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AUSTRALIAN AI IMPACT BAROMETER

Measuring AI’s Influence on Australian Commercial Real Estate


Australia’s first data-led view of AI’s impact on industries and commercial real estate, helping clients stay ahead of change and uncover opportunity

Artificial intelligence is rapidly moving beyond experimentation and becoming embedded across the global economy. As this shift accelerates, one of the biggest challenges for businesses is understanding what is real, what is noise, and what it means for future decision-making.

The AI Impact Barometer has been developed to bring clarity to this transition, providing a structured way to track how AI is influencing economic activity and, in turn, the built environment.

By focusing on measurable signals rather than speculation, the AI Impact Barometer helps investors and occupiers interpret change with greater confidence. It represents the first phase of a broader research initiative focused on understanding AI’s role in shaping the future of real estate, and will be updated regularly to reflect how trends evolve over time and across markets.

Explore the barometer

How to use the barometer

The Barometer brings together a wide range of indicators to assess how AI is reshaping both the broader Australian economy and property markets.

These indicators are grouped into key themes, including:

  • Adoption of AI technologies across industries
  • Capital investment into AI infrastructure and innovation
  • Shifts in labour markets and skills demand
  • Growth in physical infrastructure such as data centres

Rather than relying on a single metric, the model aggregates these signals into “momentum scores”, highlighting both the direction and intensity of change.

This approach allows users to quickly interpret whether AI is strengthening, stabilising or weakening conditions across different areas of the market. Momentum is categorised across a spectrum, including:

Positive Impact Accelerating

The indicator is rapidly trending in a positive direction for the economy or real estate, with AI advances likely playing a key role driving the trend. For example, data center vacancy rates falling to record lows amid surging AI-compute driven demand.

Positive Impact Gradually Intensifying

The indicator is gradually trending in a positive direction for the economy or real estate, with AI advances likely playing a key role driving the trend. For example, steady improvements in leasing trends for modern, bulk distribution centers that are best equipped for warehouse automation.

Neutral Impact/Holding Steady

The indicator has changed little recently, and AI’s effect is neutral or overshadowed by other factors. For example, employment growth in sectors set to benefit from the AI infrastructure buildout remains flat, as slowing immigration makes open positions in these fields harder to fill. 

Negative Impact Gradually Intensifying

The indicator is gradually trending in a negative direction for the economy or real estate, with AI advances likely playing a key role driving the trend. For example, class B/C office vacancy rates rising slowly as automation reduces back-office employment.  

Destructive/Negative Impact Accelerating

The indicator is rapidly trending in a negative direction for the economy or real estate, with AI advances likely playing a key role driving the trend. For example, employment declining rapidly in white collar sectors vulnerable to automation such as document preparation and call center support. 

measuring momentum

The Barometer focuses on momentum and how indicators are moving over time, rather than attempting to isolate AI’s exact contribution. This framework provides a more practical way to interpret change, particularly in an environment where multiple factors are interacting simultaneously.

SECTION: FROM DATA TO DECISION-MAKING

Turning insight into strategy

The AI Impact Barometer is designed as a practical decision-support tool.

By consolidating complex data into a structured framework, it helps organisations:

  • Identify emerging opportunities linked to AI growth
  • Monitor risks associated with overinvestment or shifting demand
  • Compare performance across sectors
  • Inform portfolio and capital allocation decisions

As AI continues to scale, having a consistent way to track its impact will be critical for long-term strategy.

AI SECTOR FORESIGHT

Showcase the following articles:
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AI Impact on Logistics & Industrial

AI is reshaping the economics of logistics and industrial real estate by reducing uncertainty and making networks more dynamic.
Richard Pickering • 02/03/2026
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AI Impact on Offices

AI is reshaping the economics of work, with material implications over the next decade.
Richard Pickering • 02/03/2026
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AI Impact on Retail

AI is reshaping retail economics - not just by improving online, but by changing what physical space is for.
Richard Pickering • 02/03/2026

CONNECT WITH OUR EXPERTS

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Dominic Brown

Head of International Research, Global Think Tank
Brisbane, Australia


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Sean Ellison
Sean Ellison

Associate Director, Economics & Forecasting
Sydney, Australia


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Richard Pickering
Richard Pickering

Director of Strategic Foresight & Intelligence
London, United Kingdom


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