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You haven’t been able to attend a multifamily event over the last several years without getting a steady dose of AI talking points on stage, in the expo hall, and in marketing materials. If you took everyone at face value, you’d expect the industry at large to be confident and assured in their AI deployment strategies. Our research, however, uncovered a different trend: the “confidence gap” in multifamily AI adoption is real, and potentially very expensive.
When we surveyed 250+ multifamily executives about their AI adoption strategies for our “The State of Multifamily AI” report, we uncovered a fascinating paradox: while 57% believe they're keeping pace with or outpacing their competitors, 32% simultaneously believe their peers are adopting AI faster than they are. Someone's math doesn't add up.
When we have 77% of respondents reporting that they are already seeing moderate to significant cost reductions from AI, and 30% stating they have already lost business opportunities to AI-enabled competitors, that mathematical impossibility has real financial consequences—let’s dig a little deeper.
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Data and Confidence Levels Tell a Different Story
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Here's what we actually found when we dug into the numbers:
On AI deployment:
- 76% of operators are already at pilot stage or beyond with AI implementation
- 68% have integrated AI into their core business systems
- 71% are increasing their AI budgets year-over-year
On competitive impact:
- 75% see competitors actively marketing their AI capabilities to win new business
- 58% are very concerned or already taking action about competitive pace
- 67% believe early adopters will secure a permanent competitive advantage
On operational results:
- 85% report improved resident satisfaction scores from AI
- 76% see faster maintenance resolution times
- 85% improved lead-to-lease conversion rates
The disconnect? Most operators believe they're running in front. But statistically, that can't be true for everyone. How do we separate the leaders from the laggards? We don’t have a crystal ball (unfortunately), but we do have three simple questions you can ask to start thinking about how you rank next to your peers.
Three Questions Every Executive Should Ask
As you evaluate your own AI strategy heading into 2026, consider these questions:
1. Are you measuring the right indicators?
It's easy to feel ahead of the curve if you've deployed AI anywhere in your operations, whether it be for leasing, maintenance, or resident services. But are you tracking whether it's actually improving conversion rates? Reducing operating expenses? Improving resident satisfaction scores in measurable ways?
We’re well acquainted with sifting through pre and post-AI performance data to ascertain the impact of AI on our customers’ operations. It isn’t always easy to separate the noise from the outcomes, but we have it down to a science, and we’re always happy to help operators understand what “good” AI usage looks like.
Speaking of knowing what “good” looks like…
2. Do you know what "behind" actually looks like?
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72% of executives are moderately or very concerned that slow AI adoption could negatively impact NOI within two years. Of those, 16% say they're already seeing that impact.
The cost of falling behind is no longer hypothetical. ALN data shows EliseAI-enabled operators outperform market occupancy rates by 2% on average, while Grace Hill data shows EliseAI-enabled operators drive a +7.1% increase in resident perception of value for rent. How do these competitive gaps show up anecdotally? It’s those lost leasing opportunities when prospects reach out after hours and your AI-enabled competitors book them for a tour before your leasing team checks their email in the morning. It appears in higher operating expenses you’re incurring while your competitors deliver better service with AI supporting leaner teams. It manifests in lower resident satisfaction scores when your communities can't match the responsiveness renters have come to expect.
The problem often starts at the top.
3. Is your leadership team aligned on AI's strategic importance?
While 69% of respondents say their leadership is very or fully committed to AI adoption, 50% also agree that most multifamily executives are underestimating AI's impact.
This suggests a split in the industry: those treating AI as strategic imperative versus those treating it as incremental improvement. The former group is building multi-year roadmaps and dedicated budgets, expecting AI to fundamentally reshape the way they deliver service to their residents. They’re creating always-on, connected resident experiences that give the people who call their communities home unprecedented insights into every aspect of their living experience. They’re automating top-of-funnel leasing operations where speed to the prospect wins.
The latter camp is improving their operating efficiency by dipping their toes in, but they aren’t necessarily considering the fundamental change this technology is ushering in. In the “on-demand economy,” it’s important to give your teams time to deliver in high impact areas rather than burning out on high volume, low return tasks.
Are You Ahead of the Curve?
The honest answer requires looking at more than whether you've deployed AI somewhere in your operations. It requires understanding:
- Where AI fits in your strategic plan (if at all)
- Whether you're seeing measurable performance improvements
- Whether you're piloting AI or integrating it into your portfolio
Our full State of AI in Multifamily report breaks down exactly where the industry stands on each of these dimensions,complete with benchmarking data you can use to honestly assess your position. Key takeaway? In a market where the competitive moat between AI-enabled operators and the “old school” is widening every quarter, the opportunity cost of missing out grows larger every single day.
Download the full State of AI in Multifamily report to see the complete findings from our survey of 250+ multifamily executives.