{"id":1004287610,"date":"2018-12-19T20:52:01","date_gmt":"2018-12-20T04:52:01","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004287610"},"modified":"2020-02-24T22:18:30","modified_gmt":"2020-02-25T06:18:30","slug":"boosting-performance-with-artificial-intelligence","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/boosting-performance-with-artificial-intelligence\/","title":{"rendered":"Boosting Performance with Artificial Intelligence"},"content":{"rendered":"<p>By Joel Nelson<\/p>\n<div id=\"attachment_1004287637\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004287637\" data-attachment-id=\"1004287637\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/boosting-performance-with-artificial-intelligence\/markus-spiske-207946-unsplash_800x620\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/12\/markus-spiske-207946-unsplash_800x620.jpg\" data-orig-size=\"800,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"markus-spiske-207946-unsplash_800x620\" data-image-description=\"&lt;p&gt;Computer screen&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Photo by Markus Spiske on Unsplash&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/12\/markus-spiske-207946-unsplash_800x620.jpg?w=800\" class=\"size-medium wp-image-1004287637\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/12\/markus-spiske-207946-unsplash_800x620.jpg\" alt=\"\" width=\"300\" height=\"233\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/12\/markus-spiske-207946-unsplash_800x620.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/12\/markus-spiske-207946-unsplash_800x620.jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2018\/12\/markus-spiske-207946-unsplash_800x620.jpg?resize=768,595 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-1004287637\" class=\"wp-caption-text\">Photo by Markus Spiske on Unsplash<\/p><\/div>\n<p>How can artificial intelligence (AI) benefit building operations?<\/p>\n<p>For owners and managers of all property categories, that question is increasingly vital. With that in mind, CPE recently invited two experts to shed light on the promising but complex topic: Matt Eggers, a Yardi consultant and former vice president of Yardi Energy; and Yardi Energy Vice President Akshai Rao.&nbsp;<\/p>\n<p>\u201cSoftware is eating the world\u201d and reshaping how people work and live; the various aspects of operating a building are no exception, Eggers noted. Many webinar participants and CPE readers say they plan to increase technology expenditures next year, but by 25 percent or less, which means building owners have to be smart about their investments. That\u2019s where AI\u2014the ability of machines and computers to perform cognitive functions normally associated with humans\u2014comes in.<\/p>\n<p><strong>Optimizing building performance<\/strong><\/p>\n<p>AI \u201clearns as it goes,\u201d detecting patterns in conditions affecting energy consumption without being requested, then prescribing recommendations. Outside of buildings, AI\u2019s well-documented feats include beating chess grandmasters, winning at \u201cJeopardy!\u201d and creating a new portrait by assimilating thousands of photos.<\/p>\n<p>The expansion of digital data availability (\u201cAI\u2019s food and oxygen,\u201d as Eggers described it), computing power and software enhancements, and cheap storage have made AI viable for the corporate world. And businesses have reacted in force: About 80% of webinar participants said they\u2019re using AI or plan to within three years.<\/p>\n<p>Examples of how AI systems make a building more efficient include optimizing the setpoint (the target temperature) every 30 seconds to ensure comfort without using more energy than necessary; and learning from their past performance to react to changes in occupancy, weather and other factors.<\/p>\n<p>AI systems\u2019 ability to perform continuous small building temperature adjustments translates into better performance through lower utility and equipment maintenance costs; increased tenant comfort that reduces service calls and increases retention; regulatory compliance; and investor satisfaction.<\/p>\n<p>Eggers and Rao, industry experts who frequently share their expertise in real estate industry publications and events, cited case studies of <a href=\"https:\/\/www.yardi.com\/about-us\/success-stories\/sl-green-corp-on-pulse-active-ee\/?cat=commercial&amp;bg=1\" target=\"_blank\" rel=\"sponsored\">SL Green Corp.<\/a> and <a href=\"https:\/\/www.yardi.com\/about-us\/success-stories\/lba-realty-yardi-lobos\/\" target=\"_blank\" rel=\"sponsored\">LBA Realty<\/a>, real estate operators that used energy optimization software to reduce HVAC spend, improve ENERGY STAR<sup>\u00ae<\/sup> scores and achieve millions of kilowatt-hours of energy savings.