AI and human insight will go hand in hand to future-proof real estate

The real estate sector faces mounting pressure to meet Environmental, Social, and Governance (ESG) standards as Scotland accelerates toward its net-zero targets.

At the same time, Artificial Intelligence (AI) is emerging alongside it as a transformational tool for automating compliance, forecasting and reporting. But this isn’t a story of disruption, it's one of evolution. It’s not about doing less; it's about doing more of what matters.

From energy performance requirements to sustainability-linked finance, ESG has become integral to the legal frameworks around how assets are now traded, financed, and occupied.

Enter AI to help navigate this complexity by working in partnership to process large volumes of data from leases, planning documents, and operational records to support ESG reporting and futureproofing. This allows professionals to focus on analysis and strategic interpretation. AI can highlight patterns whilst professionals provide the necessary context and judgement around those patterns.

AI tools can scan contracts for ESG-related clauses, but they don’t understand nuance. For example, AI can play a valuable role in modernising lease provisions to reflect ESG priorities by reviewing service charge clauses and benchmarking them against green lease precedents. That insight can then be used to tailor amendments that align with current requirements and more aspirational targets.

Drafting and negotiating those clauses requires human insight, particularly when balancing the regulatory picture with commercial reality. What results from this partnership is a more future-proof lease where AI accelerates the process, but the negotiation strategy and client-specific nuance remain firmly in human hands.

Similarly, AI can support circular economy principles around fit-out and waste reduction by analysing lease portfolios to identify clauses that require tenants to remove fixtures or fittings at the end of a lease – even when those items are in good condition and could be reused. Supported by this insight, lease terms can be drafted to allow for retention, repurposing, or donation of materials to reduce unnecessary waste and support ESG goals.

AI can also help track the lifecycle of building components, flagging opportunities for reuse across a landlord’s portfolio. It’s a clear example of how technology and legal strategy can work together to future-proof and embed sustainability across portfolios.

Looking ahead, the possibilities are exciting and Scotland’s legal and property sectors have a chance to lead in this space. Embracing AI as a collaborative partner can help shape a smarter, more sustainable future where legal insight and technological innovation go hand in hand. And the benefits don’t stop at compliance, there is growing evidence that ESG compliant buildings can be more profitable attracting higher values, having lower operating costs, and the potential for better rental income. So it pays to be green, and AI can help support the achievement of that.

And yes, this article was written with the help of AI – under close legal supervision, of course. Think of it as a low-cost assistant with a very large memory and boundless enthusiasm. What’s not to like?

Gaelen Doherty is a legal director in DLA Piper’s Real Estate practice, based in Scotland