Towards Intangible Value Quantification: Scope, Limits & Shortages of Artificial Intelligence applications

Abstract

[EN] The application of Artificial Intelligence (AI) in the realm of economic markets, particularly in the business and real estate sectors, has witnessed substantial growth. However, its effectiveness is curtailed by several limitations, especially in the context of the rising valuation of intangible assets. The intangible nature of assets such as brand value, environmental impact or social impact, among others, presents a challenge for AI, which relies on quantifiable data for analysis and decision-making. The intrinsic volatility and uncertainty of markets, heightened by the intangible asset valuation, further complicate the AI's predictive accuracy and adaptability throughout the time.AI models, primarily dependent on historical data, struggle to accurately forecast market movements influenced by intangible factors, which are often subjective and dynamically changing. This limitation is particularly pronounced in the real estate promotion sector, where the perceived value of properties can be significantly affected by intangible elements like location prestige or architectural uniqueness. Additionally, the ethical implications of AI deployment, such as data privacy concerns and potential biases in algorithmic decision-making, pose further constraints on its application in these sectors. While AI offers transformative potential for economic markets, its current limitations in handling the valuation of intangibles, market volatility, and ethical considerations necessitate a cautious and complementary approach to its integration into business and real estate promotion strategies, specially in the concern of life-cycle approaches.