BOMA Canada Report: Commercial Building Owners Slow to Adopt AI Despite Interest

Why It Matters

The slow AI uptake hampers potential efficiency gains and sustainability targets in commercial real estate, while exposing properties to cyber risk if adoption proceeds without proper safeguards.

Key Takeaways

• Only 10% of surveyed owners are piloting AI.
• Legacy buildings need costly upgrades to support AI.
• ROI uncertainty slows AI adoption in commercial real estate.
• Cybersecurity breaches highlight risks of AI-enabled systems.
• BOMA's programs aim to guide owners through AI integration.

Pulse Analysis

The commercial‑real‑estate sector is at a crossroads with artificial intelligence. BOMA Canada’s latest survey underscores that while interest is high, actual implementation lags, with just one in ten owners experimenting with AI‑driven controls. This hesitation mirrors earlier technology cycles, where early adopters reap efficiency and cost‑saving benefits, but the broader market waits for clear proof points. For investors and operators, the data signals a pending shift: as AI matures, the pressure to modernize will intensify, especially in markets where energy costs and sustainability mandates are tightening.

Key obstacles stem from the physical realities of many property portfolios. A significant share of commercial space consists of legacy buildings whose wiring, HVAC, and control systems predate digital integration. Retrofitting these assets often requires capital‑intensive upgrades, a hurdle amplified by uncertain return on investment calculations. Moreover, owners frequently lack dedicated technology teams, forcing reliance on external consultants whose fees can erode projected savings. Government incentives, such as low‑interest retrofit loans, are emerging to offset these costs, but awareness and access remain uneven across the industry.

Security concerns add another layer of complexity. Recent incidents of AI‑enabled HVAC systems being hijacked illustrate that cyber‑vulnerabilities can quickly outweigh operational gains. BOMA’s Best Smart and AI for Commercial Real Estate initiatives respond by offering structured roadmaps, best‑practice guidelines, and a focus on rigorous cybersecurity frameworks. As the sector moves toward broader AI adoption, firms that combine strategic investment, skilled talent, and robust security will likely capture the most value, positioning themselves ahead of the next wave of smart‑building transformation.