The Next Phase of Smart Buildings Is About Outcomes

Over the past few weeks, I had the opportunity to attend both NexusCon in Detroit and CREtech New York. While the events approached real estate technology from different perspectives, one shift stood out to me: The conversation is moving from what technology can do to what operational outcome it can improve.

AI, cybersecurity and automation were major topics at both events. But underneath the technology discussion was a growing focus on practical results: saving skilled labour time, simplifying operations, resolving problems faster and getting more value from the technology already in buildings. As I think about where the smart building industry is headed next, a few themes stood out. 

AI in smart buildings becoming the means, not the outcome

Nexus Labs made an interesting observation in its post-NexusCon newsletter: only 20% of this year’s Demo Stage submissions were directly related to AI. AI hadn’t disappeared. In their words, it had “faded into the background.”

That matched what I heard at NexusCon. There was clear fatigue around adding another AI chatbot or AI feature simply because the technology is available. The more interesting conversations were about embedding AI into existing workflows, using relevant building data and helping people make better or faster decisions.

At CREtech, AI was much more in the foreground. It was being discussed across the broader real estate lifecycle, from property and building management to leasing, investment and development.

The tone was different, but it reinforced an important question: where does AI actually improve the way work gets done? The market isn’t losing interest in AI. It’s becoming more demanding about what AI actually accomplishes.

Why digital infrastructure matters more than the application

Another interesting NexusCon discussion centered on whether building owners will continue to buy applications or increasingly use AI to build more of their own tools. I don’t think there’s a simple answer. But either path depends on something more fundamental: having useful, structured and accessible data.

For connected buildings, that also means having the infrastructure that allows systems, devices and applications to communicate reliably. As we’ve written about before, AI needs a digital foundation. Automation needs connected systems. Analytics need reliable inputs. As the application layer evolves faster, the digital foundation underneath it becomes more important, not less.

OT cybersecurity: Finding a problem is only useful if you can act on it

Cybersecurity was another major topic at NexusCon. As more operational technology (OT) becomes connected, detecting potential issues is only part of the challenge. Building teams also need enough context to understand what is affected, where it is and what needs to happen next.

Nexus Labs described one of the recurring themes across this year’s demos as closing the loop from “found problems” to “fixed problems.” I think that distinction is important.

Our own Demo Stage presentation on TrueView demonstrated this by moving from a portfolio-level view of an OT security issue down to the building-level context needed to help address it. The focus wasn’t simply on identifying an issue. It was on giving the people responsible for the building enough context to act on it. The demo went on to be voted Most Innovative Demo of the night.

More alerts don’t necessarily create a better-operated or more secure building. Better context can.

The next phase of smart buildings is about outcomes

NexusCon and CREtech reinforced just how quickly real estate technology is evolving, even if the two events approached that evolution from different perspectives.

AI is becoming more capable. Cybersecurity tools are becoming more sophisticated. Automation is expanding. Building systems are becoming more connected. But for those responsible for building infrastructure and operations, I think the questions are becoming much more practical.

Does the technology save time? Does it help teams resolve problems faster? Does it reduce operational costs? Does it make increasingly complex buildings easier to operate?

Buildings operate for decades, while technology is constantly changing. For me, that reinforces something we’ve believed at Andorix for a long time: individual technologies matter, but so does the digital foundation connecting them and how that foundation is managed and how it evolves over the life of the building.

The next phase of smart buildings won’t be defined by how much technology gets deployed. It will be defined by how effectively we put that technology to work.

I’d like to hear what you’re seeing in your own portfolio. Where is technology making operations easier, and where is it adding more work? Connect with me on Linkedin or reach out to the Andorix team to continue the conversation.