing director of the UK PropTech Association, part of Real Estate:UK