Report Showcases AI’s Transformative Potential in Construction

A NEW REPORT showcasing the transformative potential of artificial intelligence (AI) across the building lifecycle has been published.

Building Intelligence: Applying Artificial Intelligence to Revolutionise the Built Environment details the collective insights and progress of the Sustainable Markets Initiative’s Buildings Hub members, Foster + Partners, Trane Technologies and Johnson Controls.

It explores the applications of AI in the built environment, and the principles that need to be upheld to responsibly revolutionise the way buildings are designed, constructed, used and maintained.

Research shows professionals in the built environment are increasingly using AI not just to automate routine tasks but as a collaborative tool throughout the entire building lifecycle, from concept and design to long-term operation and maintenance.

In 2024, the market for AI in Smart Buildings and Infrastructure is valued at $41.4 billion (£30.77bn) and is expected to be worth around $359 billion (£266.79bn) by 2034. This growth is fuelled by advances in core technologies, such as faster processing power and lower data storage costs, that have made AI more scalable and accessible.

“AI isn’t just tech hype; it’s a reality proven by today’s AI-driven successes. AI transforms building performance and lifecycles, boosting sustainability, efficiency, and cutting waste, leading to unmatched economic benefits for owners and managers,” says Dave Regnery, Chair and CEO of Trane Technologies.

AI’s Transformative Potential in Construction

The report shows AI’s integration across the building lifecycle can significantly reduce environmental impact, optimise energy use, and extend asset lifespans. With real-world examples showing that AI retrofits can deliver 20–30% energy savings in under a year.

Other uses for AI include, autonomous AI technology for commercial heating, ventilation, and air conditioning, AI-driven visualisations and generative wind-informed architectural design.

Irene Gallou – Head of Specialist Modelling Group, Foster + Partner, explains: “Architecture is constraint-driven exploration and so is GenAI. By iterating through options at scale, AI amplifies the designer’s process and frees time for higher-order decisions, without displacing the architect’s critical judgment.”

However, to fully realise AI’s potential in the built environment, the SMI Buildings Hub says coordinated action is required across technical, operational, and regulatory domains, and recommends five main principles to accelerate responsible AI adoption. They are:

1. Adopt Responsible AI Principles
2. Use AI for Supervisory Control and FDD
3. Apply Agentic AI to Improve Productivity
4. Select the Right Algorithms and Prioritize Data-Efficiency
5. Enabling Conditions for AI Integration in Buildings

George Oliver, Retired Chairman and CEO, Johnson Controls, adds: “Artificial intelligence is a catalyst for real, measurable progress in the built environment. By harnessing data and technology, AI helps to create buildings that are more sustainable, resilient, and that are strategic assets. The progress we’re seeing is not just about efficiency, it’s about freeing up precious resources to fuel business growth.”

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