AI-driven innovations are revolutionising the real estate industry, particularly in logistics and warehouse operations, writes Will O’Donnell, managing director of Prologis Ventures.
As managing director of Prologis Ventures, I’ve had a front-row seat to the technological revolution sweeping through the real estate industry. AI-driven innovations are transforming the market, notably the industrial and logistics sector where we are active, playing a big role in how businesses shape their strategies and develop future plans.
At Prologis, we are constantly seeking ways to enhance our decision-making and stay ahead in competitive markets. AI-powered tools are game-changers in this regard.
Optimising property management
In Europe, we’re already seeing the benefits of AI through our use of SITE Technologies, an AI-powered asset management and analytics platform. This tool has revolutionised our approach to material maintenance and repairs across our European portfolio.
Instead of relying on time-consuming manual inspections, SITE Technologies uses drone imagery and AI models to identify and categorise defects with remarkable accuracy. It provides health scores and insights into hardstanding degradation, enabling more efficient and cost-effective maintenance strategies tailored to the specific needs of each European market.
While we’re making significant progress with SITE Technologies in Europe, we are also excited about the potential of introducing other AI-driven tools to the region. For example, we are integrating TestFit, an AI-driven software, into our US projects. TestFit automates feasibility analysis and site planning, allowing our teams to configure optimised site plans tied to costing engines in minutes instead of days.
Although currently utilised only in the US, we’re exploring opportunities to bring TestFit to our European markets in the future. By inputting site-specific data and financial parameters, we expect to evaluate opportunities quickly and optimise key design and economic considerations across various European countries, each with its unique regulations and market dynamics.
Logistics and warehouse automation
The impact of AI extends beyond property development into the daily operations of our logistics facilities. A prime example is our investment in Gideon, a robotics company using AI to automate forklift operations. Gideon’s autonomous mobile robots, powered by AI and 3D AMR (Autonomous Mobile Robot) technology, are helping our European customers achieve greater operational efficiencies inside their warehouses.
These AI-driven robots can automate complex industrial processes, reducing the need for workers to perform tedious or potentially hazardous tasks. The ability to scale operations up or down based on sudden business changes has proven invaluable, particularly given the volatility of European markets over the past few years.
We’re equally excited about our investment in Archipelago, an AI-driven platform that enhances risk management and property intelligence. By digitising key data for each property in one place, it enables us to extract actionable insights across a range of domains, from roof maintenance and fire protection to occupancy and insured values. As such, it creates a secure environment for risk managers, brokers, and insurers to connect, streamlining the insurance renewal process for commercial properties. This is especially crucial in Europe, where regulatory environments vary significantly across countries.
Sustainability investments
Sustainability is no longer just a buzzword in European real estate - it’s a necessity. With Europe setting ambitious climate goals, we at Prologis are committed to supporting decarbonisation efforts through AI-driven technologies.
One of our investments in this area is Redaptive, a provider of AI-enabled smart-metering technology. Redaptive helps identify and measure the impact of energy upgrades across entire real estate portfolios. This enables us and our customers to accelerate energy and cost savings while meeting sustainability targets - a win-win for business and the environment.
Another critical sustainability investment driving Prologis Mobility’s efforts to accelerate the transition to electric fleets is Synop, an AI-powered platform that helps fleet operators optimise electric vehicle (EV) performance and efficiency. In the US, we’ve already logged over five million miles on the platform, gathering valuable data to improve fleet operations and reduce downtime. By leveraging Synop’s AI-driven insights, we can support our European customers in their EV transitions, ensuring efficient operations, optimised charging schedules, and enhanced site utilisation and energy management—all aligned with their sustainability goals.
Looking ahead
As we continue to navigate the evolving landscape of real estate, particularly in Europe, I am more convinced than ever that AI will play a pivotal role in shaping the future of our industry. From optimising site selection and development to enhancing warehouse operations and promoting sustainability, AI-driven innovations are helping us create more efficient, resilient, and sustainable logistics ecosystems.
At Prologis Ventures, we remain committed to investing in and integrating these cutting-edge technologies – both in the US and across our European operations. By doing so, we’re not just preparing for the future of real estate - we’re actively shaping it, ensuring that both we and our customers stay ahead in Europe’s dynamic and competitive market.
