There are some important distinctions I am discovering between information and wisdom, in commercial real estate decision making and life in general. Both information and wisdom are needed in making optimal decisions, but with so much focus on the large language models of AI, the importance of wisdom, is sometimes overlooked.
AI tools are becoming more and more integrated in the commercial real estate acquisition process, These tools are very powerful when it comes to aggregating and analyzing data. At the same time, the AI’s lack the direct experience and insights that come with negotiating across the table with landlords, sellers and brokers.. And, we all know the AI’s can hallucinate at times, providing a very precise and convincing, yet incorrect solution to a problem.
One way to think about the integration of AI and Wisdom is the functioning of the two hemispheres of the human brain. The left hemisphere of the brain is associated with logical and analytical thinking, which is very important. The right hemisphere, on the other hand, is associated with imagination, creativity and empathy. As humans, we want to access and utilize both hemispheres of the brain. That is what has led to our personal development and the advancement of civilizations.
Like the left hemisphere of brain, AI is equipped to collect, organize and analyze data. However, at least a present time, it lacks the ability to imagine possiblities outside the box and propose novel, creative solutions. In addition, it my lacks the capacity for human to human empathy. For these reasons, in commercial real estate decision making, we are recommend using AI to collect and analyze data, while using seasoned live human minds to bring wisdom and empathy to bear. This approach, we believe, will yield the best decisions, avoiding costly mistakes.