The Challenge: Is AI Making Us Think Less?

A recent study from Carnegie Mellon University and Microsoft Research raises an important concern: as AI tools become more advanced and widely used, they may erode our critical thinking skills. The study, which surveyed knowledge workers across industries, found that people who relied heavily on AI for decision-making reported lower levels of independent problem-solving and cognitive effort. In contrast, those who maintained high self-confidence in their own judgment were more likely to engage in critical thinking - even when using AI.

This presents a dilemma where leaders and teams are increasingly adopting AI for a range of functions, from investment analysis and resident engagement to maintenance forecasting and financial modeling.

The key question: Will AI use lead to a decline in human expertise, or can it be leveraged to enhance critical thinking where it matters most?

Critical Thinking Still Matters

AI excels at processing large volumes of data, automating routine tasks, and offering predictive insights. But it lacks human intuition, ethical reasoning, and the ability to weigh complex, context-driven decisions.

For multifamily and affordable housing, critical thinking is essential in:

Investment Strategy & Risk Assessment

Deciding where to invest capital requires analyzing market conditions, economic trends, and local regulations—factors AI can support but not fully evaluate.

AI might provide data-driven projections, but human judgment is needed to assess political risks, social trends, and the competitive landscape.

Resident & Community Relations

AI can analyze resident feedback, detect sentiment trends, and even suggest policy changes.

However, ethical decision-making, crisis management, and personalized resident engagement require human oversight. AI doesn’t have the emotional intelligence to navigate sensitive resident concerns, housing discrimination risks, or eviction policies.

Capital Planning & Financial Forecasting

AI can generate financial models, cash flow projections, and CapEx plans, but these are based on assumptions that leaders must validate.

Critical thinking is required to interpret financial projections, question data accuracy, and adjust strategies based on real-world unpredictability.

Regulatory & Compliance Decisions

Housing regulations change frequently, and while AI can track policy updates, compliance decisions require nuanced interpretation.

Fair housing laws, tax credit qualifications, and eviction moratoriums involve legal and ethical considerations that AI cannot navigate alone.

Talent Management & Organizational Strategy

AI can assist with interview recommendations, performance tracking, and leadership development strategies, but final decisions require human insight into company culture, diversity considerations, and leadership dynamics.

In these areas, AI should serve as an assistant—not as a replacement for critical thinking.

Where AI Can Operate Without Critical Thinking

Not every task in multifamily housing requires deep analysis or independent problem-solving. Many workflows are routine, repeatable, and highly structured—making them perfect for AI automation.

AI can replace manual effort in:

Data Processing & Report Generation

AI can compile rental trend reports, market comparisons, maintenance logs, and leasing performance metrics without requiring deep thought from a human.

Instead of spending hours on spreadsheet calculations, teams can spend time interpreting AI-generated reports and using them to guide strategy.

Routine Communication & Documentation

AI can draft resident notices, lease agreement summaries, and investor updates based on pre-defined templates.

This frees up time for managers to focus on higher-order strategic conversations.

Predictive Analytics & Forecasting

AI can predict maintenance needs, identify delinquency trends, and assess leasing velocity using historical data.

While leadership must still validate and act on predictions, AI can eliminate guesswork and improve accuracy.

Automated Compliance Tracking

AI can monitor local, state, and federal housing policies, flagging changes that impact compliance. AI can also handle eligibility, verifications, and certifications based on pre-trained criteria.

This allows legal and compliance teams to focus on complex regulatory interpretations instead of manually scanning legal updates or spending hours to days reviewing tenant files or documents.

Task Automation for Leasing & Operations

AI chat agents can handle basic resident inquiries, schedule tours, and process routine service requests.

AI-powered tools can generate move-in/move-out checklists, automate vendor approvals, and streamline accounts payable workflows.

In these cases, AI removes friction from workflows, allowing human talent to focus on higher-value work.

Finding the Right Balance: AI + Human Oversight

AI is not inherently bad for critical thinking—but poor implementation can lead to over-reliance. If organizations fail to structure AI use carefully, teams may become dependent on automation, losing the ability to validate AI outputs or think critically about decision-making.

Key Risks of Over-Reliance on AI

• "Black Box" Decision-Making: When AI makes recommendations without transparency, teams may accept results without questioning them

• Skill Erosion: If AI handles financial modeling or forecasting without human oversight, teams may lose expertise in these areas

• Bias Reinforcement: AI systems learn from existing data. If that data reflects historical biases in lending, leasing, or hiring, AI may amplify discrimination rather than eliminate it

How to Implement AI Without Weakening Critical Thinking

Housing organizations should develop structured strategies to ensure AI strengthens rather than diminishes critical thinking:

Establish AI Training Programs

• Teach teams when to trust AI outputs and when to question them.

• Provide examples of AI errors to reinforce the importance of human oversight.

Designate AI "Assist" vs. AI "Decide" Tasks

• Identify which processes AI can handle independently vs. where human validation is mandatory.

• Example: AI can automate rent roll analysis, but investment decisions must involve leadership judgment.

Require AI-Augmented Decision-Making

• AI should provide insights, not final answers. Ensure teams engage in critical evaluation before acting on AI recommendations.

• Example: If AI suggests a 10% rent increase, leaders must analyze competitive trends, affordability constraints, and potential resident retention risks.

Encourage Debate & Challenge AI Outputs

• Teams should be encouraged to critically assess AI-generated insights rather than accepting them at face value.

• Conduct scenario planning exercises where teams compare human-led vs. AI-led decision-making to identify strengths and weaknesses.

Build AI Ethics & Compliance Guidelines

• Define acceptable AI use cases and set guardrails to prevent bias, discrimination, or unethical decision-making.

• Ensure human accountability remains central in critical decision-making.

The Future: AI as a Thought Partner, Not a Replacement

AI should not be seen as a substitute for human expertise—it should be viewed as a thought partner that amplifies human judgment.

For multifamily and affordable housing leaders, the real opportunity lies in designing AI systems that:

• Remove busywork to free up time for strategic thinking

• Provide data-driven insights while keeping human expertise in the loop

• Enhance decision-making without diminishing human accountability

The industry must resist the temptation to let AI operate unchecked and instead use it to empower teams, not replace them.

AI doesn’t erode critical thinking. Poor AI implementation does. The challenge for leadership is ensuring that AI augments, rather than undermines, the judgment and expertise that drive long-term success.