Author: Marder Properties, 25 August 2026,
Newsletter: Latest News

AI in Commercial & Industrial Property: Opportunity or Legal Risk?

Artificial intelligence is rapidly changing the way businesses operate, and the commercial and industrial property sector is no exception. From creating marketing content and analysing property data to assisting with administration, research and client communication, AI can offer significant opportunities to property professionals.

But as its use increases, an important question needs to be asked: where does innovation end and legal responsibility begin?

South Africa does not currently have a dedicated AI Act. The country's approach to AI regulation is still developing, with government working towards a broader policy framework. A draft National AI Policy published in 2026 was subsequently withdrawn to allow further work on the policy and national standards for the ethical use of AI.

This does not mean businesses can use AI without considering the law. Existing legislation and legal obligations can still apply to information and decisions involving AI.

How Can AI Benefit Commercial & Industrial Property?

AI can already assist property businesses in a number of areas. It can help analyse market information, summarise documents, generate marketing material, identify trends, assist with customer enquiries and improve administrative processes.

For commercial and industrial property, AI could also assist with analysing factors such as rental trends, property specifications, location data and market activity. Used correctly, these tools can save time and allow property professionals to focus more attention on clients and transactions.

However, AI should be viewed as a tool rather than a replacement for professional judgement.

Where Do the Risks Come In?

One of the biggest concerns is accuracy. AI systems can produce information that appears convincing but is incorrect, incomplete or based on outdated information. In property, this could create serious problems if AI-generated information is used in a listing, valuation, lease, sale agreement or advice given to a client without being checked.

There are also important privacy considerations. Property businesses routinely handle personal information belonging to buyers, sellers, landlords, tenants and other stakeholders. The Protection of Personal Information Act (POPIA) regulates the processing of personal information, and organisations must consider how personal information is collected, stored, shared and processed when using AI tools.

This means businesses should think carefully before uploading confidential client information, identification documents, financial information, contracts or other sensitive material into an AI platform.

What About AI-Generated Property Marketing?

AI can be extremely useful for creating property descriptions, social media content and marketing concepts. However, the information ultimately published remains the responsibility of the property professional or business.

An AI tool should not be relied upon to independently confirm a property's size, zoning, rental rate, features, accessibility or legal status. Those details should always be checked against the relevant source documents and information supplied by the property owner.

A polished AI-generated description is still a problem if the underlying information is wrong.

The Human Element Still Matters

South Africa's developing AI policy approach emphasises responsible, ethical and human-centred deployment of AI, recognising that different industries may require different approaches.

For the property industry, this means finding the right balance. AI can improve efficiency, but important decisions involving property transactions, contracts, client information and legal obligations should continue to receive appropriate human oversight.

The recent controversy surrounding South Africa's withdrawn draft AI Policy also highlighted an important lesson: AI-generated information must be checked and verified by people before it is relied upon.

The Future of AI in Property

AI is unlikely to disappear from the commercial and industrial property industry. In fact, its role is likely to expand as businesses look for faster, smarter and more efficient ways of working.

The opportunity is significant—but so is the responsibility.

For property professionals, the goal should not be to avoid AI, but to use it responsibly. Verify information, protect client data, understand the limitations of the technology and ensure that important decisions remain subject to appropriate professional oversight.

At Marder Properties, we believe technology should enhance the way we work—not replace the experience, knowledge and relationships that remain at the heart of commercial and industrial property.

The key takeaway: AI can be a powerful property tool, but the responsibility for the information, decisions and services provided still rests with the people and businesses using it.