AI Can Slash Building Energy Waste by 30%, Finds New KPMG Report

Artificial intelligence systems can cut the energy wasted by commercial and residential buildings by as much as 30%, according to a new report from global professional services firm KPMG. The findings suggest AI is a faster and more effective tool for achieving climate goals than relying on costly physical retrofits alone.


The report, titled "How AI is Helping to Improve Energy Efficiency and Management in Real Estate," argues that traditional methods for making buildings more efficient—like replacing insulation or upgrading boilers—are too slow to meet the ambitious 2050 net-zero targets. Instead, KPMG advocates for a smarter, more dynamic approach centered on "Strategic Energy Management" (SEM) powered by AI.


With buildings contributing to roughly 40% of global greenhouse gas emissions, tackling their energy consumption is a critical part of the climate equation.

The Smart Approach: How It Works
The core of the strategy is to treat energy efficiency not as a one-time upgrade, but as a continuous operational discipline. While implementing an SEM framework on its own can yield annual savings of 5-7%, KPMG's research shows that when these frameworks are augmented with AI, the savings jump to a massive 20-30%.

The AI works by integrating with a building's existing management systems through the Internet of Things (IoT). It then acts as an intelligent, always-on manager for the building's biggest energy consumers:


Real-Time HVAC Optimization: The AI continuously analyzes real-time data on occupancy (how many people are in a room), external weather conditions, and usage patterns. It then makes constant micro-adjustments to heating, ventilation, and air conditioning (HVAC) systems to ensure no energy is wasted heating or cooling empty spaces.


Intelligent Lighting and Controls: The system can automatically dim lights in unused areas, optimize the use of natural light, and ensure all non-essential systems are powered down during off-peak hours.

"Human-Centric AI"
Crucially, the KPMG report emphasizes a "human-centric" approach. The AI is not meant to replace human facility managers but to empower them. The AI handles the minute-to-minute, data-intensive adjustments, while managers set the overall energy-saving goals, define comfort parameters for occupants, and review the results.



Donatas Karčiauskas, CEO of the commercial building efficiency firm Exergio, whose real-world data aligns with KPMG's findings, stated, "AI is already helping buildings cut waste by 20-30% in our projects... But those savings only last if there's smart energy management behind them. Efficiency isn't a one-off upgrade; it's how you run the building day after day."

The report concludes that focusing on smart management and AI-driven optimization offers a more immediate and cost-effective path to decarbonizing the real estate sector, making our cities and buildings not just smarter, but far more sustainable.