Influencer:
Here's how to be the best at AI.
Professionals:
I don't want to miss out! Sign me up.
MIT:
Sorry, AI won't give you a sustainable advantage.
Our view:
It's hard to argue that any real estate firm has a sustainable edge.
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A YouTube video titled "How to Use Claude Cowork Better Than 99% of People" has received more than 150,000 views over the last two weeks.
That's a lot of people on the forefront of AI, chasing the latest advancements in the pursuit of edge.
So maybe this MIT article has a point?
Article summary:
"Artificial intelligence does not change anything about the fundamental nature of sustained competitive advantage when its use is pervasive. Once AI’s use is ubiquitous, it will transform economies and lift markets as a whole, but it will not uniquely benefit any single company. Businesses seeking to gain an innovation edge over rivals will need to focus their efforts on cultivating creativity among their employees."
Bringing it back to real estate, we've spent a lot of time over the last six months reviewing investment manager performance reported to pension funds, and it seems difficult to reasonably argue that any investment manager has sustainable special sauce when it comes to returns.
Hard to imagine AI not being able to exacerbate differences in a world with no strong headwinds or tailwinds.
But it's also hard to argue against MIT's point that creativity and passion (we would add judgment) will be the primary drivers of 'edge' in the emerging new world.
Where do you see ‘edge’?
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