Online Article Interviews Newmark Expert About Impact of A.I. on Back Office

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A newly published Bisnow article titled Will The AI Revolution Kill The Back Office? claims A.I. is on track to greatly reduce the need for expansive back office space over the next 10-15 years  rendering “…many office buildings that are now hubs for back-office operations obsolete and leaving investors stuck with buildings that are difficult to refill,” particularly in regions where manufacturing is concentrated like the Midwest.

The article goes on to explain, “AI’s threat to white-collar jobs isn’t limited to the Rust Belt. Some of the most tech-talent-rich markets in the U.S. are also exposed to job loss due to AI, including San Jose, California, which, earlier this year, KPMG declared it was on the path to eclipse Silicon Valley for having the most tech talent in the country.”

“Tech jobs tend to be concentrated in major metros, and increasingly so. So, if there is going to be dislocation of higher-value functions in finance and insurance and tech, those jobs are predominately in major metros,” Wassmansdorf said. “I think we're starting to see some of those impacts.”

Wassmansdorf said there has been a surge in the number of chief digital officers, whose focus is on digitizing the workplace, in C-suites. And those roles are being found in industries he least expected: insurance, communications and media, and banking.

 Read the full article, Will The A.I. Revolution Kill The Back Office?.

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