Artificial Intelligence (AI) has long been a buzzword, while at R8 Technologies it’s a reality, with tangible benefits for commercial real estate. Unlike many conceptual AI projects, R8 Technologies’ data-driven R8 Digital Operator Jenny (or R8 Jenny for short) represents a proven, human-centric AI solution.
This pioneering technology not only promises but delivers enhanced energy efficiency, significant carbon footprint reductions, and meaningful cost savings. Already active across numerous properties, R8 Jenny exemplifies how targeted AI applications can transform the real estate industry by aligning economic gains with environmental stewardship.
R8 Jenny not only transforms the operations of those who use it but also contributes to broader sustainability efforts by helping to balance the power grid. Established just seven years ago, R8 Technologies has rapidly expanded, attracting notable investors from the Baltic, Nordic, and Central Europe regions, as well as from Japan, thanks to its impressive track record. The company has consistently achieved substantial growth, with revenues increasing by an average of 2.3 to 2.5 times annually.
With a client base spanning over 200 customers in 20 countries, R8 Technologies demonstrates robust effectiveness and trust in its AI solutions globally. Among its notable clients, Ülemiste City, the largest business district in the Baltics, has benefited from R8 Technologies’ AI for several years. In 2022, this cooperation enabled Ülemiste City to achieve savings exceeding €194 500. R8 Technologies co-founder and CEO Siim Täkker told Life in Estonia that customers typically experience a return on investment (ROI) within just 2–3 months, highlighting the swift and substantial financial benefits of their technology.
AI that helps fight climate change
From the very first day, R8 Technologies has concentrated its efforts on commercial real estate. Why this focus? According to Täkker, it’s because commercial real estate is a major contributor to climate change, responsible for about 20% of global CO2 emissions. This strategic focus allows R8 Technologies to target the sector where its data-driven AI solutions can make the most significant environmental impact.
“Reducing the carbon footprint and energy consumption of commercial real estate is not just important, it’s imperative,” explains Täkker. “With increasing legislation from the European Union and global mandates such as the Paris climate agreement and the Energy Performance of Buildings Directive, there is a pressing drive to diminish energy usage and environmental impact across the sector,” he adds.
The EU legislation referenced by Täkker mandates significant reductions in energy consumption across commercial real estate by 2035, with targets varying by country; in Estonia the target is a 16% reduction. This is part of a broader initiative aimed at achieving carbon neutrality in the commercial real estate sector by 2050, aligning with global efforts to mitigate climate change impacts.
A crucial factor in achieving these sustainability goals is the digitised infrastructure supported by AI-driven solutions. R8 Technologies’ systems operate entirely without the need for additional hardware installations. Täkker notes that their advanced AI is capable of significantly reducing a building’s energy consumption and costs – by as much as 20% or more on average – through Building Management System enhancements alone.
“The return on investment for our solutions averages just two to three months,” Täkker explains. “Not only can our technology significantly reduce CO2 emissions, but it also delivers substantial financial returns for our clients.”
Täkker highlights R8 Technologies’ deep commitment to advancing AI technology, noting significant investments in research and development. The company has contributed to the field through several scientific articles focused on human-centric AI solutions for commercial real estate.
“Human-centric AI is fundamentally explainable and adaptive,” explains Täkker. “This approach ensures that every action the AI takes is transparent to stakeholders, and it customises its functionality to accommodate the specific needs of each building and the preferences of its users or tenants.”
But what exactly is R8 Jenny? R8 Jenny is a sophisticated solution created by R8 Technologies to optimise heating, ventilation, air conditioning (HVAC), and other aspects of indoor climate management. By making micro-adjustments to system settings, R8 Jenny effectively reduces both energy consumption and operational costs, streamlining building management with precision.
“I often compare it to a piggy bank – the AI meticulously collects every free cent at every opportunity,” says Täkker. “With each tiny adjustment it makes, the savings accumulate. By the end of the month, these ‘cents’ can total up to thousands, even tens of thousands of euros in energy cost reductions.”
Systems that need to talk to each otherare taught the same language
A key challenge in commercial real estate, which R8 Technologies is addressing, is that large structures such as office buildings, shopping centres, hotels, and airports often have HVAC systems that operate in isolation. These systems typically lack the capability to communicate or synchronise with one another, leading to inefficiencies and increased energy consumption.