&nbsp;<\/p>\n<p>(The free, hour-long webinar is available on demand. <a href=\"https:\/\/www.commercialsearch.com\/news\/webinar-improve-building-performance-using-ai\/\">Watch it now<\/a>.)<\/p>\n<p><strong>Complementing, not replacing, humans<\/strong><\/p>\n<p>Eggers and Rao dispelled some misconceptions about AI. For example, things that are <em>not<\/em> AI, but frequently mistaken for it, include dashboards, internet of things sensors, real-time data analysis and other tools that only collect data or can\u2019t learn and improve on their own.<\/p>\n<p>Refuting the perception that AI systems are difficult and costly, Eggers said, \u201cFor modern buildings, these are low-cost solutions that pay back quickly and don\u2019t need to be complicated.\u201d In fact, he said, they\u2019re easier to implement and maintain than control systems that require complex programming and are hard to update or transfer to new employees. And AI systems can be implemented incrementally to produce small initial savings that build the foundation for a fully automated portfolio.<\/p>\n<p>Perhaps the biggest misconception is that AI replaces humans and assumes control, when in fact, \u201cAI systems work best when coupled with smart, expert humans. AI technologies can make you even more effective than you are today,\u201d Eggers said. By making decisions based on thresholds set by human operators. AI provides an \u201carmy of virtual robots and analysts\u201d that help workers do their jobs, relieve manual tasks, allow more time to strategize, lead teams and catch up on to-do lists. By continuously making tiny adjustments, AI saves energy and money while creating more comfort than either AI or humans working alone can do.<\/p>\n<p>What\u2019s more, Rao added, AI systems can be shut off as necessary, enabling operators to \u201ctune the AI system and direct the \u2018robots\u2019 in ever-finer details.\u201d<\/p>\n<p><strong>Building of the future<\/strong><\/p>\n<p>The future of AI best-use cases combines a single-platform, cloud-based system that manages global portfolios and solves problems by making changes according to the human operator\u2019s thresholds\u2014along with an energy strategy that suits the organization. The fact that maintenance, repair and operating (MRO) supply and utility costs account for about 60% of a building\u2019s controllable expenses makes commercial and residential properties prime candidates for improvement.<\/p>\n<p>Industry trends are following the numbers. The last several years brought massive innovation and investment in reducing MRO spend through automated invoice processing, procurement, vendor management and payments. Rao believes the industry is poised to further accelerate progress in managing and reducing energy spend in the next 5-7 years.<\/p>\n<p>Utility data extraction, benchmarking and trends coupled with real-time demand tracking, alerts and scheduling to catch and correct spikes and outliers more quickly will be a good low-investment strategy. Those that want higher-investment, higher-return options will look for solutions that extend into AI innovation to proactively &nbsp;detect system faults and optimize a building\u2019s energy usage through automated heating and cooling.<\/p>\n<p>\u201cA cohesive energy strategy can increase rents, lower costs and increase asset value\u2014and no other initiative in the industry can make all three happen,\u201d Rao said. \u201cWe envision buildings operating at a fraction of their current energy, with large buildings sometimes exporting energy to the grid.<\/p>\n<p>\u201cAI systems can offer higher returns in a competitive market. It\u2019s an exciting future.\u201d<\/p>\n<p><em>Learn how <a href=\"https:\/\/www.yardi.com\/products\/yardi-pulse\" target=\"_blank\" rel=\"sponsored\">Yardi Pulse<\/a> can help you gain better control over energy expenses.&nbsp;<\/em><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Highlights of this month&#8217;s CPE webinar, featuring insights from Yardi Energy Vice President Akshai Rao and consultant Matt Eggers.<\/p>\n","protected":false},"author":610,"featured_media":1004287637,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21787],"tags":[],"class_list":["post-1004287610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Boosting Performance with Artificial Intelligence - 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His byline has appeared in New York Real Estate Journal, Canadian Property Management and Los Angeles Lawyer, among others. He has won multiple awards from major professional organizations including the International Association of Business Communicators and Public Communicators of Los Angeles. 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