The construction industry is a significant contributor to global carbon dioxide (CO2) emissions, with several studies highlighting its impact on the environment. Concrete, in particular, is a major source of carbon emissions and is notoriously expensive to produce. However, innovations like Concrete.AI are helping address these challenges by using applied AI models to reduce CO2 emissions and lower production costs.
As Mathieu Bauchy, co-founder of Concrete.AI, explains: “Concrete accounts for 8-10% of global CO2 emissions, which is more than three times the emissions from aviation. That’s what motivated us to create Concrete.AI – to help concrete producers reduce costs, improve sustainability, and maintain performance in their products.” Bauchy shared these insights in collaboration with Forbes to highlight the company's efforts to make concrete more sustainable. Concrete.AI, along with other industry leaders, is exploring how AI can revolutionize the sector by promoting more sustainable, cost-effective options. For example, AI has enabled Concrete.AI to develop new concrete mixes that are not only cheaper and greener but also just as strong and reliable. As Bauchy explained, “If every producer adopted this technology, it could prevent 500 million tons of CO2 emissions annually, equivalent to the emissions of France and Argentina combined."
In JLL’s recent 2025 U.S. Construction Outlook , their report highlights the growing influence of AI in the industry. As they note, “The fundamental need for sustainability remains unchanged and will shape long-term requirements. Improved integration of advanced technologies such as AI, IoT and digital twins are reshaping design, construction, and building management, offering opportunities for increased efficiency and value creation in both the short and long term.” Julie Hyson, Americas Portfolio Clients, Services and Industries Lead at JLL, also recognizes AI’s potential for enhancing decision-making. Echoing Bauchy’s views, she believes AI can simplify data interpretation and streamline decision-making processes. As Hyson puts it: “We need technology and AI to help us with real-time options analysis, for example – uploading a spec and getting real-time suggestions for improved carbon reduction, including recommendations for materials and suppliers, would be game-changing.”
Hyson’s perspective on the power of AI for data analysis is shared by Dennis McConnell, President of Pendergrast Farm LLC. He explains, “AI and digital tools are useful analytical tools to help us calculate the most rational path to sustainable growth.” However, in terms of data-sharing, Deloitte’s Sustainable Construction: Designing and Building a Greener Future report warns that generating data alone is not enough to implement and scale sustainable buildings successfully. The report stresses that this data must be paired with a comprehensive strategy for implementation. As they advise: “Information can be made actionable by enhancing interoperability and standards globally. For example, the European Commission’s Digital Agenda is one of seven identified pillars for growth in the European Union that integrates information and communication technology in sustainable construction.” While this report offers a European example, similar U.S.-based initiatives exist, such as the ENERGY STAR® Program, the National Institute of Standards and Technology (NIST) Smart Cities Program, and Building Information Modeling (BIM) Standards. Ultimately, while AI serves as a powerful tool for data analysis and decision-making, its true potential is realized when combined with thoughtful planning, expert analysis, and a collaborative approach to implementation, ensuring that technology enhances, rather than replaces, human insight and strategy.
As it relates to the construction industry’s rising material costs, Hyson offers some key advice on how developers can balance the push for more sustainable buildings with the need to maintain profitability and efficiency:
“I’ve seen projects be able to achieve this balance when they have three critical things:
1. An established maximum allowable cost for the development.
2. A clear technical performance criteria.
3. A contract that allows teams flexibility to make smart decisions to achieve 1 and 2.”
McConnell also shares his insights for reducing costs, emphasizing the importance of density adjustments: “The most effective way for a developer to maintain profit margins is to increase density or redefine density to meet consumer demand both in price and sustainability. An example is offset density, which allows the same number of homes to be built on a plot of land, but instead of clear-cutting the entire area and removing all vegetation, homes are clustered on smaller lots, leaving larger areas of open space for all residents to enjoy. This method of development also has the advantage of costing less for development and has the advantage of making a better biome for humans and a better lifestyle.”
McConnell, with 50 years of experience as a home builder, offers valuable insights not only on reducing costs but also on adopting greener building practices. He recommends the ENERGY STAR® Program as a useful resource, as many homes he has developed align with its sustainability practices. Looking ahead, McConnell’s key advice for developers is patience:
“The construction ecosystem is an extremely complex amalgamation of builders, developers, manufacturers, tree farmers, government regulators, educators and research groups with a lot of moving parts and diversity of market players. The passage of time, along with quality testing, trade conventions, regulatory reviews, and input from industry professionals, all contribute to the development of new products that meet sustainability goals, improve energy efficiency, and reduce carbon footprints.”
Hyson, too, draws on her extensive experience as Services and Industries Lead for JLL’s Project and Development Services team to offer her perspective on industry progress: “Achieving something in the built environment requires intense coordination and collaboration. Things are evolving at a pace where it’s no longer acceptable to do things in isolation. Integration of companies, systems, tools, technology, and even co-location — these are becoming table stakes in delivering better project outcomes. There is clear evidence of how data sharing positively impacts a project’s KPIs when done well.”
The construction industry faces significant challenges in reducing its environmental impact, but advancements in AI and data-driven technologies offer promising solutions, act as powerful tools to help achieve sustainability goals and and streamline processes for greater efficiency and impact. By embracing sustainable practices and fostering collaboration, stakeholders can help shape a future where buildings are both cost-effective and environmentally responsible.
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