Jack Dempsey is Senior Director for Asset Management of Lindahl Reed, Inc., Managing Partner of the Asset Management Partnership and author of the AMP Newsletter, where he advocates that “better asset management leads to better outcomes.” Mike Petrusky asks Jack to share updates on the latest strategies and technologies for maximizing the value of assets in the built environment, and the two explore the impact of artificial intelligence (AI) in asset management, including looking at his belief that it’s a tool for augmenting decision-making rather than replacing jobs. Dempsey explains how asset management is about knowledge and communication and why the current paradigm of managing and maintaining assets as overhead is outdated.
Agenda
- Definition and scope of asset management within an organization
- Role of AI in asset management decision-making through models and scenarios
- Importance of data and communication in successful asset management
- Shift from asset management as just overhead to critical in overall performance
What you need to know: Facility and maintenance takeaways
Takeaway 1: AI is driving change in asset management but won’t replace human decision-making
Dempsey emphasizes that AI isn’t going to steal jobs, but rather augment human expertise.
“AI is going to draw a lot more power. Where’s all that power going? Well, it’s going through computations, big server farms… With AI, we’re empowered to evaluate different courses of events and analyze different probability curves.”
Dempsey’s prediction: AI in asset management evolves to involve more complex decision-making models, like a computer game where the player has multiple scenarios to choose from and can shape their own adventure.
So, he encourages professionals in the field to understand the capabilities of AI in forecasting performance and to incorporate their knowledge into the technology’s thought processes.
Takeaway 2: Asset management is moving away from being seen as an overhead to becoming an essential aspect of an organization’s performance
The perception of asset management as an overhead cost that organizations should constantly look for ways to cut is outdated. Instead, asset management is a crucial part of an organization’s overall performance.
“I think the maturing understanding of asset management as a standards-based approach is pushing that agenda on executives, letting them know that you’re actually accountable and responsible for the performance of your organization, to include how the assets, facility, assets, and equipment are supporting those outcomes,” explains Dempsey.
He advises facility and maintenance professionals to focus on getting data right and understanding how technology is forecasting performance. They also need to participate in the process and incorporate their knowledge into the technology’s thought processes as it continues to evolve.
Takeaway 3: Adopting a disciplined approach to asset management can improve knowledge and communication within an organization
Dempsey covers the two critical elements of effective asset management.
“Asset management or the management of assets is really about generating value … Asset management, in terms of the practice, is about knowledge and communications.”
And because it involves evaluating different courses of events and making sense of complex decision-making processes, asset management requires a solid understanding of the operating environment and the ability to communicate effectively within it.
“What does AI look like in terms of how it’s going to operate? Well, I mean, one thing they talk about is AI is going to draw a lot more power… It’s really going to provide insights for you to better understand what this technology is doing in ways that you can contribute,” he says.
Asset management insights
- Asset management is not just about maintenance but also about strategy, policy, and forecasting.
- Organizations are moving away from seeing asset management as just overhead.
- AI in asset management is more about augmenting human decision-making rather than replacing jobs, and the industry will soon include the use of more complex models and scenarios.
- Getting data right and understanding how technology is forecasting performance is key in leveraging AI in asset management.
- Knowledge and communication are crucial elements in asset management.
Do a deep dive into more asset management insights by exploring all Asset Champion Podcast episodes.
