The AI Reality Gap: 3 Illusions Costing Real Estate Attorneys
AI is transforming legal work — but most legal AI tools struggle with real estate due diligence.
Why broad legal AI breaks down on title & survey, leases, and complex real estate agreements
The difference between document review vs. document understanding — and why it matters in CRE
The 8 questions every real estate team should ask any AI vendor before buying
Created for commercial real estate attorneys navigating AI adoption — in partnership with the ABA Real Property Section


What you’ll learn in this ebook
AI is flooding the legal market — but in real estate, the difference between a “good demo” and a reliable tool is enormous. This ebook helps you cut through the hype and evaluate AI with a real estate lens.
- The real estate problem AI vendors underestimate
Real estate diligence requires context across documents, not isolated extraction.
- The AI spectrum: generalist vs. broad legal vs. real estate-specific
Understand what each category can (and can’t) do in CRE workflows.
- Why “all legal AI is created equal” is a costly misconception
General legal AI often misinterprets defined terms and key concepts in real estate documents.
- Why document review ≠ document understanding
Real estate attorneys must interpret relationships across commitments, exceptions, surveys, leases, and more.
- Why “technology alone drives transformation” is dangerous
AI should enhance attorney judgment — not replace it.
- A vendor evaluation checklist built specifically for CRE
Eight questions to identify whether a tool is truly purpose-built for real estate work.
The risk isn’t adopting AI — it’s adopting the wrong AI
Investing in the wrong tool can lead to inaccurate outputs, delayed transactions, and reputational damage — forcing attorneys into time-consuming verification work clients won’t pay for.
What’s inside
A practical guide to understanding what legal AI can truly do in commercial real estate — and what it can’t.
- Promise vs. Practice
Why AI underdelivers in real estate workflows
- Illusion 1
All legal AI is created equal
- Illusion 2
Document review equals document understanding
- Illusion 3
Technology alone drives transformation
- Designed for due diligence
what real estate-specific AI must be able to do
- Making the right choice
8 questions to ask your AI vendor
How this helps your practice
Reduce risk
Learn why general legal AI creates blind spots in title, survey, and historical records — and how to avoid liability-driving errors.
Move faster — without sacrificing quality
Understand how real estate-specific AI supports diligence workflows while maintaining precision.
Evaluate AI tools with confidence
Use a CRE-specific vendor checklist to cut through marketing claims and assess real capabilities.
