A term frequently used in the tech arena is ‘machine learning’: the ability for a system to automatically learn and improve from experience without being explicitly programmed.

Not to be confused with Artificial Intelligence (AI), one of the better definitions of machine learning is ‘the scientific study of algorithms and statistical models that computer systems use to effectively perform a specific task without using explicit instructions, relying on patterns and inference instead’.

Practically, it is a way to analyse vast amounts of data looking for patterns that could be difficult to find using more traditional data analysis. Some non-property uses include photo recognition – this is how Google and Facebook can guess what is in a photo and label or tag it correctly – and recommendation engines on e-commerce websites, learning what related products are genuinely of interest to customers from vast catalogues.

At Savills, we have adopted machine learning within our own internal data analysis, through our Insight & Data team, which then feeds through to the advice we give to our clients. This could be anything from helping corporates quickly analyse their leased office portfolio and ‘mark it to market’, through to advising retailers on the location and type of their next store.

The increasing levels of accuracy possible with machine learning also open up new business models. Through Savills investment arm, Grosvenor Hill Ventures, we are helping to create more accurate automated residential property valuations, including a judgement on future price growth through fintech start-up Proportunity. 

The very smart team at Proportunity is using this to then provide a loan to help boost the deposit of property purchasers, therefore reducing the amount borrowed through a traditional mortgage.

Machine learning is another example of how innovations in technology can enhance the service we provide to clients around the globe and the power of our people, by streamlining process to enable more time for face-to-face consultancy.

Further information

Read more: The different types of proptech