Sébastien Condom, Head of International Business at Voltalis
Buildings are poised for a technological revolution. Globally, they are at the forefront of the ecological transition, accounting for 30% of energy consumption, 44% of net CO2 emissions, 15% of freshwater usage, and 50% of cement consumption. Today, 4.5 billion people live and work in cities, compared to just 1.5 billion half a century ago. Yet the experience of using buildings has not evolved dramatically over the past 50 years. The last major innovation was the introduction of air conditioning in the 1950s.
Even our so-called “smart buildings” remain relatively “dumb” when compared with the capabilities of even the most basic data management techniques and automation systems available in other industries. But recent advancements in the Internet of Things (IoT) and Artificial Intelligence (AI), coupled with new environmental regulations and innovative business models, are driving a revolution in the building sector. The convergence of the Real Estate and Energy industries presents an unparalleled opportunity for exponential growth, particularly as they address the critical challenges of the energy transition.
Taking buildings to the next level with AI
A key limitation of existing “smart” or “green” buildings is that it still requires significant investment of money, human time and effort to optimise building systems individually in limited ways. Traditional Building Management Systems (BMS) face significant limitations in managing large, real-time data flows. These systems are costly to implement and maintain, demand advanced user training, and create dependencies on multiple vendors, complicating stakeholder management. While BMS excel at executing simple, predefined rules, they struggle to adapt dynamically to complex and ever-changing environments.
Modern data infrastructures, however, are revolutionizing this landscape. They not only integrate internal and external data sources within buildings and between portfolios of buildings. They also break down silos between proprietary IT systems, such as those managing energy, security, enterprise resources, customer relationships, or maintenance. This interconnected approach unlocks the potential of Artificial Intelligence, including the application of Generative AI, enabling advanced services powered by large, dynamic datasets.
The real estate sector stands to benefit immensely from these advancements. Sophisticated predictive algorithms and models can now be developed, driving a digital transformation that enhances building intelligence and optimization. For stakeholders, this evolution promises smarter, more efficient systems and a leap forward in value creation. Benefits are immense and returns short. As an example,
AI could generate up to 30% additional energy savings compared to an otherwise efficient normal building.
AI Unlocks New Horizons
Artificial intelligence is transforming building management, moving beyond individual pre-set silo-per-silo optimization to a revolutionary “system of systems” (SoS) approach. This paradigm allows groups or networks of buildings to collectively contribute to grid stability by adjusting energy consumption during periods of fluctuating renewable output or demand. By mitigating outages, accelerating the decarbonization of energy production, and reducing the need for costly physical grid expansion, SoS optimization represents a major leap forward in sustainable infrastructure. It allows micro- and macro-optimization at the same time.
But the potential goes far beyond energy management. AI-enabled building systems are poised to tackle a wide array of urban challenges, offering multi-parameter optimization across utilities, traffic, congestion, emissions, air quality, and even citizen well-being.
Agentic AI: The Next Frontier
At the heart of this transformation are emerging “AI agents,” autonomous systems capable of interpreting their environments, responding dynamically to inputs, and making complex, independent decisions. As Sequoia Capital aptly describes, this shift is moving the industry from “Software as a Service” to “Service as a Software.”
These AI agents operate not just in isolation but as part of a coordinated ecosystem. For instance, an agent optimizing energy consumption across a group of office buildings could collaborate with other agents managing local power grids and urban traffic systems. Together, they could synchronize operations based on rush-hour patterns, enhancing efficiency and delivering benefits to entire communities.
From Vision to Reality
What once seemed like science fiction is now within reach. Cognitive buildings powered by AI have the potential to deliver substantial societal benefits enhancing user experiences, reducing costs, and substituting expensive physical infrastructure with smarter, digital alternatives. This cognitive revolution is not just about technological evolution; it’s about reimagining urban ecosystems for a more sustainable and connected future.