A code to crack AI adoption in BTR

Our aim as a membership body is to ensure the rental living sector takes a responsible approach as it benefits from changes brought about by the technology.

The ARL has also led the creation of a Code of Practice for the rental living sector over the past two years, because we believe there is a need to build trust with government and consumers. This code, which has now been adopted and taken forward by the BTR Alliance, will set standards for the responsible use and application of AI in rental living.

The vast majority of people in our sector are looking to get into AI and there is a lot of work going on to try to understand what it can do, but we know it is only going to get bigger and bigger in terms of use.

Members are looking at how AI can deliver efficiency, hyper-flexibility, hyper-personalisation and automation through chatbots. If you apply AI to energy use properly, you can get up to 20% savings, while the use of predictive AI on maintenance could probably save 20% to 30% of your costs over time.

To date, the construction industry generally – and the residential sector particularly – has not given enough consideration to the operational requirements of buildings. Instead, it has focused on constructing buildings on time, to budget and to an acceptable quality. The Building Safety Act, among other things, forces us to consider the occupation phase as critical.

However, if you look at the 80-year lifespan of any building, whether it be a commercial office, a residential building or anything else, that is where the real issues are – and that is where the use of AI is going to play out.

If we’re going to be professional and efficient, we’re going to have to use AI. That’s why we launched the ARL AI Strategy for BTR consultation at the end of last year, seeking feedback from our members that will shape the final white paper.

The draft strategy paper is clear that AI users should protect people’s rights to ensure its use is fair, transparent and non-discriminatory. It highlights the potential for the technology to amplify bias or exclusion and gives the example of a tenant being mis-scored on a check due to a biased algorithm, which may wrongly flag them as high risk due to an anomaly related to their credit history.

Grappling with the gremlins

We know there are gremlins out there and they can be manipulated, so my approach is to be unafraid to talk about them. Recognising this and bringing it to our members’ attention means we can reasonably expect them to have tried to mitigate such risks through actions such as human double-checks.

We’ve had some very good feedback and the common theme is that members love the ambition. Where they have concerns is with the need to keep up with the pace of change, keep AI use practical for operators and ensure we are not creating unrealistic burdens.

I see the strategy as a dynamic document that will have to be refreshed every year. Its influence and nuance will shift as we gain a greater understanding of what AI can do.

One of BTR’s dilemmas is how to strike the right balance between the human touch and automation. Anyone who works in retail will tell you that your money comes from the consumer – it doesn’t come from anything else. Even a vending machine needs a human to put the money in.

Ultimately, in BTR, we recognise that the source of revenue is the customer. Happy people give you money – keep them happy and they’ll keep giving you money.

Having a consumer-centric focus and prioritising customer care and the quality of the customer experience in every respect is the best way to protect your revenue, reduce the risk of your investment and get the return you’re looking for.

Ultimately, there is a very sensible business case for using AI correctly and sensibly handling all the issues that come with it.

Brendan Geraghty is chief executive of the Association for Rental Living