New research from proptech VC Pi Labs suggests artificial intelligence (AI) could have a ‘transformative impact’ on reducing the carbon emissions of the global real estate industry and built environment.
The report, ‘Sustainably Intelligent: AI for a Greener Built World’, explores the role that AI could have in achieving industry-wide goals to halve emissions by 2030, and achieve net-zero before 2050.
It reveals that 5.81 to 6.46 gigatonnes CO2-e of greenhouse gas (GHG) emissions can be avoided annually by 2030 with the industry-wide adoption of just four AI use cases. This would offset the entire annual carbon footprint of the US - the world’s second largest GHG emitter – according to 2022 figures.
After examining 68 sustainability-oriented use cases for AI across the real estate value chain, Pi Labs researchers selected four to conduct their analysis, using proprietary and public data: reducing raw material inputs through generative design; preventing construction rework with 3D AI analytics; reducing building energy intensity with AI-enabled smart building technology; and redirecting demolition waste with AI-enabled waste material analysis.
Generative design
Researchers at ETH Zurich have deployed 3D printing to reduce construction material inputs by 70%, as previously reported by WEF. During the research for its report, Pi Labs identified early-stage start-ups deploying AI to design such structures at scale.
Construction rework
Oxford Economics projects global construction output to reach $15.2 tln in 2030. Academic research indicates 2-30% of construction expenditure is wasted through ‘rework’. Companies such as Contilio deploy LiDAR and 3D AI to identify defective work early and prevent rework on construction sites, which means preventing the use of excess construction materials.
Building energy waste
Heating and cooling systems running concurrently occurs regularly in commercial buildings. AI-enabled tech start-ups such as Demand Logic have successfully deployed data analytics to reduce energy waste in buildings.
Demolition waste
Waste sorting remains a manual and inefficient process in many markets. Computer vision technologies such as Sorted.io are being deployed to improve the economics of waste sorting, which can lead to millions of tonnes of construction and demolition waste being redirected annually.
The research was conducted by Luke Graham, head of research at Pi Labs. He joined the firm from the University of Oxford’s Future of Real Estate Initiative where he continues as a lecturer.
Graham said: ‘With the built world already falling behind on climate targets, we are pleased to share that the findings of our report indicate that AI is set to have a transformative impact on carbon reductions. According to venture funding data from 2023, there is already significant investor interest in AI driven green solutions aimed at the built environment, however there is the potential to drive this figure up yet further with a clearer understanding of the positive climate impact and growth potential of these technologies.
‘The good news is that the pace of AI innovation being achieved since the launch of ChatGPT in late-2022 can be put towards significant climate change mitigation by 2030 and as always, the early adopters within the real estate world are set to benefit the most.’
Faisal Butt, managing partner and founder of Pi Labs, said AI is ‘revolutionising the way we design, construct, manage, and experience real estate through enhanced efficiency, transparency, and data-driven decision-making. From enhancing design and planning through to optimising construction processes, energy management, and corporate decision-making, AI is bringing numerous benefits as it continues to evolve’.
