Artificial intelligence (AI) is rapidly emerging as a transformative force in the real estate sector, particularly in the pursuit of energy efficiency and climate resilience. With buildings responsible for nearly 40% of global greenhouse gas emissions, AI offers a timely and practical solution to optimise energy use, reduce emissions, and enhance operational performance.

The report highlights the rise of human-centric AI, which prioritises occupant comfort and sustainability. Through advanced algorithms and real-time data analysis, AI systems can autonomously manage HVAC operations, detect inefficiencies, and adapt to changing conditions. Case studies from Estonia demonstrate how AI-powered tools have achieved significant energy savings—up to 60%—while maintaining optimal indoor climates.

Strategic Energy Management (SEM) is presented as a vital framework to support AI deployment. By combining technological innovation with organisational change and capability development, SEM enables real estate firms to systematically improve energy performance. The approach is structured around three tiers: optimising existing assets, upgrading equipment, and integrating renewable energy.

Ultimately, the report concludes that AI is no longer a luxury but a necessity for future-proofing real estate portfolios. When paired with a people-centred strategy and robust governance, AI can help cities transition towards low-carbon living, offering both environmental and economic benefits to owners, managers, and occupants alike.