Cutting-edge tools like the Internet of Things (IoT), artificial intelligence (AI), and smart building systems are increasingly integral to optimising facility operations and enhancing occupant experiences. This shift is not only making buildings “smarter” and more efficient, but it’s also reshaping the role of the facilities manager. In parallel, these advancements bring new challenges – as businesses adapt to this rapidly evolving landscape. In this insight article, we explore how IoT, AI, and smart buildings are changing FM, why today’s facilities managers need to be digitally savvy (for tasks like predictive maintenance and energy efficiency), and how employers can hire or develop teams with these emerging skill sets.

Smart Buildings and IoT

IoT has moved facility management from the era of clipboards and reactive fixes into a new era of smart, proactive maintenance. In practical terms, this means networks of sensors are embedded throughout modern facilities – monitoring everything from energy consumption to equipment performance and space utilisation in real time. These sensors feed data to building management systems (BMS), enabling facilities managers to detect issues early and respond before they escalate.

For example, IoT sensors can continually track HVAC performance and trigger alerts when performance drops or a component needs service, allowing maintenance to be scheduled predictively rather than after a breakdown. This predictive maintenance approach minimises unexpected downtime and repair costs by addressing potential failures in advance.

Smart building technologies are also delivering major gains in energy efficiency, a core focus for FM today. Sensors can detect occupancy and automatically adjust lighting and climate settings – think of an office where lights dim when rooms are unoccupied and AI-driven HVAC systems fine-tune temperatures based on usage patterns. These are not futuristic concepts; they’re happening now in connected facilities. By eliminating energy waste and optimising resource use, IoT-based energy management solutions have been shown to cut energy consumption by up to 30% while also reducing greenhouse gas emissions. In short, IoT and smart building systems allow facilities teams to do more with less: more insight into building operations with less manual effort and waste. The result is a shift from reactive maintenance to proactive, data-informed facilities management that drives cost savings and sustainability improvements.

AI and Data Analytics in FM

If IoT provides the eyes and ears of a smart building, AI and data analytics are the brain that makes sense of all the information coming in. Modern facilities managers are now leveraging AI-driven analytics to sift through vast streams of sensor data and building information, uncovering patterns and insights that humans might miss. In fact, continuous data analysis of building operations is emerging as a game-changer, giving rise to what some experts call “living intelligence” – systems that learn and adapt through AI integrated with advanced sensors. This convergence allows buildings to essentially “learn” from their data over time, leading to outcomes like increased workflow efficiency, reduced operational costs, and better sustainability performance.

One of the most powerful applications of AI in FM is enhancing maintenance strategies. AI-powered predictive analytics can crunch historical maintenance records alongside real-time IoT sensor data to predict equipment failures before they happen. For example, machine-learning algorithms might analyse vibration and temperature readings from an air handling unit and forecast that a failure is likely in two weeks – giving the facilities team a chance to replace a part during scheduled downtime rather than deal with an emergency outage. This proactive approach not only minimises downtime but also extends the lifespan of critical assets and cuts maintenance costs in the long run.

Beyond maintenance, AI and data analytics are helping facilities managers make smarter decisions in areas like space utilisation and energy management. Analytics software can process occupancy data to identify underused spaces, leading to office layout changes or hybrid work solutions that maximise usage. Energy management platforms, fed by AI insights, can dynamically adjust systems for optimal efficiency (for instance, powering down HVAC in sections of a building that sensors show as empty). Facilities teams are increasingly expected to derive meaningful insight from large volumes of information to support strategic decisions. Data has become an invaluable asset in FM. As we (MostonRECRUIT) usually state:

Today’s facilities managers are expected to harness data, turning insights into smarter operations, measurable efficiency gains, and clear evidence of performance impact.

In practice, this means FMs are using dashboards and analytics tools to turn raw data into actionable improvements – a critical shift in how facility performance is managed and optimised.

Digital Skills: The New Core of FM Roles

The rise of IoT, AI, and smart building systems is fundamentally changing what it means to be an effective facilities manager. No longer is FM work limited to fixing boilers and managing janitorial contracts behind the scenes; facilities managers must be equal parts technician, analyst, and strategist. As the built environment becomes more complex and interconnected, the role and expectations of FM teams are evolving accordingly. Facilities managers are still keeping the physical operations running day-to-day, but they’re now also analysing building data, leveraging technology platforms, and driving initiatives like sustainability and occupant experience that align with broader business goals. In other words, digital savvy has become a core requirement on top of traditional FM know-how.

In fact, industry surveys confirm that employers are seeking these new competencies. In CBRE’s 2023 client survey, there was a notable increase in clients listing data literacy as a core skill they expect facility managers to have on their sites. Hard technical skills (like understanding building automation systems or data analysis) are being valued alongside soft skills (like communication and leadership) more than ever. To put it simply, the skill profile of the optimal facilities management professional is broadening. Key skill areas now in high demand include:

• Digital Fluency: Comfort with smart building technologies and software – branching across from IoT sensor platforms and Building Management Systems (BMS) to Computerised Maintenance Management Systems (CMMS) and analytics dashboards. A top facilities manager today is technologically aware, possessing knowledge of intelligent building systems, IoT platforms, and even AI applications in FM.

