New research from KPMG reveals that artificial intelligence (AI) systems have the potential to reduce energy waste in buildings by up to 30%, significantly improving energy efficiency and supporting sustainability goals. This is particularly important as buildings contribute roughly 40% of global greenhouse gas emissions, and with urban populations expected to reach 70% by 2050, decarbonizing real estate operations is critical to combating climate change.
KPMG’s study emphasizes that traditional retrofit approaches to energy efficiency are too slow and costly to meet the ambitious net-zero targets set for 2050. Instead, the combination of AI with a Strategic Energy Management (SEM) framework offers a faster and more effective route to energy savings. SEM focuses on continuous energy optimization by monitoring usage, assigning responsibility, and managing systems intelligently day-to-day, rather than depending on periodic upgrades.
In practice, AI-driven SEM works by connecting to a building’s existing energy management systems and using real-time data from sensors and occupancy patterns. This data allows AI to automatically adjust HVAC, lighting, and other systems to optimize energy use minute-by-minute while human experts oversee the process to ensure proper functionality and control. This approach is described by KPMG as “human-centric AI,” promoting transparency and trust.
KPMG’s report outlines three tiers of SEM implementation. The first tier involves optimizing existing equipment through better tuning and system controls to improve daily efficiency. The second tier is focused on replacing aging or inefficient equipment. The final tier incorporates renewable energy sources and longer-term power contracts, which should only be pursued after consumption optimization, as renewables provide limited value if energy use is still inefficient.
The experience of Exergio, a company specializing in AI-based energy efficiency tools, supports KPMG’s findings. Exergio’s CEO, Donatas Karčiauskas, highlighted that AI is already delivering 20-30% reductions in energy waste across various climates and building types. He emphasized that these savings are sustainable only when combined with an active culture of strategic energy management, where AI complements human oversight to keep systems running efficiently every day rather than as a one-time upgrade.
The report also emphasizes that improving energy efficiency with AI relies less on installing new hardware and more on optimizing how existing systems are managed. This suggests that facility managers and energy officers need to adopt new operational mindsets alongside leveraging AI technologies to meet climate targets.
KPMG’s research demonstrates that integrating AI systems within a Strategic Energy Management framework can cut building energy waste by up to 30%. This approach accelerates efficiency gains beyond traditional retrofits, supports sustainability goals, and creates a continuous, data-driven culture of energy management involving both AI and human expertise. As cities grow and building emissions remain a major challenge, adopting AI-enabled SEM offers a promising path toward reducing carbon footprints in the real estate sector.
The full KPMG report can be downloaded here.
Image above: KPMG.com
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