NLA’s Chief Executive Nick McKeogh reflects on insights from a roundtable at SOM low-carbon studio, examining how AI can drive equity and sustainability in real estate.

A few weeks ago, NLA and Skidmore, Owings and Merrill (SOM) jointly hosted a roundtable discussion at SOM’s recently designed low-carbon studio space in the Broadgate Tower, titled "How AI, Climate & Equity Resilience Will Redefine Real Estate’s Future". We brought together leading built environment experts to explore the intersection of AI, sustainability, and equity in shaping the real estate industry. With the increasing urgency around climate change and the drive for greater inclusivity, the discussion focused on how technology can be leveraged to achieve resilience, sustainability, and a more equitable built environment.

 

As the conversation progressed, key themes emerged, drawing parallels from the framework of the New London Agenda, which emphasises collaboration and data-driven decision-making, and it was clear that taking responsibility, providing clarity, and building trust are central to integrating AI into the future of the built environment.

 

The roundtable began with a conversation on the importance of accountability in the built environment. Participants emphasised the need for the industry to take ownership of the challenges at hand, particularly in the context of AI’s potential to address inefficiencies in real estate development. Mina Hasman, Sustainability Director at SOM, highlighted the pivotal role of AI as a tool, rather than a solution in itself. However, she raised concerns about data reliability, questioning whether the information generated by AI can be trusted, particularly when it comes to unknown or biased data.

 

This sentiment was echoed by other participants, who emphasised that the responsibility for ensuring AI is used effectively lies not just in the technology itself but in the people who use it. Marylis Ramos, Director at Savills Earth Advisory, pointed out that resistance to AI adoption often stems from a lack of understanding, particularly among older generations in the industry. Younger professionals, she noted, are more likely to embrace AI, but proper training and quality assurance are essential to ensure that AI is used responsibly and accurately.

 

One key theme that emerged was the necessity of upskilling and reskilling the workforce to ensure that AI is used effectively. Judith Everett, Chair of the UK Green Building Council (UKGBC)’s Board, suggested that businesses should invest in ensuring that staff understand the "why" behind AI’s use and its implications for their roles. This understanding would not only foster better adoption but also ensure that AI’s outputs align with the values of sustainability and equity in the built environment.

 

As the conversation shifted toward the need for clarity, it became clear that defining the parameters of AI use and ensuring transparent data practices are crucial for its successful integration into the built environment. The challenge of standardising AI outputs and ensuring consistent quality was a key concern. Elinor Huggett, Global Real Estate Sustainability Lead at Deloitte, stressed the importance of maintaining human creativity while using AI to enhance workforce efficiency, rather than replace it entirely. She raised the concern that the over-reliance on AI might inhibit learning, particularly for future leaders who might miss out on the critical process of fact-checking.

 

The conversation also touched on the complexities of data sharing and security. While the potential for AI to aggregate data and provide insights was widely recognised, there were concerns about the risks of sharing sensitive information. Julia Skeete, Senior Associate Principal at SOM, explained that, in their closed environment, AI was currently being trained within the project management team using internal materials to ensure security and privacy. At the same time, participants noted that AI could play a pivotal role in clarifying complex data, such as green premiums, which are currently difficult to quantify.

 

The New London Agenda's emphasis on a collaborative approach to urban development was also reflected in this discussion. Cristina Gamboa, CEO of the World Green Building Council, highlighted the need for a common language and better alignment between stakeholders, especially investors and developers, to understand and act on sustainability metrics. By leveraging AI to provide greater clarity around these issues, the industry can better navigate the complexities of sustainable development.

 

Matt Cook, Head of Digital Innovation and Technology at Derwent London, added that AI could be instrumental in streamlining the building process by identifying inconsistencies and flagging inefficiencies. He stressed that AI’s application in real estate isn’t just about future projects but can also address current inefficiencies within retrofitting and building management, helping the industry meet sustainability targets more efficiently.

 

Trust emerged as a key theme in the latter part of the discussion. The ability to trust AI outputs, particularly when it comes to assessing the environmental and social impacts of real estate projects, was seen as crucial for its adoption. Participants noted that while AI could be a powerful tool, it needed to be used in conjunction with human oversight and careful evaluation.

 

Judith raised concerns about greenwashing and the potential for AI to be misused if not properly regulated. There was agreement that robust standards and rigorous data practices are essential to ensure that AI-driven insights are credible and trustworthy. At the same time, there was recognition that AI can play a role in building trust by providing more transparency in data, particularly when it comes to issues like energy efficiency and carbon emissions.

 

The roundtable also explored the importance of creating a safe space for sharing data and experiences, particularly when it comes to learning from failures. Mina emphasised the need for the industry to adopt a culture of knowledge sharing, particularly around challenges and mistakes. Drawing from the airline industry’s approach to learning from failure, she suggested that the built environment sector could benefit from a similar attitude—anonymising data to allow for collective learning without fear of reputational damage.

 

Marylis highlighted the challenges of sharing data in a highly competitive and siloed industry. She pointed out that data ownership and privacy concerns often prevent the free flow of information, even within organisations. However, the roundtable also recognised that collaboration is essential to overcoming these barriers. By sharing data responsibly and establishing clear frameworks for its use, the industry can build trust in AI and its ability to drive better outcomes for sustainability, equity, and resilience.

 

Sam Szczurek, Innovation Lead at Places for London, emphasised the importance of having a strategic impact framework to assess the broader impact of real estate projects, beyond just the financial bottom line. He suggested that AI could play a role in analysing these broader impacts and tracking progress on goals like affordability and job creation, which are key components of the New London Agenda's vision.

 

The roundtable discussion underscored the critical role that AI, climate resilience, and equity will play in shaping the future of real estate. Data is of course key, and as Julia Skeete noted, better understanding the use of ‘tokens’ in computational modelling opens the opportunity for companies to take a mature approach and standardise, audit and report on the use of AI. Taking responsibility for the challenges at hand – including the heavy energy consumption, carbon emissions and rare minerals required for AI training and operations – providing clarity in data practices, and building trust through transparent and ethical AI use, the industry can make significant strides toward a more sustainable and inclusive built environment. 

These discussions align closely with the New London Agenda’s call for a collaborative, data-driven approach to urban development. The conversation is far from over, and the next steps will involve further collaboration, innovation, and a shared commitment to achieving real estate that is not only economically viable but also resilient, equitable, and sustainable for future generations.