(MENAFN- afrinislampanasian) Date: Dubai, UAE, May 20, 2024
News Highlights:
1. Profit Increase: Kaizen AI, an AI-based design optimization engine, achieves an average profit increase of 10.46% per project, with each project delivering an average increase of US$36 million in profits without compromising design integrity.
2. Tangible Profits: Over 150 projects were successfully optimized, resulting in a cumulative profit increase of US$5.4 billion.
3. Regional Expansion: Kaizen AI has expanded its operations to Muscat, Oman; Riyadh, Saudi Arabia, where it is engaged in one of the largest projects in the world; and multiple projects in Dubai and Ras Al Khaimah.
4. Government Interest: The company has garnered interest from large government organizations seeking to implement AI-driven solutions.
Kaizen AI, the pioneering force in real estate optimization powered by artificial intelligence, continues to redefine the landscape of the GCC real estate market, achieving remarkable milestones in profitability and innovation. With a track record of surpassing US$5.4 billion in tangible profitability across over 150 projects, Kaizen AI remains at the forefront of driving efficiency and excellence in large-scale building projects across the Middle East.
Kaizen AI's innovative approach to real estate optimization has transformed traditional paradigms of project development. By harnessing the power of artificial intelligence, Kaizen AI empowers developers to maximize profitability while maintaining a focus on sustainability and environmental impact. Through advanced algorithms and data-driven insights, Kaizen AI provides developers with unparalleled opportunities to optimize costs, streamline operations, and deliver projects on time and within budget. It achieves this by increasing salable area within the same FAR by optimizing common areas and parking areas, reducing structural sizes, and enhancing efficiency while respecting original designs and local regulations.
In the pursuit of excellence, Kaizen AI has achieved significant milestones and expanded its operations to key cities in the GCC region. The demand for AI-driven solutions has driven Kaizen AI's footprint to extend to Muscat, Oman; Riyadh, Saudi Arabia; and multiple projects in Dubai and Ras Al Khaimah. This expansion highlights Kaizen AI’s success and contribution in transforming the GCC’s burgeoning real estate landscape.
Case Study 1: Structural Optimization on a Dubai Residential High Rise
In a complex development involving two residential towers of 34 and 38 storeys, with some apartments already sold, the design team faced significant constraints. These constraints dictated that no changes could be made to the typical floor plans of the residential levels. The challenge was to achieve cost optimization despite these restrictions, particularly since the building design included retail space on the ground floor, followed by five levels of parking podiums, then the residential floors. A key architectural feature of this design was the use of 12 large transfer girders, varying in depth from 1.5m to 3m, necessary to support large span spaces totaling 5,500 sq.ft of retail area along the road and 722 parking spaces above. Leveraging advanced AI-driven design solutions and in collaboration with our U.S.-based structural engineering partners, known for their involvement in high-profile projects like the peer review of Burj Khalifa and the design of the world’s tallest building in Saudi Arabia, we innovatively eliminated the need for transfer girders altogether. This modification not only preserved the integrity of the original design but also significantly reduced steel consumption by approximately 1.2 kg/sq.ft. The result was a direct, tangible cost reduction totaling nearly 17 million Dirhams. This case study highlights the power of integrating AI technologies in structural engineering, offering unprecedented cost-saving opportunities while adhering to stringent design constraints. This transformative approach demonstrates a successful model for large-scale developments, providing a one-stop, success-fee-based solution previously unavailable in the region.
Case Study 2: Enhancing Project Value in Jumeirah Village Circle (JVC)
A developer in the UAE leveraged Kaizen AI not just as a tool for optimizing costs and revenue, but as a strategic instrument to significantly enhance project value. Faced with the challenge of developing a 20-storey residential building in JVC, the initial design incorporated a mix of studios, 1-bedroom apartments, and 2&3-bedroom duplexes. Due to the location and apartment mix, smaller units commanded a price premium of 30-40% over the larger units. However, accommodating the larger units was problematic due to parking limitations within the constrained construction area and predefined slab extensions. By deploying Kaizen AI, the developer was able to reconfigure the project exclusively for studio and 1-bedroom units, while simultaneously increasing parking efficiency by 18%—from 250 to 322 parking spaces—without altering the number of slabs or the slab outline. This adjustment not only met the local zoning requirements but also allowed the number of apartments to surge from 172 to 287, all within the same floor area ratio (FAR) and without additional construction costs. The result was a dramatic increase in profitability. The project's profitability soared by approximately 22.5 million Dirhams, marking an overall profit increase of over 14%. This case illustrates how Kaizen AI can be used as a strategic tool to unlock substantial financial gains and optimize development parameters, proving its value beyond mere cost and revenue management.
Mr. Jay Shah, Founder and CEO of Kaizen AI, said, "Our relentless pursuit of innovation and excellence has propelled Kaizen AI to unprecedented heights in the GCC real estate market. Surpassing the US$5.4 billion profit milestone delivered to our clients is a testament to the transformative power of AI-driven solutions in revolutionizing large-scale building projects. Two things that separate us from others are the ability of our AI-based platform to run 10,000 iterations of optimizations on any given design and deliver the updated optimized design in one week rather than months. The other is we work on a success fee-based model, taking a percentage of tangible profitability added in a project, aligning us with our clients' interests. We remain committed to pushing the boundaries of what's possible, driving efficiency, sustainability, and profitability in the industry."
At Kaizen AI, innovation and excellence are ingrained in our DNA. We are committed to pushing the boundaries of what's possible in the real estate industry, constantly seeking new ways to improve and optimize large-scale building projects. Through strategic partnerships, cutting-edge technology, and a relentless pursuit of excellence, we remain dedicated to driving innovation and transformation in the real estate industry for years to come.
As Kaizen AI continues to expand its presence in the GCC region and beyond, we remain steadfast in our mission to revolutionize the way large-scale building projects are conceived and executed. With a focus on innovation, efficiency, and sustainability, we are shaping the future of the real estate industry, one project at a time.
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