Artificial intelligence is poised to transform the world of work, raising questions about which jobs will change and how. A new report from Colliers offers crucial insights into this shift and explains what it means for a major business decision: the office
lease.
A Disconnect Between Awareness and Action
According to a recent Asia Pacific workplace insights report from Colliers, business leaders are fully aware that AI will fundamentally change their workforce. Every single corporate occupier surveyed expected AI to create new, specialised roles requiring different skills and collaboration models. Furthermore, 85% anticipate that AI will lead to fewer roles overall but with greater productivity. However, the report highlights a critical disconnect: while companies see the workforce revolution coming, many have not yet translated these expectations into concrete real estate strategies. The biggest risk for businesses, Colliers notes, is not AI itself, but the failure to plan for its widespread impact on where and how work gets done.
The Human Capital Lens in India
In growth-oriented markets like India and Southeast Asia, the focus is less on reducing office footprints and more on adapting to new talent requirements. For occupiers in these regions, AI's impact is viewed primarily through a human capital lens. Over 40% of respondents ranked the emergence of new AI-driven roles and skills as a top priority. This focus on talent is leading to strong demand for different types of office spaces that can support more project-based and cross-functional teams, a structure that 62% of companies expect to become more common. The idea that AI will lead to widespread office contraction is being challenged; nearly half of the companies surveyed expect AI to drive demand for new and more varied workplace formats.
Quality Over Quantity: The New Office Mandate
If AI automates repetitive, administrative tasks, the purpose of the physical office shifts. It becomes less about housing rows of employees and more about serving as a central hub for high-value activities that AI cannot replicate: innovation, collaboration, and cultural cohesion. Productivity remains the primary mandate for the office, but it is now closely followed by the need to foster teamwork and new ideas. This is prompting a 'flight to quality' as companies seek out modern, tech-enabled, and amenity-rich environments. Occupiers in India, in particular, are showing a strong appetite for upgrading to higher-quality office spaces and reconfiguring layouts, signalling a strategic shift toward value creation over simple cost-cutting.
What This Means for Lease Decisions
The uncertainty surrounding the pace and scale of AI's impact is making long term planning difficult. Many executives report that AI has made it harder to forecast their office space needs even two years out. This uncertainty is directly influencing lease negotiations. While landlords are regaining leverage in some tight markets, the underlying need for flexibility remains a top priority for tenants. The traditional 10 year lease with rigid terms is becoming less practical. Instead, companies are looking for more adaptable lease structures that might include options for contraction, expansion, or early termination. Colliers' own AI powered portfolio management tools are designed to help clients navigate this complexity by identifying cost saving opportunities and optimising lease portfolios in real time.
The Strategic Imperative
Ultimately, the message from Colliers' research is clear : real estate strategy can no longer be siloed from technology and talent strategy . Companies are beginning to align these functions to get a clearer picture of space utilization and create more responsive work environments . The assumption that AI equals less office space appears to be an oversimplification . The reality is more nuanced , pointing toward a need for different , better , and more flexible spaces . As AI job listings skyrocket and talent becomes more concentrated in key tech hubs like Bangalore , having the right kind of office in the right location is a critical competitive advantage . The future of work demands an office that can adapt , and businesses that proactively align their lease decisions with their AI and workforce plans will be best positioned for success .
