D
ealpath’s latest survey of 100 institutional real‑estate investors—each managing over $500 million—shows a sharp uptick in AI enthusiasm, yet a persistent gap between intent and execution. Ninety‑six percent of respondents plan to boost AI spending, and 90 percent already have or are building AI teams, but 93 percent cite major obstacles. The most common hurdles are a shortage of internal expertise (43 %), regulatory and compliance worries (42 %), budget limits (39 %), and fragmented data across platforms (36 %).
The findings reveal a disconnect: while the sector is eager to deploy AI, many firms lack the infrastructure and skills to do so effectively. “We wanted to see where the market stands in its AI journey,” said Ursula Sage, Dealpath’s senior director of product and design. “The survey shows that investors are thinking about AI, but they’re also flagging the barriers that need to be addressed so we can build solutions that make adoption smoother and deliver real value.”
Key takeaways include:
* 100 % of respondents are either using or planning to use AI.
* Fragmented data across multiple systems slows readiness.
* 36 % are scaling AI solutions, 13 % are piloting custom tools, and 43 % already use generative models such as ChatGPT, Copilot or Claude for routine tasks.
* A data‑infrastructure push is underway: 98 % view improving data systems for AI as a top priority for the next two years, and 74 % have AI governance policies in place.
* Leading AI applications are document analysis (67 %), portfolio monitoring (61 %), investment memo creation (56 %), and information extraction from offering memoranda/flyers (49 %).
* 96 % intend to increase AI investment within a year, and 68 % consider AI essential to long‑term strategy.
* Expected ROI focuses on faster deal evaluation and closing (61 %), higher efficiency (61 %), more accurate underwriting (50 %), and increased deal velocity (43 %).
Dealpath commissioned the survey after observing a shift in executive attitudes toward AI over the past year. Earlier skepticism—especially about accuracy—has given way to a more optimistic stance, with many firms accelerating funding and setting mandates. “The change began in early 2025,” Sage noted. “Executives are now saying ‘let’s invest more,’ but they still face significant headwinds.”
Dealpath, an AI‑powered investment‑management platform used by over 300 institutional firms, has facilitated more than $10 trillion in transactions for major players such as Blackstone, Nuveen, CBRE Investment Management, MetLife, and UBS. While the ROI of AI remains an open question for many, the consensus is that investment is unavoidable. “Investors understand that AI will drive a big change and must be integrated sooner rather than later,” Sage said.
Despite enthusiasm, concerns linger around underwriting accuracy. “AI still struggles with numbers and can hallucinate,” she explained. “That’s why firms are cautious, even as they invest in screening, intake, and initial deal analysis features.”
The survey also highlighted that larger institutions are ahead of smaller ones in AI adoption—a surprise to Sage, who expected nimble, tech‑savvy firms to lead. “Real estate has historically lagged in cloud adoption, but AI is different,” she said. “Large investors are all‑in because they see the stakes and the potential benefits.”
Key barriers are being addressed: AI expertise is growing, budget constraints are easing thanks to lower‑cost tools, and compliance frameworks are emerging. “Partnering with the right service providers will be crucial,” Sage added.
Contact: Philip Russo, [email protected].
