New Delhi

The Asia Pacific generative AI market is projected to expand at a strong pace in the coming years, with significant economic gains expected across several countries, according to a report by Colliers.

In its report titled AI in Corporate Real Estate, Colliers said the market is likely to grow at a compound annual growth rate of 37.5 per cent between 2024 and 2030. By 2030, generative AI could contribute around USD 76 billion annually to the regional economy, depending on adoption levels and how workers shift to new roles.

The report highlighted that in Japan, generative AI could unlock nearly JPY 148.7 trillion (around USD 1.1 trillion) in productive capacity. Singapore is expected to emerge as a regional leader, with AI adoption potentially delivering economic benefits of up to SGD 198.3 billion (USD 147.6 billion) by 2030.

Singapore ranked highest in the region for AI readiness in the Salesforce AI Readiness Index 2023. Australia, Indonesia, New Zealand and Thailand have also improved their scores since 2021.

On the commercial real estate (CRE) sector, the report said AI’s impact will vary by segment. Sensitive areas such as transaction management may face slower adoption. However, lease administration and facility management are already integrating AI tools.

Regarding jobs, the report noted that AI’s overall effect remains uncertain. While some roles may change, new positions such as AI-enabled property managers, security engineers and ethics experts could emerge.

Colliers outlined five key areas for effective AI implementation: transparency, comprehensive data, governance, adequate data volume and strong data management. Addressing these areas will help organisations use AI responsibly, reduce risks and maximise its benefits across industries.