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India’s corporate real estate sector is rapidly adopting AI, with 91% of companies piloting solutions to optimize office space, reduce costs, and boost efficiency—a leap from under 5% in 2023. While AI trials rise, scaling into daily operations remains challenging due to outdated systems, talent gaps, and lack of clear strategies.

Bengaluru: Artificial Intelligence (AI) has moved from being “interesting” to “urgent” for India’s Corporate Real Estate (CRE) teams, which manage office spaces, workplace operations and location strategy, a new report said on Wednesday.

According to data compiled by JLL, 91 per cent of companies are now piloting AI in office and workplace use cases, a sharp jump from less than 5 per cent in 2023.

The report showed that India Inc is rapidly embracing AI to reduce costs and improve space utilisation.

Ajit Kumar, Managing Director (Work Dynamics Accounts) West Asia at JLL, said AI adoption in India has increased 18 times in just two years.

However, he added that the real challenge now is proving measurable savings and performance improvements.

“Companies that set clear targets, improve data quality and upgrade outdated systems will move ahead, while others may struggle,” Kumar mentioned.

The report said that although AI is being widely tested in Indian workplaces, scaling it into daily operations that actually save money or boost efficiency is proving difficult.

Many companies are experimenting, but systematic and large-scale integration is still a work in progress, as per the report.

The urgency around AI is rising as global firms review their India office strategies and hybrid work policies.

Cost reduction through smarter office space decisions has become a top boardroom priority, with 93 per cent of senior executives ranking it as a key business objective.

By 2030, about 33 per cent of workplace real estate heads are expected to report directly to Chief Technology Officers, compared to 16 per cent currently.

This signals a shift towards running offices as technology-driven platforms rather than static assets.

However, outdated infrastructure remains a big hurdle. The study found that 57 per cent of organisations do not have a clearly defined AI strategy, leading to scattered pilot projects instead of coordinated plans.

Nearly 29 per cent also face talent shortages in technology strategy, which slows down execution.

Dr Samantak Das, Chief Economist and Head of Research and REIS, India at JLL, said many organisations are trying to run advanced AI systems on old and disconnected technology platforms.

He noted that 93 per cent of companies are now allocating budgets to upgrade outdated systems, with 58 per cent treating infrastructure upgrades as a strategic priority.

(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)