Unlocking the Power of AI in Buildings: Three Ways to Optimize Building Design, Performance, and Asset Management

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The commercial real estate industry is poised for a powerful technological revolution. As we navigate the rising impacts of climate change, resource scarcity, and evolving tenant expectations, the industry must embrace smarter, more sustainable building solutions. Artificial intelligence (AI) is emerging as a game-changer, offering powerful tools to address these challenges and unlock unprecedented value in the building environment.

In our recent webinar, “AI in Buildings: Enhancing Performance and Value,” we discussed with industry leaders from Arup and PIMCO AI’s transformative potential in the commercial real estate sector. Early technology adopters using AI are revolutionizing their building design, operational performance, and asset management, delivering sustainability and financial gains.

The urgent need for transformation

Commercial buildings significantly contribute to global greenhouse gas (GHG) emissions, accounting for approximately 40% of all greenhouse emissions. With 80% of today’s existing buildings expected to still be in use in 2050—the same target year for meaningful carbon footprint reduction—decarbonizing the building environment is an urgent priority.

Alongside environmental concerns, the industry faces evolving tenant expectations. While commercial buildings may offer occupants desirable on-site amenities and fast internet connections, AI takes it one step further to create “smart offices” that proactively respond to occupant and business needs. These smart, digital workspaces help facility managers right-size spaces and monitor real-time usage patterns. AI also enhances transparency, providing tenants with real-time data on building performance.  

Meanwhile, landlords are under pressure to optimize building operations, gain deeper market insights, and demonstrate compliance with tightening environmental regulations. These laws span various areas, from water management (e.g., PFAS and stormwater control) to waste disposal, land use planning, and conservation. Adapting to these demands is essential for maintaining competitive and sustainable properties.

AI: A catalyst for change

The convergence of these factors lays fertile ground for AI adoption in the building industry. Recent technological advancements, including the exponential growth of data availability and the capacity to train sophisticated AI models, make AI-powered solutions more accessible and impactful than ever.

Rising energy costs and climate variability further propel AI to the forefront of innovation. The commercial real estate industry is relatively optimistic for 2025. A recent Deloitte survey found that 81% of global respondents identify data and generative AI intelligence as areas to focus spending for the coming year. Increased budgets are expected to accompany this renewed optimism.

However, consistent data is one of the biggest barriers to transforming our buildings. High-quality AI outcomes require high-quality data, and the industry is progressing in extracting better data. However, 90% of the data we use today was created in the last two years, and we must improve our ability to aggregate and structure data better.

So, why haven’t more building owners adopted AI yet? While real estate typically adopts new technologies more slowly, we must immediately start. According to a recent McKinsey study, AI could generate up to $180 billion in new value for the real estate industry. That means we need to accelerate AI adoption across our sector.

Early success for AI in buildings applications

We’ve observed early success in commercial real estate buildings leveraging AI, dependent on the building’s lifecycle:

1. Design and construct more sustainable buildings: AI-driven tools allow engineers to consider sustainability metrics from the earliest design stages, including elements like low-carbon materials, optimizing shade, and maximizing solar utilization. These intelligent AI-driven designs can contribute to more aesthetically pleasing and environmentally responsible buildings.
2. Operate and maintain to reduce a building’s environmental impact: HVAC systems are often the primary energy consumers in buildings. AI uses real-time data on occupancy, weather patterns, and a building’s thermal properties to optimize HVAC settings, achieving an optimal balance between energy efficiency and occupant comfort. AI-powered predictive maintenance can help minimize the risks of costly repairs.
3. Full asset lifecycle to enhance the tenant experience: AI transforms facility management by providing actionable insights from analyzing data points across the building. Now, facility managers can make proactive, data-driven decisions that strengthen asset and operations performance. AI is being leveraged to optimize HVAC systems, manage microgrids, and predict maintenance needs, helping enhance the full tenant experience.

Discover how AI is transforming building operations to create new value in our latest webinar, “AI in Buildings: Enhancing Performance and Value.” By embracing collaboration, fostering a data-driven culture, and investing in AI-powered solutions, commercial real estate stakeholders can unlock unprecedented value for a more sustainable future.