National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Using AI to Cut Energy Use
According to JLL, “at least 90% of buildings in the world’s most developed cities are over a decade old, often falling short of today’s energy standards.”
The good news? “Improving energy efficiency could make the second-largest impact on reducing carbon emissions over the next decade,” JLL said in a recent article on how artificial intelligence can help with energy usage.
The article explained that many buildings already have sensors and smart technologies in place. Going one step further, gathering real-time data on equipment and systems can help AI analyze and optimize how buildings use energy.
Specifically, the technology can:
- Determine energy and cost-saving opportunities
- Model demand fluctuations on various scenarios, like weather events
- Develop algorithms for predictive maintenance and HVAC optimization
- Create benchmark energy models that help improve energy planning
- Develop strategies that combine renewable energy with traditional sources
- Guide retrofits to improve a building’s energy efficiency
While artificial intelligence can be key in supporting sustainability and more efficient energy use, barriers to its implementation remain.
“Implementing AI is more than a tech upgrade; it requires reorganizing building workflows to support an AI-driven model,” said Yuehan Wang, JLL’s Global Research Associate – Real Estate Technologies, in the article. “Leadership must also ensure every level of their organization is engaged with the AI solution.”
On the positive side, green leases can help drive sustainability goals. Additionally, government subsidies (like the U.S. Inflation Reduction Act and the EU’s Green Deal) can help lower the cost of AI implementation. Even so, the article points out that more incentives are necessary to encourage AI adoption.
“Regulations are increasing investor demand for AI to address energy efficiency challenges,” according to Ramya Ravichandar, Vice-President of Product Management, Smart Buildings & IOT. “The key is finding additional incentives to encourage all users in an organization to embrace AI.”
However, Ravichandar explained in the article that AI will likely launch a paradigm shift in building operations. “The technology is here,” he commented. “Now we need to integrate it into processes and equip people to unlock its full potential.”
- ◦Development
