Regulation the main barrier to tech innovation, says DWF report

Legal and regulatory concerns around implementing new technology are holding back real estate businesses from driving innovation, according to a new report by law firm DWF. Almost half (45%) of the 375 senior decision-makers from global real estate businesses surveyed said that they were unclear or worried about the legal/regulatory implications of new technology, admitting that this was their biggest obstacle to implementing new tech within their business. Cyber security fears (43%) and a lack of available data (42%) also featured prominently as barriers to technology implementation in the Techtonic Shift in Real Estate report, for which DWF surveyed decision-makers from businesses in the UK, the USA, China, Australia and Germany. In addition, 62% of larger businesses – those with revenue of £1bn or more – cite lack of data as an obstacle. However, DWF found that financial investment into innovative technology is set to grow substantially in the next 12 months, with 35% of companies intending to spend more than a quarter of their IT budget on new technology innovations in 2020, up from just 12% in 2019. More than half of respondents to the survey (55%) said that implementing new technology within their business is a key enabler for growth that will lead to better decision-making, with 45% highlighting artificial intelligence and machine learning as their greatest enabler to growth. Melanie Williams, partner and global head of the real estate sector at DWF, said: “It’s clear from our new report that the industry is at a tipping point when it comes to adopting new technologies. While technology brings a host of new opportunities to the real estate sector, it also comes with concerns and challenges which, through a thorough approach to risk, can be overcome. “Our global survey has uncovered a sector on the brink of positive change. While the real estate sector has been viewed by some as being behind the curve, technology has the potential to transform businesses – whether it is through the use of blockchain to provide increased liquidity and transparency on transactions, or the use of artificial intelligence to allow ever more accurate investment decisions to be made. “Technology is set to shake up the real estate sector, and those businesses which embrace change and invest in new innovation will ensure that they’re one step ahead in driving forward a more digital future.” Click here to view the report. To send feedback, e-mail jess.harrold@egi.co.uk or tweet @estatesgazette