In this exclusive interview with CanadianSME Small Business Magazine, Arash Shahi, the visionary co-founder and CEO of AECO Innovation Lab, a leading force in advancing digital technology adoption in the architecture, engineering, and construction (AEC) industries. With a Ph.D. in construction engineering and a deep commitment to innovation, Arash shares insights into the challenges and opportunities of driving digital transformation in an industry traditionally resistant to change. From pioneering projects like the One Ontario initiative to embracing cutting-edge technologies such as AI-powered digital twins, Arash’s work is shaping the future of the built environment and ensuring that technology works for the betterment of all stakeholders.
Dr. Arash Shahi is the co-founder and CEO of AECO Innovation Lab, a company dedicated to advancing digital technology adoption in the architecture, engineering, and construction (AEC) sectors. He holds a Ph.D. in construction engineering and management technologies and co-founded the Building Innovation Research Centre at the University of Toronto. In 2020, Arash was honoured as one of the Top 40 Under 40 in Canadian Construction for his innovative contributions to the industry. Recognized for his ability to unite stakeholders on collaborative initiatives, he continues to drive digital transformation within the AEC industry.
AECO Innovation Lab aims to revolutionize the adoption of digital technology in the AEC and real estate industries. What are your most significant challenges in driving this digital transformation, and how are you overcoming them?
The biggest challenge in digital transformation within the AEC and real estate industries is overcoming legacy systems, regulatory fragmentation, and resistance to change. Many stakeholders operate on traditional models that lack interoperability, making seamless adoption of digital solutions difficult. Additionally, municipal and provincial regulations vary widely, slowing down the digitization of critical processes.
To address these challenges, AECO Innovation Lab is leading industry-wide collaborations that align government bodies, private sector innovators, and academic researchers in initiatives such as One Ontario. We focus on standardization, interoperability, and scalable digital solutions to ensure that innovation is accessible to all stakeholders. By working with regulatory agencies, advocating for policy reforms, and developing open digital frameworks, we create pathways for seamless digital integration across the industry.
Your organization spearheaded the One Ontario R&D initiative to streamline Ontario’s development approval process. Can you share some key insights from this project and how they might be applied to improve efficiency in other regions?
The One Ontario initiative revealed several critical inefficiencies in the development approval process, including inconsistent municipal requirements, lack of digital integration, and excessive manual processing. These inefficiencies not only delay projects but also increase costs for developers, municipalities, and homeowners alike.
One key insight is the need for a unified digital ecosystem that enables real-time collaboration among stakeholders, reducing bottlenecks. Our approach focuses on data standardization, centralized digital permitting platforms, and AI-driven automation to enhance transparency and efficiency. The best practices from One Ontario can be replicated in other regions by fostering government-industry collaboration and creating adaptable digital frameworks that accommodate regional regulatory differences. In fact, One Ontario has been engaged with the Government of British Columbia and has been consulted in development of their provincial permitting hub, which is based on One Ontario principles. Unfortunately, the Ontario government has not been able to move yet. We hope that the government acts on their new mandate and starts moving the dial on this pressing issue.
As a co-founder of the Building Innovation Research Centre at the University of Toronto, how do you see the relationship between academia and industry evolving in the AEC sector, and what role does AECO Innovation Lab play in bridging this gap?
The AEC sector is experiencing rapid technological advancements, but research-to-practice adoption lags due to industry fragmentation. Traditionally, academia has been a source of groundbreaking research, but without strong industry partnerships, many innovations remain underutilized.
AECO Innovation Lab acts as a bridge between research and industry, accelerating the commercialization of academic breakthroughs. We collaborate with universities to test and validate emerging technologies in real-world applications, ensuring that academic research leads to tangible industry impact. Our focus is on applied research, pilot projects, and direct industry-academic partnerships that translate theoretical advancements into scalable, practical solutions for the built environment.
The recent AI-Powered AECO Innovation Challenge, in collaboration with SoftTech Engineers Limited and AmpliNxt, focuses on cutting-edge areas like AI-enabled metaverse solutions and digital twins. How do you envision these technologies reshaping the future of the AEC industry?
I’m not sure who SoftTech Engineers Limited or ApliNxt are and they are not related to AECO Innovation Lab.
The convergence of AI, metaverse technologies, and digital twins is transforming the way we design, construct, and manage the built environment. These technologies create high-fidelity virtual replicas of physical assets, enabling real-time data insights, predictive maintenance, and automated decision-making.
In the future, AI-powered digital twins will drive smarter urban planning, streamlined construction workflows, and optimized asset management. The metaverse will play a key role in immersive design collaboration, remote project oversight, and AI-driven simulations for risk assessment and sustainability analysis.
Through initiatives like the AI-Powered AECO Innovation Challenge, including our Mitacs Cluster with six Canadian universities on this topic, we are not just exploring these technologies but actively piloting solutions that redefine the AEC sector’s operational efficiency, sustainability, and resilience.
To conclude, what advice would you offer to small and medium-sized businesses in the AEC sector looking to embrace digital innovation and stay competitive in an increasingly technology-driven industry?
For SMEs in the AEC sector, digital transformation is no longer optional—it is essential for survival and growth. My advice to SMEs looking to embrace digital innovation is:
- Start Small, Scale Smart – Identify high-impact areas where digital solutions can deliver immediate ROI, such as automating workflows or digitizing project management.
- Invest in Training & Talent – Digital adoption is as much about people as it is about technology. Upskilling your workforce ensures smoother transitions and better long-term success.
- Leverage AI & Automation – AI-powered tools can streamline design, optimize costs, and improve efficiency. From AI-driven project estimations to smart building systems, leveraging AI gives SMEs a competitive edge.
- Collaborate & Learn – Join industry forums, partnerships, and innovation labs to stay ahead of technological trends. AECO Innovation Lab, for example, provides SMEs with access to cutting-edge research, pilot programs, and networking opportunities.
- Embrace Digital Twins & BIM – Implementing digital twin technology and Building Information Modeling (BIM) helps improve decision-making, project coordination, and asset management.
The key is to adopt a mindset of continuous innovation and actively seek opportunities to integrate technology into daily operations. By doing so, SMEs can enhance efficiency, reduce costs, and remain competitive in an evolving industry.
The post Digital Pioneers for the Built Environment: AECO Innovation Lab first appeared on CanadianSME Small Business Magazine.