Pandora's Office: Part IV - Wearable Work
Today, we examine the transformative role of Artificial Intelligence (AI) and automation in the workplace. AI will have broad impacts on work in the information economy, both in how and where work is done. While it's true AI and automation could lead to significant job displacement, it’s also true that AI will create new jobs. Studies suggest that AI will affect job transformation more than destroying jobs, altogether. It automates parts of jobs, not whole jobs. The nature of some roles may change, requiring a focus on skills that AI can't replicate – creativity, critical thinking, emotional intelligence, and complex problem-solving. For those at the top of the food chain, this shift will make jobs more strategic and rewarding, enhancing employee engagement and productivity. Yet jobs at the lower end of the white-collar spectrum will be susceptible to displacement.
In the context of place, as in office space, AI is emerging as a valuable tool for management and optimization. Intelligent systems are being deployed to monitor and analyze occupancy and spatial data, enabling real estate managers to maximize space usage and minimize waste. These systems can also contribute to making office spaces safer and more comfortable, by monitoring environmental parameters and automating adjustments to lighting, temperature, and air quality. Yet just as many CRE managers are becoming aware of specific use data, they find themselves navigating an interesting paradox; namely, those same individuals not using their designated office space are reticent to give it up. In the end, we believe the data will win. Faced with the cold hard facts of wasteful office spend, companies are increasingly shifting space requirements to accommodate the use case, not headcount. The net effect has been profound in terms of the amount of space leased. Consider that pre-pandemic, a company having 100 people in a region would have sought space for 100 people (plus some amount for growth). Today, this same company will look at actual use and craft its strategy, accordingly. It would be typical for this company to find that 30 of its 100 regional employees use the office. Adjusting the space need to solve for 30 vs. 100 results in a 14,000 SF decrease in the amount of space leased, from 20,000 SF to 6,000 SF (assuming 200 SF/employee).
Change has begun to play out across global real estate markets, with evolving demand resulting in less need for large, centralized offices designed to house individual workers. Instead, we’re seeing increased demand for smaller, flexible spaces designed to facilitate collaboration and social interaction. Commercial real estate developers are investing in smart technologies to create adaptive spaces that can cater to the changing needs of businesses. AI will bring to the office product a level of data feedback which is not unlike the revolution in wearable sportswear tech. Wearable buildings.
As companies plan a return to the office, they’re relying on AI to make this transition smoother and safer. Technologies like AI-powered health screening, touchless interfaces, and automated cleaning systems are being implemented to ensure a safe working environment. Moreover, AI tools are helping in managing schedules and coordinating office days for employees in hybrid work models.
Real estate is expensive. Historically, it was more difficult to ascertain the efficacy of this spend. Today, AI is making it easier for corporations to assess the productivity of their real estate spending, resulting in net reductions to the amount of space leased. Employers and employees, alike, must embrace the new realities of hybrid and remote work, of the transparency of data and all that it informs. The physical places we design for work must evolve to serve a new purpose which is less about individual workspace. In the end, AI will make our offices more intentional and purposeful, more valuable.