A new report from the Sustainable Markets Initiative (SMI) Buildings Hub reveals how AI is already reshaping the way buildings are designed, constructed, and maintained.
Buildings currently produce nearly 40% of global emissions, but SMI found that AI retrofits are delivering 20–30% energy savings in less than a year.
And with the market for AI in smart buildings projected to balloon from $41.4bn today to $359bn by 2034, SMI says the technology is quickly moving from experiment to necessity.
The case studies in the report – Building Intelligence: Applying Artificial Intelligence to Revolutionise the Built Environment – are striking.
Retailer saves $1m
At US discount retail giant Dollar Tree stores, AI-driven heating, ventilation, and air conditioning systems saved $1m and 7.9m kWh of power in a year.
An unnamed US university slashed greenhouse gas emissions by 68% with Johnson Controls’ optimisation platform.
Meanwhile, architects at Foster + Partners are turning to AI tools that balance carbon efficiency with comfort and aesthetics.
Iterating options at scale
“Architecture is constraint-driven exploration and so is GenAI,” said Irene Gallou, head of specialist modelling at Foster + Partners. “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.”
SMI chief executive Jennifer Jordan-Saifi said AI wasn’t just about efficiency; instead it was “sparking unprecedented innovation”.
“This isn’t tech hype,” said Trane Technologies’ chief executive Dave Regnery. “It’s reality proven by today’s AI-driven successes.”
Still, the report warns that the promise of AI hinges on responsible adoption. It urges the sector to establish ethical standards, invest in skills, and align on data practices.
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