In venture activities in built environments, the second quarter of 2025 saw a significant year-on-year increase, with AI and machine learning startups accounting for nearly 70% of transactions.
Builtworlds' latest quarterly venture report shows that overall inflows rose by $1.7 billion (75.2%) to $3.96 billion compared to the second quarter of 2024.
Meanwhile, trading volumes rose 41% from 113 to 159.
Of these, 110 transactions included startups identified as AI or machine learning driven (ML).
“Both (trading) and capital inflows will be at a pace in 2025 (trading) and capital inflows that will exceed 2024 levels,” the report reads, making it clear that growth is occurring “despite the economic headwinds from high interest rates and harsher liquidity.”
This pace is particularly impressive considering 2024 was a record year, both in terms of trade numbers and inflows, Builtworlds said.
Artificial intelligence was the driving factor in the year-on-year increase in venture investment activities
Of the $3.96 billion invested in environmental technology startups built in the second quarter of 2025, approximately 68%, or $2.71 billion, flowed into companies that integrate AI/mL into their products or operations.
You can also see these technologies pop up all over the construction world track (i.e. building technology, construction technology, infrastructure tech) in the major built environment technology sector, but it appears to be more suitable for AI (at least for the present time) than other technologies.
“It appears that AI has found a solid foothold in the built environment, particularly in the construction technology sector where a large portion of AI-related VC funding has been completed,” writes Max Quertermus, senior venture and investment analyst, author of Bultworlds and the report.
“With a wide range of applications across project management, workforce management, accounting and payments, advanced equipment and robotics, the sector is ripe for opportunities for AI startups.”
The construction technology sector has passed over $100 million in the infrastructure technology sector, seeing more than double the flow of building technology. Still, all three sectors are seeing growth in AI technology.
“The Construction Technology sector says that capital inflows to AI/ML startups are relatively low than construction and infrastructure technology.
Other construction industries want to embrace the benefits of AI
In infrastructure technology, AI is less noticeable than construction technology, but there is clearly a desire for this technology.
“In the energy and utility sector, AI/ML will enhance operations through seamless integration of smart grids, predictive maintenance and renewable energy,” wrote Quertermus, adding that AI also has considerable applications for asset health management across the infrastructure industry.
“AI/ML enables data-driven diagnostics, supports predictive and normative analytics, enabling organizations to predict problems and optimize performance.”
This report refers to examples of geospatial information systems and mapping as ripe opportunities for AI/ML integration, specifically to techniques for processing and interpreting data.
Whether the influx of interest in AI/ML technology in a built environment remains a result of Spike's excitement towards its potential or sustainable interest, BuildWorlds said.
However, the data shows that the size of the transaction appears to have normalised over the past four years.
