AI is revolutionizing the construction industry

Artificial intelligence (AI) has arrived in the construction industry, promising to revolutionize it. From preconstruction to site safety, the construction industry is using more AI technology to facilitate the various stages of the construction process.

Why it matters: As we delve into this new era of construction technology, it's important to comprehend AI and its potential to enhance industry productivity and performance.

AI, comprises computer systems that perform intricate tasks like reasoning, decision-making or problem-solving, traditionally done by humans, is used in various industries. Recently, the construction industry has increased its use of AI-based tools and techniques in workflows and construction processes.

AI in Preconstruction

The preconstruction process in commercial construction aids in timely, budget-friendly project completion that meets client satisfaction by outlining the necessary sequence of personnel and events.

"Various forms of AI software exist at the general contractor (GC) and subcontractor level," said Chris Ring of NACM's Secured Transaction Services (STS). "Mostly for plans and specifications to get a clear picture of the project before construction begins."

AI in the pre-design or initial project planning and development phase is helpful for feasibility studies to determine if a project is viable, reads a Construction Connect article. "AI-based tools can be used to automate the process of extracting, analyzing and processing data from construction documents. For example, natural language processing (NLP) can be used to analyze project requirements and create a detailed project scope document based on two-dimensional construction plans like PDF files."

NLP, a subset of AI, can convert complex legal jargon into plain language, making contracts more accessible to non-legal professionals. It can also be used to automate many of the tasks involved in manual contract review, such as identifying key clauses, identifying risks and comparing contracts. This allows legal professionals to concentrate on intricate and strategic tasks. Moreover, NLP enhances inter-party communication, minimizing dispute possibilities.

Beyond preconstruction, AI is increasingly used in other construction areas to enhance performance and safety.

• Predictive maintenance: AI can analyze data from building systems, such as HVAC and electrical systems, to predict when maintenance will be needed and prevent equipment failure.
• Site safety: AI-powered cameras and sensors can monitor construction sites for potential safety hazards and alert workers and managers to potential dangers.
• Robotics: With machine learning, AI can assist in bricklaying, welding and building with 3D printing.
• Project management: AI can optimize the allocation of labor and materials, making the scheduling of construction tasks more efficient and cost-effective.
• Quality control: AI-powered cameras and sensors can monitor the quality of construction work, identify defects and alert workers and managers to issues that need to be addressed.
• Building performance: AI can analyze data from building systems to optimize energy efficiency, indoor air quality and other performance metrics. Simulating building efficiency with AI, for instance, allows the identification of potential energy-depriving areas for better design and construction.

Risk Mitigation

From safety hazards, quality issues, delays and cost overruns, construction sites are prone to risk. The larger the project, the greater the risk, due to the numerous subcontractors concurrently working at job sites. By leveraging artificial intelligence, GCs can monitor and mitigate risk instances on the job site, allowing the project team to focus on their core functions.

What they're saying: "AI algorithms automatically prioritize issues based on unsafe scaffolding, waterlogging, and personnel lacking essential protective equipment like gloves, helmets and safety glasses," reads a report by Appinventiv. "It empowers contractors to prioritize projects based on risk rankings and proactively address potential safety concerns."

Construction Contracts

AI is revolutionizing the way construction contracts are managed and executed in the following ways, according to Black Boiler:

• Enhanced contract review and management: AI-driven contract analysis tools can automate the review process, allowing for faster and more accurate contract assessments.
• Predictive analytics for risk mitigation: AI can analyze historical data, project-specific information and external factors, predicting potential risks in construction contracts.
• Smart contract automation: Smart contracts, powered by blockchain technology and AI, can enforce terms and conditions, ensuring that all parties adhere to the agreement. For example, payments, timelines and milestones can be automated, reducing the need for intermediaries and enhancing transparency.
• Improved decision-making: In construction contracts, AI can assist in decision-making processes by offering data-driven recommendations. For instance, it can help with selecting the most cost-effective suppliers, optimizing resource allocation and managing project timelines more efficiently.
• Real-time monitoring and reporting: AI-powered systems monitor the progress of construction projects in real-time. If any deviations from the contract occur, AI can alert project managers and stakeholders promptly, enabling them to take corrective actions promptly.
• Environmental and regulatory compliance: AI can help construction firms avoid costly fines and delays due to regulatory violations.

Yes, but: Despite the marked rise of AI within the construction industry, it will take some time before relevant legislation and regulations are established. Moreover, the use of AI has not yet permeated the field of B2B credit.

Martin Smith, CCE, CICP, credit manager at Ash Grove Cement Company (Sumterville, FL), said he's used ChatGPT for researching customers and composing collections letters but has not come across AI in construction. "I suspect that AI has already influenced reports that I receive from D&B, Cortera and NACM," he said. "I know that advanced analytics will be in place with the next A/R software upgrade."

The bottom line: AI is revolutionizing the construction industry by enhancing preconstruction planning, site safety, predictive maintenance, project management and contract execution while also aiding in risk mitigation and regulatory compliance.

-Jamilex Gotay, editorial associate