---
title: What every property manager needs to know about AI’s impact on operations and results
description: Discover how AI is revolutionizing property management, enhancing operations, and driving results. Learn about its essential role in modern management practices.
image: https://blog.irem.org/hubfs/AI-Report.png
---

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 October 6, 2025

# What every property manager needs to know about AI’s impact on operations and results

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Artificial intelligence (AI) is transforming industries across the globe, and property management is no exception. According to AI on the Rise, a new research report from IREM® and AppFolio®, AI adoption![AI-on-the-rise-cover](https://blog.irem.org/hs-fs/hubfs/social-suggested-images/AI-on-the-rise-cover.jpg?width=296&height=320&name=AI-on-the-rise-cover.jpg) among property management professionals has more than doubled in just the past 18 months, signaling a turning point in how real estate management professionals approach operations, efficiency, and innovation.

Between late 2023 and mid-2025, the number of property management professionals using AI tools jumped from 21% to 45%. At the same time, those with no plans to adopt AI dropped from 51% to just 20%.

### From experiment to essential

The findings show that AI is becoming an essential part of modern management practices, especially among larger firms. “Adoption of AI in today’s marketplace is crucial to success,” said Karen Key, CPM®, Division President, Southeast, Asset Living, LLC, AMO®. “AI provides us with ways to enhance our customer service and build efficiencies in our teams. We live in a world where instant gratification has become the norm, and consumers are more loyal to speed than brand.”

Across portfolios, AI is most often used for communication, document analysis, and data analysis, helping property managers streamline reporting, improve response times, and enhance reputation management. AI users, on average, respond to online reviews in less than half the time of non-users and generate reports about an hour faster.

### Leaders driving results

AI is also proving to be a differentiator for companies whose leaders encourage its use. Firms led by AI advocates are 6% more likely to report increased net operating income (NOI) and have a 35% higher unit-to-employee ratio compared to firms that do not promote AI use.

According to James Scott, IREM Innovator-in-Residence and Research Scientist at MIT, “To move beyond encouragement and into strategic AI leadership, companies need robust data systems that enable AI to access, analyze, and act on property and market information. Efficiency gains from AI should be used to invest in growth initiatives, market expansion, or enhanced service offerings rather than simply reducing costs.”

### A learning curve and an opportunity

Even with promising results, many organizations remain in the early stages of AI maturity. The survey found that 62% of current AI users only began using the technology in the past year. Most rely on general-purpose tools like ChatGPT or Microsoft Copilot rather than property-specific AI solutions, signaling significant room for innovation and integration ahead.

IREM and AppFolio’s joint research also highlights the need for training, governance, and change management. As Key noted, “AI doesn’t replace the human element, it supplements it. The right AI allows your company to be responsive 24 hours a day, seven days a week, while giving onsite teams the freedom to focus on the customers in front of them.”

### The path forward

The message is clear: AI is no longer a future concept. It’s a current competitive advantage. Property management leaders who understand how to apply it strategically are already seeing measurable improvements in speed, accuracy, and performance.

Explore the full report for actionable insights and best practices on responsible AI adoption.

[Download the report](https://www.irem.org/file%20library/globalnavigation/learning/tech%20hub/irem-ai-survey-25-fnl.pdf)

 

AppFolio is a Gallery Level Industry Partner of IREM’s and this report was made possible through support from their 2025 Industry Partnership.

### Leave a comment

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