Stuttgart, Germany, November 26, 2024. How companies of the construction and real estate industries are already using artificial intelligence to improve productivity was the core topic of yesterday’s event entitled AI: From Hype to Action organized by Drees & Sommer in Stuttgart. Among the around 80 guests were experts from the AI and technology sectors, including the semiconductor and AI specialist NVIDIA, the tech group Microsoft, the AI Alliance Baden-Wuerttemberg an the proptech company aedifion.
Saying ‘no’ more often, going jogging more frequently, always being on time: in many cases, these good resolutions do not come to anything. It is a similar situation with the hype surrounding artificial intelligence. Everyone talks about it, but in practice not many companies take action. This is also suggested by the results of a recent survey by the industry association Bitkom: So far, only 20 percent of the companies surveyed in Germany have integrated AI into their operating processes. In the construction and real estate industry, the figure is probably even lower. This will change, however, as AI will and must be rapidly introduced in these sectors, too. Because without AI, not much will happen in the long term. These are key issues of the recently issued Drees & Sommer Innovation Scouting Report 2024 – a Trend Radar which analyses global sector-specific information from the construction and real estate data, as well as the results of a comprehensive survey among market participants.
"AI will never build a wall or pick up bricks. People and machines will continue to do this as we move forward, and AI will not change that," says Professor Dr. Michael Bauer, Partner at Drees & Sommer SE. One of the strength of artificial intelligence is its ability to increase quality and efficiency: “We are already seeing that AI-based solutions can be integrated into planning and construction processes. This ranges from the automated drafting of construction plans to the optimization of energy and materials flows, through precise cost estimates."
Saving 10 million metric tons of carbon dioxide
Artificial intelligence could also make a much greater contribution to the success of the much-needed heating energy transition in the building sector: "AI can be used to optimize energy consumption and significantly increase energy efficiency, both when planning new buildings and when renovating existing ones," says Michael Bauer, an expert in the field of innovative energy concepts. When it comes to intelligent building services control, the aedifion company is now the market leader in Germany. "We aim to make buildings part of the energy system of the future," explains Johannes Fütterer, founder and CEO of aedifion. Drees & Sommer has been holding a stake in the proptech company since 2021.
Johannes Fütterer points out: “aedifion has developed a cloud platform that is revolutionizing building operation. With the aid of AI, the software autonomously analyzes and optimizes energy efficiency, comfort and CO2 emissions. According to aedifion, the potential for carbon dioxide savings is enormous. “In Germany alone, use of this technology could save over 10 million metric tons of CO2 per year," says Johannes Fütterer. Renowned companies such as AEW and Hines already rely on the services of aedifion in order to meet their sustainability targets.
AI ecosystem: Using Artificial Intelligence to Build Bridges
For Tobias Schild, data, application and artificial intelligence lead responsible for German small and mid-sized companies at Microsoft, “we are on the threshold of a new era in which artificial intelligence is growing up from personal applications to company-wide solutions. This evolution combines industry and process knowledge with data and opens up completely new business models. The best opportunities arise in an integrated AI ecosystem comprising policymakers, science and business that fosters innovation." In nature, forests form complex ecosystems in which plants, animals and fungi live in symbiosis. AI ecosystems also work in a similar way in the digital world.” They are networks in which companies, research institutes and technology providers exchange and share data and AI solutions.
“These ecosystems offer special opportunities for SMEs. Small companies can access powerful infrastructures and AI services that they could not manage on their own," says Tobias Schild. In any case, in his view, proprietary solutions are already a thing of the past: “Open source, real time analytics and AI frameworks across all company boundaries and data silos are part of the upcoming mega service. Silos have no place in companies, they belong in agriculture.”
Industrial Metaverse: from Plant Planning to Digital Factory Operations
Tobias Schild’s claim has already become a reality at T-Systems, NVIDIA and Drees & Sommer regarding the topic of ‘smart factories’ and the comprehensive use of digital twins in the industry. In simple terms, the industrial metaverse is about digitally simulating the interaction between buildings, operation, machinery, facilities, supply chains, components and people almost one-to-one in the virtual world. This enables potential conflicts to be detected in the virtual world, so that everything runs smoothly in the real-world factory right from the start. By realistically simulating physical processes, smart factory buildings and equipment are first planned in the industrial metaverse and then manufactured. This promises an optimized planning phase with less wastage, reduced CO2 emissions and lower building, modernization and development costs.
“In order to fully exploit the potential of digital methods and AI algorithms the industrial digital transformation needs standardized platforms and data formats,” says Uwe Rechkemmer, senior sales specialist at NVIDIA. With its scalable NVIDIA omniverse platform, the company offers groundbreaking technology for process modeling applications, visualization, simulation and optimization of processes. “On this platform our partners and clients can virtually simulate real-world buildings, factories and processes. They thus have excellent systems for collaborative work and the use of artificial intelligence.” Drees & Sommer contributes its comprehensive experience in planning and realizing production plants.
Networks as a Key to AI Transformation
Also for Dr. Jan Zipp, who is responsible for the AI strategy and innovation issues at AI Alliance Baden-Wuerttemberg and community manager of the office in Tübingen, collaboration between companies, research institutes and startup enterprises is essential to fully exploit the potential of AI. “In a network, we can use synergies to jointly develop solutions that go beyond individual expertise,“ comments Jan Zipp. AI Alliance Baden-Wuerttemberg is an excellent example for such a network. It brings together players from different sectors and promotes the exchange of best practices and development of joint projects.
“We are seeing that companies can implement their AI strategies faster and more efficiently through being able to access to a wide range of skills and technologies," explains Jan Zipp.
Drees & Sommer Partner Michael Bauer agrees: “We see ourselves as an enabler who promotes collaboration and shows corporates that there are many innovative players who provide solutions along the entire value-added chain in the field of AI.“ In addition, Drees & Sommer relies on an AI Lab, a type of digital workshop where new AI applications are tested in a safe environment before they are integrated in regular operations. The combination of innovative platforms, interdisciplinary collaboration and a strong focus on training enables companies to successfully overcome the challenges of digital transformation.