By Brielle Scott
As artificial intelligence continues to reshape industries, commercial real estate leaders are grappling with a critical question: How do we innovate responsibly?
In a special episode on the NAIOP Inside CRE podcast, NAIOP Executive Vice President and Chief Operating Officer Shaine Anderson, CAE, facilitated a conversation with three industry leaders: Carrie Denning Jackson, director of innovation and sustainability at Jamestown; Colin Joynt, senior vice president and chief information officer at BXP; and Will O’Donnell, managing partner at Prologis Ventures. Their discussion on AI adoption in their organizations led to insights on how to balance experimentation with thoughtful oversight.
O’Donnell introduced a compelling framework borrowed from Amazon’s Jeff Bezos: the concept of “two-way door” and “one-way door” decisions. Most technology decisions, he argued, are reversible. If a pilot program fails, you can walk it back, learn and iterate. These are two-way doors. But some decisions – those involving irreversible commitments or significant exposure – are one-way doors and require deeper scrutiny.
This mindset can allow companies to move quickly without being reckless. By treating most AI initiatives as pilot programs, organizations can test hypotheses, gather feedback, and refine their approach without betting the farm. The key is to avoid analysis paralysis. As O’Donnell put it, “Don’t spend three years studying whether to use ChatGPT – create a sandbox and test it.”
Denning Jackson emphasized the importance of fostering a “culture of safety” to support innovation. She estimated her team has over 20 pilot programs currently running, ranging from small-scale experiments to major infrastructure investments. Each pilot is governed by clear guardrails, including monthly reviews with the company’s information security and engineering teams. This ensures transparency, documentation and alignment across departments.
Rather than slowing progress, these systems create clarity and trust. Everyone knows what’s being tested, why it matters, and how risks are being managed. It’s a model that encourages experimentation while protecting the organization from unintended consequences.
Joynt highlighted the evolving role of IT teams in this landscape. No longer just a support function, IT is now a strategic partner in innovation. From tagging and securing data to collaborating with legal and leasing teams, IT helps map the data journey and assess comfort levels with new technologies.
This cross-functional collaboration is essential. Decisions about data usage, privacy and compliance can’t be made in silos. By involving stakeholders early and often, companies can make informed choices that balance innovation with accountability.
In real estate, where blueprints and certainty are the norm, AI adoption requires a shift in mindset. Instead of having all the answers upfront, teams must embrace iterative learning and structured exploration.
By breaking down innovation into manageable questions – starting with whether a technology solves a real business problem – companies can avoid wasting time and resources. If the answer is no, they move on. If it’s yes, they scale thoughtfully.
AI presents enormous potential for commercial real estate, but its adoption must be guided by thoughtful risk management, cross-functional collaboration, and a culture that embraces learning. By treating innovation as a series of reversible steps, supported by clear processes and open communication, companies can unlock the power of AI while staying grounded in responsible decision-making.
