Artificial Intelligence is reshaping the world as we know it and the impact on office-based companies will be profound. So, what exactly can landlords and occupiers expect in the coming decade? 

It’s a question explored in a new CBRE research report, AI’s Impact on Australian Office, which looks at the potential for AI to revolutionise office design, lower outgoings, accelerate the rollout of smart buildings, shorten commute times, heighten the demand for technology infrastructure and even pave the way for a shorter working week. 

Report author Tom Broderick, CBRE’s Australian Head of Office Research, notes, “Large Language Models (LLMs) like ChatGPT are at the forefront of AI’s practical applications and will reshape how we work in the future. While the long-term effects of AI over the next 20-30 years remain shrouded in uncertainty, the next decade offers a clearer picture.

It will likely be characterised by the maturation and widespread adoption of current AI technologies, which will continue to evolve and integrate into every aspect of our lives.”

A revolution in office design will be one of the spin-offs, automating layout planning and furniture arrangement, while optimising efficiency and comfort. 

“By analysing workplace data, AI can create dynamic 3D models and suggest modifications based on team interactions and space utilisation. This approach will enable real-time adaptation of workspaces, fostering collaboration and productivity, while also predicting future space requirements,” Mr Broderick said.

Lower outgoings will be among the other benefits, with AI expected to streamline cleaning and maintenance by enabling robots to learn and perform tasks autonomously, adapt to new environments and improve efficiency without human intervention.

Mr Broderick said this would be a boon for office landlords and tenants, given that common area cleaning and maintenance currently averaged around 15% of outgoings for prime CBD buildings in Australia, while the cleaning of a tenancy might cost a typical 5,000sqm occupier up to $160,000 per year.

The report also tips an acceleration in the roll-out of smart office buildings, with AI enabling real-time building analytics to optimise energy consumption, enhance security, analyse occupancy patterns, predict maintenance needs, and adjust lighting and HVAC systems for improved environmental impacts.

Higher demand for technology infrastructure is expected to be one of the other AI spinoffs.

“To harness AI’s full potential, companies must invest in top-tier technology infrastructure within their offices. This includes robust computing power, high-speed networks, and advanced security systems to support AI’s complex algorithms and vast data processing needs,” Mr Broderick said.

Shorter commute times and working weeks could also be in the offing.

“Given how productive we will all be with the help of our new AI digital colleagues, companies may continue to look at more employee flexibility.

Australian firms are increasingly exploring the idea of a four-day work week, aiming to enhance employee well-being, productivity, and work-life balance. This will impact on office utilisation, although peak day utilisation, typically from Tuesday to Thursday, may not be impacted as significantly,” Mr Broderick noted.

On the commute front the report tips that AI’s pivotal role in advancing driverless car technology, mitigating traffic congestion and reducing commute times might encourage higher office attention given that employees often cite the commute as a key reason to work from home.

For the Full CBRE research report AI’s Impact on Australian Office

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