Only 2% of California CRE Pros Have Full Trust in AI To Make Decisions
CRE professionals are not sitting on the sidelines when it comes to AI and have been using it in meaningful ways, especially for research, document review, marketing and workflow support.
But a survey, conducted by both Santa Ana-based First American Data & Analytics and DealGround, showed a clear trust gap, with only 5% expressing enough confidence for the technology to inform real deal decisions, according to Matt Key, vice president of property data at the company.
Among California respondents who work directly in CRE, 69% use AI weekly or daily, slightly above the full direct-CRE sample at 66%. However, only 2% of California direct-CRE respondents say they fully trust AI enough to influence real decisions in the industry.
Respondents also appear more cautious in their use of AI. Nearly a quarter of California participants (24%) say they use the tools for decisions only with heavy verification, compared with 17% overall. Another 19% say they do not trust AI enough to use it meaningfully, compared with 11% nationally.
Tool confusion is also more pronounced. Among California direct-CRE respondents who are not already using AI extensively, 41% note they do not know which tools to use, compared with 34% in the full study. Accuracy accounts for a big concern nationally, while privacy and security concerns are somewhat greater in the Golden State.
The biggest opportunity areas in California are consistent with the broader survey, but underwriting interest is stronger. A third of the state's direct-CRE respondents say replacing manual steps in the transaction or closing process would be the most valuable AI improvement, 26% want more reliable rent or sale comps in thin or opaque markets and 24% want fully automated underwriting.
"Adoption is moving faster than confidence, particularly when AI outputs are tied to real-world decisions," Key told GlobeSt.com in reference to the national numbers.
"This tells us the next phase of AI in CRE will not be defined by the flashiest tools, but by the reliability of the data behind them. In a complex and data-rich market like California, where property dynamics, regulations, and transaction considerations can vary significantly by submarket, the need for accurate, transparent, and current information is especially clear."
For California CRE professionals — and the broader industry — AI will only become more useful as the underlying property data becomes more complete, current, and standardized, Key added.
"The biggest opportunity is helping CRE professionals move from experimentation to confidence — and that starts with trusted data," he said.
AI in CRE is shifting from experimentation to execution, as professionals prioritize tools built on accurate, decision-ready data.
Many holdouts face practical barriers rather than financial ones: 34% aren't sure which tools to use and 32% worry about data accuracy, while only 5% cite cost or ROI.
Source: GlobeSt/ALM