Deconstruct Live at The Real Deal's Miami Forum: Meet Kaizen AI
Dec 18, 2023
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Live at The Real Deal's Miami Forum, the founders of Kaizen AI, Jay Shah and Kashyup Shah, discuss their platform that uses AI to optimize building designs for profitability and environmental impact. They share examples of successful projects and address the challenge of convincing developers of AI's value.
Kaizen AI uses artificial intelligence to analyze building designs and retrofits them for maximum profitability.
The early adopters of AI in the construction industry can reap significant benefits and shape the future of the field.
Deep dives
Kaizen AI: A Value Optimization Platform for Construction Projects
Kaizen AI is a value optimization platform that aims to increase profitability and reduce environmental impact in construction projects. By analyzing building designs, Kaizen identifies areas where wastage can be reduced, resulting in cost savings and greater efficiency. The platform has been active for five and a half years and has successfully helped developers optimize their projects. For example, in a residential project in Mumbai, Kaizen was able to increase profitability by $55 million by reducing common areas and improving parking efficiency. In another project in Dubai, Kaizen eliminated all structural pillars, resulting in cost and time savings as well as reduced material usage. The environmental benefits of Kaizen's optimization approach include lower embodied carbon and reduced landfill waste.
Developers' Reception to AI Integration and Opportunities
Many developers have been receptive to integrating AI into their projects. While there is sometimes skepticism about the potential benefits, once developers see the cost savings and increased efficiency that AI can bring, they become more interested. Moreover, AI is seen as an opportunity rather than a threat, as it can help developers stay ahead of competitors and achieve better results. However, there are still concerns and misconceptions about AI, and it is important to address these and highlight the potential for positive outcomes. Overall, the early adopters of AI in the industry are likely to reap significant benefits and potentially shape the future of the field.
Kaizen's Launch in North America and its Success Fee Model
Kaizen is planning to expand its operations to North America using a similar model that proved successful in the Middle East. With a quick turnaround time, Kaizen offers a success fee-based model to demonstrate the profitability of an optimization exercise within the first week. By working with realtors and super connectors, Kaizen aims to build credibility and amplify its outreach. The founders' background and familiarity with the US market add credibility to their operations. Kaizen is excited about the potential growth opportunities in North America, particularly in markets like Miami with significant construction activity.
In early November, the Deconstruct team flew to Miami for The Real Deal's annual showcase and forum. We're bringing you an interview we did live with the founders of Kaizen AI, Jay Shah and Anuj Shah. Kaizen uses artificial intelligence to analyze building designs, then retrofits them to be the most profitable project for any given space, taking developer wants into account.
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