Business & Investment

CDO Stack: How Advanced Technology Can Help CRE

Over the last two months, I’ve seen how “mass layoff” has impacted clients’ operations in the real estate industry, and how technology can help companies address the challenges they face today. I pointed out.

John Dangero

Specifically, these challenges are related to above-average turnover rates as workers increasingly reject the types of manual, low-value repetitive tasks that workers have long fueled the process. I think we’re at a turning point where digital transformation is becoming more prevalent as the industry modernizes and catches up, but we’re also seeing how robotic process automation and machine learning can provide short-term relief.

He explained that RPA is at the simple end of the automated spectrum, a step beyond macros, and artificial intelligence on the other side. ML is located in the middle of this spectrum. We hope that ML will help improve real estate automation, accumulate deep expertise, and harness those who have sharpened their instincts.

ML is described in the form of cognitive automation, often summarized as RPA, and cognitive engagement, often referred to as the form of AI.

Think of ML in the form of cognitive automation as a pure form of machine learning. A good example of this is the document abstraction, especially the lease abstraction. In this case, the application designed to perform the lease abstraction does three things. First, the application uses OCR (Optical Character Recognition) to “read” an electronic document. It then scans what you read to recognize words and data in a particular structure or sequence and uses what you “discover” to fill in the blanks in the structured lease abstract form. Third, it emphasizes the abstracted content, along with a link to the location in the document where the data was found, along with the confidence that the data was retrieved correctly.

The more sophisticated your application, the more rules you can use right away, and the more you can “run correctly” in the first pass. Regardless of the sophistication and completeness of the ruleset (and where machine learning comes in), applications can initially miss language terms and nuances and misunderstand their meaning. However, the problem is resolved, even though it indicates unreliability. As people review, accept, modify, and adjust, these edits are captured as additional rules that the application “learns” and incorporates into future summaries.

A common statement from anyone who has adopted and used a document abstraction tool (lease or debt in general) is that it can look frustrating and useless at first. Many people stop at this point in the “experiment”. This is because it looks pointless or it’s easier to stick to the manual process. However, those who stick to it often describe the pace at which an application improves as “scary.” This is especially true if the lender has a standardized lease document (usually) and learning can be applied more easily. Like RPA, applications don’t get tired, bored, or have a bad day. RPA is ruthless about applying the rules taught and wants to keep learning and remember what it has learned.

I’ve experimented, but I’d like to challenge someone who gave up and started over. But this time, let’s be patient and have a patient mindset. And I would like to challenge those who have heard that it is “not there yet” to make sure it is there for themselves. It promises a three-quarter-quarter reduction in total abstraction time and a significant improvement in accuracy and cannot be ignored. Next month, once again when discussing how cognitive engagement and advanced predictive analysis can be combined with human experience and expertise to become better investors, owners and operators. please confirm.

John Dangero Deloitte’s Managing Director and the company’s real estate solution leader, he designs solutions that address client challenges and advance the industry. With over 33 years of experience as a management consultant in the global real estate industry, D’Angelo has helped real estate giants leverage technology and use data to optimize and transform their operations.

Read the December 2021 issue of CPE.

CDO Stack: How Advanced Technology Can Help CRE CDO Stack: How Advanced Technology Can Help CRE

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