Bisnow: Inside An $89B Fund Manager’s Use Of AI To Supercharge Returns
Over the past five years, fund manager BGO has completely revamped its investment playbook to put artificial intelligence and data science front and center. Rather than relying solely on traditional metrics and human intuition, BGO developed a proprietary AI-driven model that ranks more than 400 U.S. metropolitan areas by projected performance for different real estate asset types. The model allowed the firm to make bold, contrarian moves — for instance, selling its high-performing Inland Empire industrial portfolio before market cooling became evident.
The AI system doesn’t replace fundamental real estate diligence — the firm still evaluates specific assets, underwrites deals and conducts on-the-ground due diligence. But by removing bias and identifying overlooked growth markets, BGO believes its AI model has become a differentiated competitive edge in generating alpha and managing risk.
