The global artificial intelligence (AI) market for commercial buildings is being driven by advancements in machine learning, data availability, and computing power, according to our latest AI market research.

Our meta-analysis forecasts that the broader Artificial Intelligence market is predicted to reach over $500 billion globally by 2026, representing a 20.9% compound annual growth rate between 2023 and 2026.

This accelerating growth demonstrates that Artificial Intelligence is moving past the hype and is now driven by real-world results. According to a Moore Global survey on AI adoption, companies identified as the fastest AI adopters realized 15% average annual revenue growth from 2019 to 2023. This figure stands at more than double the rate of firms that were slow to invest in AI over the same period.

“Today's buildings are transitioning from rules-based analytics relying on predefined thresholds towards AI-enabled predictive machine learning models and ultimately more advanced adaptive systems,” reads our new report. “This progression mirrors a parallel shift from siloed data gathering to building-wide integrated analytics and optimization, but mainstream adoption still faces hurdles surrounding trust, perceived complexity, and integration.”

Adoption Trends for Artificial Intelligence in Commercial Buildings

The integration of Artificial Intelligence into commercial buildings represents more than just an evolution from traditional BMS towards more sophisticated, data-driven operations; it also offers the opportunity to fundamentally change how buildings are managed, optimized, and experienced by occupants. However, despite the massive interest in AI, many of the technology’s more cutting-edge, emergent capabilities remain largely unknown to leaders and decision-makers in the space.

As a result, only a small proportion of building IoT systems are either assisted, enabled or directly managed by AI or ML processes today, but our study suggests this proportion is to rise significantly over the next decade. The new research indicates that over 300 companies are now marketing AI-enabled solutions into smart buildings, and the scale of investments being made are a strong indicator that the market is on the cusp of a major transformation.

“While Artificial Intelligence is ranked among the most impactful technologies, its rankings for user-understanding are well below that of other technology areas such as cloud computing, and communications standards. This indicates a lack of detailed awareness on how these technologies will likely manifest and evolve within the sector, and points to the urgent need for education and engagement between innovators and users to fully leverage AI's capabilities.”

Transformative Impact of Artificial Intelligence in Commercial Buildings

Over the course of our research, we identified a total of 66 distinct use cases within a range of categories where AI is being actively developed or commercialized. In the following categories, we highlight just a few examples of the transformative impact AI is now having in commercial buildings.

Energy management and efficiency remain the key smart building adoption driver and Artificial Intelligence is well-placed to help facilitate step-change improvements by gathering and analyzing data from meters, bills, weather forecasts, occupancy sensors, BMS, and more. AI-powered software can generate accurate predictions for future energy needs, allowing for all kinds of predictive, automated, and optimization processes for energy-consuming building systems.

Security and access control includes a large range of Artificial Intelligence applications that enhance physical security, access restrictions, visitor management, and related functions within smart buildings. Security is arguably the most mature and well-established category in our analysis, with almost all major video surveillance manufacturers and a growing number of access control systems manufacturers actively promoting fully commercialized AI-enabled solutions.

Sustainability and regulatory compliance have moved to the forefront as pivotal concerns for the real estate industry amidst escalating regulations and rising stakeholder expectations for improved ESG performance. Artificial Intelligence is playing an important role in improving data collection, analytics, compliance processes, and overall sustainability profiles, with solutions that can ingest disparate datasets to automate reporting, identify efficiency opportunities, and model various environmental impact scenarios.

“Billions of dollars are being invested by Big Tech in an ‘AI Arms Race’. This is driving rapid innovation which will be of benefit to all industries, with the cost of training deep learning models decreasing at a rate 50 times faster than Moore’s Law.”

“The commercial buildings industry stands on the cusp of significant advancements, driven by AI’s potential to enhance operational efficiencies, improve occupant experiences, and contribute to sustainability goals,” our study continues. “As AI technologies become more accessible, commercial real estate stakeholders must navigate these developments strategically to harness AI’s full potential.”