How AI and IoT are Transforming Smart Buildings

The continuous development of technologies such as artificial intelligence (AI), the Internet of Things (IoT), and smart buildings are rapidly changing how people understand and use buildings. Perhaps everyone has heard of these words, but many people may ask: “What do these technologies mean to the construction industry?”Why do you need attention?”These technologies are already quietly changing the way commercial buildings operate. Buildings are no longer just four walls and roofs but gradually evolve into living and intelligent entities. Smart buildings use AI and IoT to make real-time decisions, optimize energy use, improve safety, and even improve the overall experience of residents and users. Next, we will delve into how these cutting-edge technologies work and how they affect the future of commercial real estate.

What exactly are the IoTs and AI?

Think of the Internet of Things (IoT) as the senses of buildings, just like eyes and ears. IoT devices are all connected gadgets and sensors in a building, including smart thermostats, lighting controls, security cameras, etc. These devices continuously collect data. For example, during the construction of a building, equipment like jib cranes can also be integrated into the Internet of Things technology to monitor the working status, load, fault alarm, and other information of the crane through sensors, to transmit data in real-time to ensure the efficient and safe operation of the equipment.

AI is the brain that interprets this data. AI algorithms analyze patterns, learn from them, and then make decisions. For example, AI might notice that the office is always empty after 6 pm, and automatically start to lower the heating and dim the lights at that time without you having to move your fingers. Similarly, through intelligent algorithms, the crane can automatically adjust the operating speed during the implementation of construction operations, optimize lifting operations, reduce energy consumption, and improve work efficiency.

The following are a few specific ways AI and IoT work together in smart buildings：

1. Energy saving

The sensor will detect when the room is unused, and the AI will adjust the heating, cooling, and lighting to save energy. According to relevant data, commercial buildings waste 30% of their energy, which makes this an area with great potential for savings.

In the future, more and more people will live in cities. According to the United Nations, by 2050, the proportion of the global urban population in the total population will rise to 68%. This means that existing resources must be used more efficiently, and overall energy consumption and carbon dioxide emissions must be reduced.

Architecture can play a decisive role in solving this challenge. In the EU alone, buildings account for 40% of energy consumption and 36% of CO2 emissions. At the same time, 75% of the EU’s existing building stock has been assessed as energy inefficient. There is great potential to improve the energy efficiency of buildings.

2. Predictive maintenance

Machines communicate with each other. IoT devices track the performance of equipment such as elevators and HVAC systems, and AI analyzes this data to predict when failures will occur. This allows the maintenance team to solve small problems before they become costly problems. Predictive maintenance can reduce failures by up to 70% and reduce maintenance costs by up to 25%.

Oil and gas companies have long adopted advanced analysis for predictive maintenance. For example, an oil producer has been facing compressor problems on its offshore production platform. When a compressor failed, the platform was forced to stop production completely, causing losses of 1 to 2 million US dollars to the company every day. Similarly, in the maintenance of heavy lifting equipment, many similar shipyard portal cranes also rely on predictive analysis to prevent failures. By installing sensors to monitor the load, running time, and component wear of the crane, the system can detect potential problems in advance and avoid site shutdowns caused by equipment failures, thereby reducing maintenance costs.

For many years, engineers have been trying to find the root cause of the failure, but with little success. They suspected that the temperature or pressure of the inlet liquid might be the cause, but could not find a correlation between any one factor and the final failure. By analyzing data from hundreds of sensors and information on 1000 different parameters, advanced analysis shows that high pressure and high temperature, as well as several other factors, are related to the fault. Similarly, through data collection and analysis of key parameters of lifting equipment, the predictive maintenance system can accurately determine which components may be about to be damaged, to carry out repairs in advance.

The algorithm they developed can predict that the compressor will be offline a few weeks in advance. Although they were unable to prevent the failure, the company reduced downtime from 14 days to only 6 days by pre-deploying personnel and repairing equipment on site, saving millions of dollars every time it occurred. This technology is also suitable for heavy equipment such as cranes. Intervening before a failure is predicted can also significantly shorten downtime and save a lot of maintenance and operating costs.

3. Security enhancements

AI-driven systems can learn to detect abnormal behaviors. For example, if the security camera detects movement in an area that is usually quiet at night, AI can send an alarm to the security personnel, lock the door, or trigger an alarm.AI can significantly enhance the security measures of large commercial spaces by identifying anomalies faster and more accurately.

Huge benefits for construction owners

If you are a commercial real estate owner or manager, you may be thinking, “Okay, this sounds fancy, but what good is it for me?”Good question!

1. Cost savings

The biggest direct benefit is to reduce costs, especially in terms of energy consumption. Through intelligent systems that optimize energy use, property managers can significantly reduce operating costs. Related reports say that smart building solutions can reduce the energy consumption of commercial buildings by as much as 10%.

Buildings account for nearly one-third of the world’s final energy consumption and 55% of global electricity demand. In the past 25 years, the demand for electricity in buildings has grown particularly rapidly, accounting for nearly 60% of the total increase in global electricity consumption. In some fast-rising economies, including China and India, construction electricity demand has grown by an average of more than 8% per year over the past decade. Therefore, the energy-saving potential of buildings is huge.

 2. Attract tenants

Tenants, especially those in office space, now expect a smarter environment. A study emphasized that tenants, especially young, tech-savvy companies, prioritize sustainable and technologically advanced buildings. These properties are seen as a healthier and more efficient working environment, making them more attractive to tenants.

For more and more companies looking for new rental space, sustainability is now the primary consideration. Although traditional priorities such as location and talent are still important factors, even in the sluggish office leasing market, low-carbon, high-quality space buildings are increasingly sought after.

The future of AI and IoT in architecture

So, what’s the next step? We will see smarter systems that integrate renewable energy sources such as solar panels and wind turbines. AI will better manage energy storage and distribution than humans, making commercial buildings more energy-efficient. Moreover, shortly, these buildings will be able to learn and adapt in ways that we have not yet thought of.

AI and IoT are changing the rules of the game in commercial real estate, and the potential is huge. Whether it’s saving energy costs, attracting technology-savvy tenants, or complying with sustainable development standards, smart buildings are the future. If you are in commercial real estate, it’s time to start thinking about how AI and IoT can bring advantages to your property maybe even make them future-proof for the long term.