- KPMG’s new report says retrofits alone are too slow and expensive for net-zero by 2050.
- Strategic Energy Management (SEM) is the missing cultural framework.
- Exergio reports AI-driven cuts of 20–30% in real-world buildings.
- SEM delivers 5–7% savings yearly on its own, but 20–30% with AI.
- Efficiency depends more on active management than shiny new hardware.
Old Retrofits, New Rules
KPMG’s latest report, How AI is helping to improve energy efficiency and management in real estate, argues that the old playbook—rip out the HVAC, swap in new boilers, wait for contractors—will not cut it. Traditional retrofits are costly, disruptive, and too slow to meet net-zero pledges for 2050.
Instead, the firm places its bets on Strategic Energy Management (SEM). This framework keeps buildings in check daily rather than once a decade. SEM’s mantra: don’t just buy new toys; learn how to run what you have correctly.
Enter AI, Stage Left
This is where artificial intelligence sneaks in. According to Exergio, a Lithuanian company fine-tuning commercial buildings with machine learning, KPMG’s theory is already happening on the ground.
“AI is already helping buildings cut waste by 20–30% in our projects, no matter the climate or the age of the property,” says Donatas Karčiauskas, CEO of Exergio. “But those savings only last if there’s smart energy management behind them. That’s exactly the point KPMG makes, efficiency isn’t a one-off upgrade, it’s how you run the building day after day.“
What SEM Actually Looks Like
SEM is not just jargon—it is a cycle: assessment, planning, implementation, capability-building, and monitoring. On paper, it sounds dull; in practice, it means your office can stop heating empty rooms.
- Tier one: Maximize the potential of what already exists. Tune HVAC, lighting, and control systems to ensure they function properly. This is AI’s sweet spot—constant recalibration based on occupancy and weather.
- Tier two: replace clunkers. Old chillers, boilers, and pumps go out; efficient models come in.
- Tier three: bring in renewables or long-term contracts, but only after usage is under control.
KPMG is blunt: solar panels on an inefficient building are lipstick on a boiler.
People Still Matter
Karčiauskas insists that the blend of AI + SEM works only if humans stay in charge. Facility managers and energy officers need to define comfort levels, set the targets, and review the dashboards. Machines then nudge sensors and thermostats in real time.
“What’s missing is a culture of active energy management. SEM lays down the rules, and AI keeps the systems running to them minute by minute, with people still in control,” he says.
It is what KPMG calls human-centric AI: a loop where algorithms handle the micro-adjustments, while people steer the bigger picture.
Continuous Efficiency, Not One-off Fixes
The message is simple. Efficiency is no longer a renovation milestone. It is a continuous management job. Exergio’s platform integrates with existing building management systems, reads occupancy and weather data, and adjusts HVAC settings in real-time. The result: savings that renew every day, not just when engineers show up with a wrench.
Or, as Karčiauskas sums up: “Our platform reflects what KPMG calls ‘human-centric AI’ that supports transparency and trust.“
The verdict from both KPMG and Exergio is that the path to net-zero does not depend on futuristic gadgets or waiting for the next round of renovations. It depends on rethinking how we manage what is already humming inside our buildings. With AI, efficiency becomes a daily ritual rather than a distant target. In a sector often accused of moving at glacial speed, that shift could be the most radical innovation of all.