• Data-Driven Decision Making: The ability to interpret and act on data to improve building operations. Facilities managers are expected to collect and analyse metrics on everything from energy usage to space occupancy, and use those insights to drive efficiency and value. Being data-driven means using evidence (e.g. trend analyses, KPIs) to guide maintenance schedules, optimise cleaning routes, cut energy waste and more.

• Strategic & Sustainability Focus: An understanding of how FM initiatives tie into broader organisational goals, such as cost savings, business continuity, and sustainability targets. Modern FMs are strategically focused, integrating FM tactics with the company’s mission – for instance, contributing to net-zero carbon goals through energy management, or boosting workforce productivity through better workplace experiences.

• Collaboration and Communication: Working effectively with other departments like IT, HR, and sustainability teams to implement new technologies or processes. Introducing smart building systems often requires a collaborative approach, so being a collaborative leader who can bridge facilities management with technology and people-focused teams is a valuable trait.

These competencies underscore that facilities management is becoming a more knowledge-driven, tech-enabled profession. The facilities manager of the future is expected to be as comfortable reviewing an analytics dashboard as performing a building walk-through. This blending of skill sets ultimately positions FM professionals not just as problem-fixers, but as data-savvy business partners who contribute to strategic decision-making and innovation. Little wonder, then, that talent with this mix of skills is in high demand.

Hiring for a Tech-Savvy FM Team

For employers in the FM sector – especially in the UK, where the industry is projected to grow by roughly 18% by 2027, creating many new jobs – the challenge is finding and developing facilities professionals with the right digital skill sets. The current talent shortage and skills gap mean organisations must be proactive and creative in building a tech-savvy FM team. Talent attraction, training and upskilling have never been more important in facilities management, as one report bluntly concluded. So how can employers ensure their facilities management function keeps up with the pace of technological change?

Firstly, investing in upskilling your existing FM staff is vital. The best facilities teams often combine experienced hands who deeply understand your buildings with new tools and techniques to work smarter. Providing training and certifications in areas like IoT systems, data analytics, or energy management can turn veteran facilities managers into digital champions. Whether it’s sending team members to learn a new Computer-Aided Facilities Management (CAFM) software or hosting workshops on data-driven maintenance planning, enabling continuous learning will pay off. As one industry observer noted, training current employees to use advanced tools like IoT and AI proficiently is crucial – and showcasing the innovative tech your organisation uses can even help attract tech-savvy new staff to your team. In other words, fostering a culture of technology adoption and learning not only upgrades your workforce’s skills but also signals to prospective hires that your FM department is forward-thinking and worth joining.

In parallel, companies should consider broadening their recruitment approach to bring in fresh talent equipped with digital skills. This might include hiring graduates with education in facilities management or engineering who are fluent in smart building concepts, or recruiting from adjacent industries (like IT or data analytics) for roles that blend tech and FM expertise. Some organisations are expanding apprenticeship and early-career programs to increase the pipeline of young professionals in FM – a strategy recommended to help close the skills gap. It can also be wise to work with specialised recruitment partners or talent solutions providers who understand modern FM skill requirements, such as MostonRECRUIT, ensuring that candidates’ digital competencies (like experience with BMS software or analytics projects) are vetted in the hiring process. Ultimately, prioritising candidates who demonstrate both traditional facilities knowledge and a willingness to embrace new technology will set your team up for long-term success.

Finally, leadership should reinforce that technology in facilities management is not about replacing people, but empowering them. When employees see that IoT sensors or AI analytics make their jobs safer, easier, and more impactful (rather than fearing job loss), they are more likely to champion these tools. Employers can cultivate buy-in by involving facilities staff in tech adoption decisions and highlighting success stories (e.g. “Using predictive analytics reduced our emergency repairs by 20% this year”). By building a team culture that values innovation, businesses ensure that their FM workforce grows alongside the technology. The bottom line is that hiring or developing digitally savvy facilities managers is now a business imperative. Those that act now to bridge the tech skills gap – through training programs, savvy recruitment, and a consultative approach to talent – will be best positioned to harness the full potential of smart buildings and data-driven facilities management.

The future of facilities management is undeniably smart, connected, and data-centric. IoT sensors, AI analytics, and intelligent building systems are no longer fringe concepts but core tools of the trade, reshaping FM roles in the process. Facilities managers who once focused solely on the physical nuts-and-bolts must now also command digital competencies, from interpreting energy dashboards to deploying sensor networks. This fusion of skills enables FM teams to achieve transformative outcomes – predictive maintenance that prevents costly downtime, energy efficiency gains that support sustainability and save money, and workplace environments that seamlessly adapt to occupants’ needs. For organisations and FM leaders, the mandate is clear: embrace the technology and invest in the people who can make it work for you. By cultivating a digitally savvy facilities team – through upskilling initiatives and smart hiring – companies can future-proof their operations and unlock new levels of performance. The “smart FM” era is here, and those who leverage IoT, AI, and analytics effectively will not only keep the lights on but also drive strategic value in tomorrow’s buildings.