AI could halve real estate’s carbon footprint by 2030
Research by proptech venture capital firm Pi Labs reveals that use of artificial intelligence could reduce the annual carbon footprint of the built environment by 50% by 2030.
“With the built world already falling behind on climate targets, we are pleased to share that the findings of our report indicate that AI is set to have a transformative impact on carbon reductions,” said Luke Graham, head of research, Pi Labs. “The good news is that the pace of AI innovation being achieved since the launch of ChatGPT in late-2022 can be put towards significant climate change mitigation by 2030 and, as always, the early adopters within the real estate world are set to benefit the most.”
The research report, Sustainably Intelligent: AI for a Greener Built World, uncovers new details about the transformative impact that artificial intelligence will have on reducing carbon impact in the real estate industry and built environment. Graham, who conducted the research, joined Pi Labs from the University of Oxford’s Future of Real Estate Initiative where he continues as a lecturer. Last year Graham was selected to chair the UK Housing Minister’s PropTech Roundtable.
For the first time, the research team at Pi Labs has calculated the carbon reduction potential of AI to reduce the built world’s environmental footprint. The team found that 5.81 to 6.46 gigatonnes CO2-e of greenhouse gas (GHG) emissions can be avoided annually by 2030 with industry-wide adoption of just four AI use cases. This would offset the entire annual carbon footprint of the United States—the world’s second largest GHG emitter – according to 2022 figures.
After examining 68 sustainability-oriented use cases for AI across the real estate value chain, the following were selected to conduct the analysis with the use of proprietary and public data: reducing raw material inputs through generative design; preventing construction rework with 3D AI analytics; reducing building energy intensity with AI-enabled smart building technology; and redirecting demolition waste with AI-enabled waste material analysis.
According to venture funding data from 2023, there is already significant investor interest in AI-driven green solutions aimed at the built environment. However, Graham said there is the potential to drive this figure up still further with a clearer understanding of the positive climate impact and growth potential of these technologies.
The acceleration of AI in real estate is reliant on access to AI talent and regional differences are already emerging. In the report, Pi Labs’ analysis of LinkedIn profiles highlights Europe’s comparative strength in this regard. The research team found approximately 407,429 Europe-based LinkedIn profiles associated with artificial intelligence, compared to approximately 331,000 in North America.
“While Pi Labs has been investing in AI solutions for years, anecdotal evidence indicates generative AI has served as a catalyst for real estate executives to take their wider innovation strategies more seriously,” said Pi Labs founder and managing partner Faisal Butt. “Now our report reveals, for the first time, the scale and impact that AI can have on the industry and most importantly, in reducing the harmful impact that the built world is having on the environment.”
