Understanding AI-Native Design: The Skateboard vs. The Rocket
Written by: Jules Flesner
AppFolio’s recent Real Estate Performance Management announcement left many customers confused about the contrast between retrofit AI and AI-native software. Realm-X Performers… Performance Platform… agentic AI… oh my!
The press release celebrated features customers assumed the software already did: capture and centralize data, automate work, create value. Hadn't customers been paying for a performance-driven platform this entire time? Hasn’t AppFolio always claimed to "turn disconnected activities into one smooth workflow," “empower customers,” and “build thriving communities”?
If AppFolio is only now announcing software that drives “Real Performance,” were customers paying for fake performance before?
In AppFolio's defense, this was a tricky PR moment- this kind of messaging is very new for the CRE industry. So I’m not knocking them for not nailing it on the first try!
But the more consultant conversations I have, it’s obvious some clarification is needed. Here’s the example I'm using to help AppFolio PM* customers make sense of this recent announcement.
AI Add-On: The Skateboard
Until now, proptech platforms (think: Yardi, Appfolio, RealPage) have been like a familiar skateboard. Solid. Predictable. You know how to ride it. Then, someone straps a motor onto it.
Pros:
You’re familiar with the skateboard
You get more speed
No need to reimagine and rebuild the entire skateboard
Cons:
It’s still a skateboard
The frame wasn’t designed for a motor, so things break
Issues show up fast once you take it out in public
AI add-ons are like strapping a motor onto a skateboard. They kinda help, but they’ll never magically fix the limits of legacy architecture.
Consider what happens when you bolt BetterBot or EliseAI service onto a traditional Yardi ecosystem: duplicate CRMs, calendar sync glitches, competing “sources of truth." Ironically, the backend babysitting can outweigh the time these add-on AI tools are supposed to save your leasing teams.
AI Native Software: The Rocket
Now picture a rocket. From the first blueprint, it was engineered for engines, navigation, and outer-space lift.
Pros:
Smooth, integrated performance
Every part of the system assumes speed and complexity
Transforms improvements (vs. small, tweaked improvements)
Cons:
New jargon and workflows to learn, on top of the reality that not everyone on the team is software-proficient
Upfront time and training commitment
Requires strong client feedback loops during early adoption
AI-native platforms are designed for the future of the commercial real estate industry. They’re not the “tacked-on-tools” traditional software we’ve all been stuck with. AppFolio’s latest announcement is basically them saying, “We’re unveiling a rocketship” - or rather, an AI-native PM platform.
AppFolio’s recent announcement applies only to Property Management for now (another detail that wasn’t clear in the unveiling). Investment Management hasn’t rolled out yet, and to my knowledge there’s no defined timeline for when that overhaul is coming.
Top Takeaway For CRE Firms
Before committing to any new backend software or service, every CRE operator should be asking: Are we upgrading a skateboard, or stepping into a rocket?
AI native platforms are still early. Translation = they'll drain your staff's time. The extra hours and feedback your team delivers is rarely compensated. Your company will carry the load during onboarding. None of this is ideal.
But for long-term durability across market cycles, bandwidth pressures, portfolio expansion, and rising customer expectations, AI-native platforms deliver a realistic path to a smooth prospect/resident experience, stronger NOI, and accurate asset management and investor reporting.
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