According to Täkker, HVAC systems in large modern commercial buildings are incredibly complex, comprising thousands, if not tens of thousands, of controllable components such as pumps, fans, valves, radiators, and dampers. Each of these components can be individually regulated to optimise performance and efficiency.
The challenge with traditional HVAC systems in large buildings is that they often operate independently, following a basic set of static rules without communication between components. For example, if the temperature rises, a valve might automatically close, and vice versa. These systems lack the capability to learn from past data or predict future conditions, leading to inefficiencies and missed opportunities for energy conservation.
This is where R8 Jenny steps in to revolutionise the system. Acting as an additional software layer, R8 Jenny seamlessly integrates with all major HVAC brands like Siemens, Honeywell, and Strider Electric. Designed as a plug-and-play solution, R8 Jenny simplifies implementation – users simply grant access, and R8 Jenny takes over adaptively, considering each buildings uniqueness and enhancing the existing systems with advanced communicative capabilities that allow for more intelligent operation and energy management.
“R8 Jenny is compatible with all modern automation systems, thanks to our comprehensive suite of APIs and connectivity drivers, which we are continually expanding,” explains Täkker. “For outdated or legacy systems, we typically recommend retrofitting or updating the building management systems – a necessary step for modernisation. This ensures that every system can benefit from R8 Jenny’s advanced capabilities.”
The majority of R8 Technologies’ 200+ clients can utilise R8 Jenny right out of the box, with no need for additional hardware, thanks to its compatibility and easy integration. However, challenges arise primarily with smaller buildings that lack an existing building management system or suffer from poor installation quality. These situations often require tailored solutions to leverage R8 Jenny’s capabilities fully.
Clients from across Europe
R8 Technologies serves a diverse clientele across Europe and, thanks to a strategic partnership with Panasonic, has expanded its reach to the Japanese market. Panasonic not only collaborates with R8 Technologies but also supports its endeavours as a key investor, reinforcing the strength and potential of this alliance.
“Today, R8 Technologies manages over 4 million square metres of commercial real estate across multiple countries,” says Täkker. “While we engage in direct sales, we also have a robust network of channel partners who independently distribute our solutions. Our primary focus has always been on supporting large real estate operators and owners. As our international property owners expand, we ensure our services evolve to meet their needs wherever they go.”
R8 Technologies is actively involved in several rollouts across different countries, including a significant project with Citycon, which owns major shopping malls in Estonia. This collaboration extends to Citycon’s Nordic shopping centres, highlighting R8 Technologies’ ability to support large-scale commercial developments in various regions. These initiatives demonstrate R8 Technologies’ commitment to expanding its reach and enhancing the efficiency of commercial real estate across Europe.
When implementing R8 Jenny, customers initially set the parameters to suit their specific needs. However, the human-centric design of our system ensures that these settings are not fixed – customers can adjust the parameters at any time to better align with changing requirements or preferences. This flexibility is central to R8 Technologies’ approach, empowering users to maintain optimal control over their building environments.
“With R8 Jenny, we create a digital twin of the building, integrating all systems into a cohesive network. This allows the various components to communicate effectively with one another. Additionally, R8 Jenny is equipped with predictive capabilities, calculating the optimal time to adjust the temperature based on factors such as current electricity prices, weather forecasts, and expected building occupancy. This intelligent coordination ensures energy efficiency and operational effectiveness tailored to real-time conditions,” says Täkker.
For instance, R8 Jenny strategically manages heating schedules by turning off systems overnight when the building is unoccupied. Leveraging her advanced understanding of occupancy patterns, she ensures the heating is reactivated in time for the building to reach the desired temperature before occupants return. Additionally, R8 Jenny knows to avoid high electricity usage during peak times, contributing to grid stability and reducing energy costs.
Täkker points out that a key advantage R8 Technologies holds is the elimination of the need for additional hardware installations. This streamlined approach not only simplifies integration but also significantly contributes to the remarkably short return on investment (ROI) that clients experience.
Anyone visiting Tallinn Airport has directly experienced the capabilities of R8 Jenny, as it is one of the key facilities utilising the R8 technology. Across all its installations, R8 Technologies has made a significant environmental impact, reducing global CO2 emissions by over 66 000 tons, demonstrating the commitment to sustainability and efficient energy management.
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