AI is changing what makes a building smart

Revised 8 October 2026

The question is no longer simply whether those systems are connected, but whether the building can use the data they generate to make better decisions.

That is where artificial intelligence is beginning to change the smart building model.

In a smart building, AI can analyse data from sensors, building management systems and other connected technologies to identify patterns, predict requirements and help optimise how spaces operate. Instead of following fixed schedules and rules, buildings can increasingly respond to what is actually happening inside them.

The potential result is not simply a more automated building. It is a more responsive one.

From automation to optimisation

Consider something as fundamental as heating, ventilation and air conditioning.

A conventional building management system might heat or cool an area according to a predetermined timetable. A more intelligent system can take account of occupancy, weather, historical demand and other data, then continuously adjust operation around actual requirements.

The potential impact is significant. The International Energy Agency (IEA) estimates that optimised HVAC control can save around 10% of energy consumption. More broadly, it estimates that, if scaled up, existing AI-led interventions in buildings could produce global electricity savings of around 300 TWh – roughly equivalent to the current annual electricity generation of Australia and New Zealand combined.

The IEA also identifies some of the obstacles. Many buildings are still insufficiently digitalised, while fragmented ownership and weak incentives can make investment difficult.

In other words, AI cannot make a building intelligent if the underlying infrastructure cannot provide the right data.

Occupancy data changes the equation

Energy is only part of the story.

Buildings can now generate increasingly detailed information about how spaces are being used: which rooms are occupied, when demand peaks, how environmental conditions change and whether facilities are performing as expected.

AI and analytics can make that information more useful.

For a workplace, for example, occupancy patterns might reveal that some meeting spaces are consistently oversubscribed while others are barely used. Combining those insights with room-booking, environmental and AV system data can help organisations make better decisions about their property.

This matters as businesses continue to question how much space they need and what that space is actually for.

The smartest building may therefore not be the one with the most technology. It may be the one that provides the clearest evidence about how its technology and spaces are contributing to organisational goals.

AV becomes part of the building data ecosystem

That creates an important opportunity for the professional AV industry.

Meeting rooms, collaboration platforms, displays, audio systems and room-control technologies all interact with the people using a building. Increasingly, they can also contribute information about how those environments are performing.

The result is a growing convergence between AV, IT and operational technology.

Instead of treating the meeting-room system, lighting controls, HVAC and occupancy sensors as separate layers, organisations can connect information across them. A room that is booked but remains unoccupied, for example, represents more than a scheduling problem: it can affect decisions about lighting, climate control, cleaning, energy consumption and future space planning.

Integration therefore becomes critical. The value lies not simply in collecting more data, but in allowing different systems to contribute to a coherent picture of the building.

Intelligence needs boundaries

There is, however, another side to this transformation.

More connected systems mean more data, more endpoints and potentially a larger attack surface. Occupancy analytics can also create legitimate questions about privacy, particularly when organisations move from understanding how spaces are used towards analysing the behaviour of individuals.

AI does not remove those concerns. In some cases, it makes them more important.

Smart building strategies therefore need to consider cybersecurity, data governance and privacy alongside efficiency and user experience. Organisations need to understand what information is being collected, why it is required, where it is processed and who can access it.

That makes intelligent building design as much an organisational challenge as a technological one.

From smart buildings to useful buildings

The direction of travel is already visible.

At ISE, the smart building conversation increasingly brings together building control, energy management, sensors, networking, security, AV and workplace technologies. ISE 2026's Smart Building Summit, for example, examined how organisations could unlock value from smart buildings beyond energy savings, while the Smart Spaces Megatrend explored AI-driven automation, energy management and cybersecurity.

For ISE 2027, the Residential & Smart Building Zone in Halls 1 and 2 brings together technologies including building control, energy management, smart lighting and shading, access control, video security, IoT and AV.

Exhibitors such as KNX demonstrate why interoperability matters in this environment. Connecting heating, lighting, access control and other building functions creates the foundation on which more intelligent optimisation can take place.

The bigger change, however, is conceptual.

For years, the industry has talked about making buildings smarter. AI is forcing a more useful question: smart enough to do what?

Reduce energy consumption. Make better use of space. Improve occupant comfort. Identify problems before they become failures. Support new ways of working. Give building owners better information on which to base decisions.

The technology matters. But increasingly, intelligence will be measured by the outcomes it delivers.

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Further reading

Find out more about smart buildings, homes and spaces at ISE.