11.09.2024Four impacts AI will have on the Australian office workplace 

Artificial Intelligence (AI) is rapidly changing the way humans live and work. These are the biggest impacts it will have on the office workplace.

 

This article was originally published by Committee for Melbourne member CBRE.

AI is rapidly changing the way humans live and navigate the world. With the average person spending approximately 90,000 hours of their lifetime at the workplace, it’s crucial to zero in on AI’s impact on one definitive area – the office.

CBRE’s new research report, AI’s Impact on Australian Office, aims to highlight these impacts in detail with analysis and commentary from Tom Broderick, CBRE’s Head of Office & Capital Markets Research in Australia.

Whether it’s Microsoft’s Copilot or OpenAI’s ChatGPT, Mr Broderick, says that these Large Language Models (LLMs) are now at the forefront of AI’s practical applications in the workplace.

“It will reshape how we work in the future. While the long-term effects of AI over the next 20 to 30 years remain shrouded in uncertainty, the next decade offers a clearer picture. It will likely be characterised by the maturation and widespread adoption of current AI technologies, which will continue to evolve and integrate into every aspect of our lives.”

Here’s where AI is also impacting the office workplace.

Office design

AI will drive a revolution in office design through the automation of layout planning and furniture arrangement, a move which will contribute to optimised efficiency and comfort.

“By analysing workplace data, AI can create dynamic 3D models and suggest modifications based on team interactions and space utilisation,” Mr Broderick explains.

“This approach will enable real-time adaptation of workspaces, fostering collaboration and productivity, while also predicting future space requirements.”

Lower outgoings

Outgoings are a major cost for tenants. The positive outlook is that AI is expected to lower these outgoings through the streamlining of cleaning and maintenance in workplaces. This can occur through enabling robots to learn and perform tasks autonomously, as they adapt to new environments and improve efficiency in the absence of human intervention.

Mr Broderick says that this AI benefit is a win for office landlords and tenants, especially given that common area cleaning and maintenance currently averages around 15 per cent of outgoings for prime CBD buildings in Australia. This is in addition to cleaning of a tenancy which can cost a typical 5,000sqm occupier up to $160,000 per year.

Rise of smart office buildings

Our comprehensive guide to smart buildings defines the term as a building that is safer, more comfortable and resilient. Specifically, it’s a building which delivers better user experience for occupants and more sustainable and operation-efficient outcomes for owners throughout its lifecycle. AI is tipped to accelerate the roll out of smart office buildings through the enablement of real-time building analytics to optimise energy consumption, enhance security, analyse occupancy patterns, predict maintenance needs, and adjust lighting and HVAC systems for improved environmental impacts.

Higher demand for technology infrastructure is also expected to originate from the proliferation of AI in buildings.

“To harness AI’s full potential, companies must invest in top-tier technology infrastructure within their offices,” says Mr Broderick. “This includes robust computing power, high-speed networks, and advanced security systems to support AI’s complex algorithms and vast data processing needs.”

Shorter commute times and working weeks

AI isn’t just making an impact within the physical walls of the office. Mr Broderick says that shorter commute times and working weeks could also arise as a result of AI’s influence on conventional work practices.

“Given how productive we will all be with the help of our new AI digital colleagues, companies may continue to look at more employee flexibility. Australian firms are increasingly exploring the idea of a four-day work week, aiming to enhance employee well-being, productivity, and work-life balance. This will impact on office utilisation, although peak day utilisation, typically from Tuesday to Thursday, may not be impacted as significantly.”

When it came to commuting to work, the report highlighted AI’s role in supporting advanced driverless car technology. This technology could in turn help alleviate traffic congestion while reducing overall commute times. The benefit of this? Shorter commute times could convince more employees back into the office, as long commute times have been a key reason that workers have opted to work from home.

Want to know AI’s impact on specific office-based industries? Find out in the report.