In the dynamic landscape of the construction industry, the intersection of sustainability and technology is increasingly becoming a focal point for investors and industry leaders alike. The recent insights from family offices in Singapore and the wider Asia region, as highlighted by LH Koh, managing director and head of global family and institutional wealth at UBS, underscore a significant shift towards artificial intelligence (AI) as a key investment theme. This trend is not just about financial gains; it’s about leveraging AI to drive sustainable practices and innovative solutions in construction.
Koh’s observations from the CONVERGE LIVE event in Singapore reveal a growing enthusiasm among family offices for AI, with more than three-quarters of them keen to invest in generative AI within the next two to three years. This enthusiasm is driven by the potential of AI to revolutionize various sectors, including construction, by enhancing efficiency, reducing waste, and promoting sustainable practices. The integration of AI in construction is already yielding tangible results, from predictive maintenance and real-time data analysis to the development of smart cities and green building projects.
Tuck Meng Yee, founder and partner at JRT Partners, a single-family office, echoes Koh’s sentiments, highlighting the importance of data classification in the AI theme. Yee’s investments in companies like Cognaize and Consai underscore the growing intersection of AI and construction technology. Cognaize, an Armenian software development firm, and Consai, a construction tech firm with offices in Qatar and Poland, are at the forefront of leveraging AI to enhance construction processes. These companies are not just about technological advancements; they are about creating sustainable solutions that minimize environmental impact and maximize resource efficiency.
The trend is not limited to Singapore or the wider Asia region. In China, the emergence of companies like DeepSeek has positioned the country as a leader in AI innovation. Srihari Kumar, founder of single-family office LionRock Capital, notes that China’s AI sector is “quite exciting,” despite recent economic challenges. The Chinese government’s stimulus measures to boost the economy and tech sector have reignited investor interest, with family offices increasingly looking to reinvest in China. Kumar’s shift in portfolio allocation, from a focus on the United States and India to a greater emphasis on China, public markets, and the technology sector, reflects this growing trend.
The implications for the construction industry are profound. As AI continues to permeate the sector, it is poised to drive a new era of sustainable development. AI-powered tools can optimize resource use, reduce carbon footprints, and enhance the durability and efficiency of construction projects. This is not just about building structures; it’s about creating sustainable, resilient urban environments that can adapt to the challenges of climate change and urbanization.
However, the integration of AI in construction also raises critical questions about data privacy, ethical considerations, and the potential for job displacement. As the industry embraces these technologies, it must also address these challenges to ensure that the benefits of AI are equitably distributed and that the transition is managed responsibly.
The construction industry stands at a crossroads, where the convergence of sustainability and AI offers unprecedented opportunities for innovation and growth. As family offices and investors increasingly focus on AI, the sector is poised to undergo a transformative shift. The challenge for industry leaders is to harness the power of AI to create a more sustainable future, one that balances economic growth with environmental responsibility and social equity.
