During 2022, Built World startups harnessing AI capabilities secured funding rivaling that of FinTech, emphasizing investors' keen interest in tapping into machine learning and computer vision to revolutionize building development, oversight, and transactions with enhanced ingenuity and proficiency.

 

This week, A/O PropTech, an eco-conscious proptech venture capital investor, unveiled an innovative report delving into the realm of the built environment and the application of AI technology within it.

 

The in-depth exploration of the "Built World" sheds light on anthropogenic buildings and physical constructs, such as edifices, that shape our cities, towns, and societies.

 

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The report illustrates that AI-fused tech is forging the groundwork for the future of proptech, as it is woven into various aspects like construction robotics, IoT, digital twins, computer vision, and generative AI. This integration helps establish intelligent structures and infrastructure while facilitating real estate investments.

 

Notably, over the last five years, Built World AI has garnered more VC investment than Fintech AI. While 25% of Built World venture deals included businesses harnessing AI, only 15% of venture-backed FinTech startups during the same timeframe incorporated any form of artificial intelligence.

 

 

 

Early Stage Venture Deals Take the Lead

AI startups in the Built World have been maturing gradually over the past five years. Series A+ deals, which once accounted for around 20% of deal flow, now make up 50%.

 

At the same time, Seed stage activity has consistently maintained its presence, indicating room for future growth. Built World AI Investments Driven by Sustainability Objectives

In 2022, the venture deal volume was primarily focused on real estate transactions, intelligent building, and construction startups.

 

For example, in Germany, syte obtained seed funding for its real estate search engine designed for brokers, urban planners, and project developers.

 

Predium also received funding for its AI-powered platform that supports companies in achieving their ESG goals by supplying data on buildings, energy consumption, CO2 emissions, tenants, and climate risks. This positive trend is anticipated to persist into 2023.

 

Investments in Eco-friendly Construction Gain Traction This Year

In 2023, investments have been made in sustainable construction with companies like Carbonaide and Concretene. Other startups receiving funding include Oculai, which utilizes AI to obtain valuable insights into construction sites, crucial for reducing environmental inefficiencies. Neverwaste (previously known as Unwasted) also secured funding; they repurpose waste cardboard and packaging into panel boards for use in construction, furniture, kitchens, and flooring.

 

 

Emergence of Generative AI and Proptech's Influence

The report anticipates Generative AI playing a pivotal role in the real estate industry by optimizing building design through the creation and rendering of architectural concept design models. It even suggests that Generative AI can produce a Building Information Model (BIM) based on simple descriptive text.

Existing applications include Planner 5D for interior design, while Blackshark.ai utilizes generative models to develop a digital replica of the Earth. Satellite Vu aims to gather data bridging the gap between detailed drone or street-level information and broader large-scale satellite mapping data.

 

In conclusion, the growing influence of AI in the built environment is shaping a more sustainable and efficient future for the construction and real estate industries. Innovative startups continue to make strides in eco-friendly construction, smart building design, and data-driven decision-making. As AI technologies like generative models and digital twins become increasingly integrated into the sector, we can expect to see even more advancements and transformative solutions. The future of the built world is undoubtedly greener and smarter, thanks to the ongoing fusion of AI and proptech.

 

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