Artificial Intelligence and the Construction Industry

Typically, when one thinks of artificial intelligence (AI), computers using algorithms and data manipulation come to mind. Interestingly, the construction industry, which has traditionally been viewed as heavily labor dependent, has been increasingly utilizing advanced technologies driven by AI. However, given the early stage of this technology, the question remains: how it will apply to your work and will it result in a safer and more cost-effective project?

One main concern on any project is how to best mitigate risk while maintaining profitability. Design issues and inaccurate bid estimates have typically plagued projects in this regard. That said, having the right project management team and software in place is essential to reducing risk. AI is becoming increasingly used by programs to aid in optimizing project layout and with creating predictive modeling for material prices and scheduling. This helps with efficiency of project phasing, potential bottlenecks and assists with having early knowledge of potential pricing issues when material supply chain issues arise.

Equally as important on any project is maintaining an adequate workforce. Wearable technology is being used to understand where the workforce is located and to display the work being performed in real-time. This not only helps from a scheduling and workflow perspective but also allows the end user to better understand safety issues that may arise and how to better address overall project security. Ultimately, this reduces administrative processing time and project delays. In fact, Deloitte predicts that savings from data analytics and related technologies in this category may equate to a reduction in 10-15% of overall construction costs.

Aside from planning and labor issues, and although arguably in its early stages, automation has become more prevalent on construction projects as well. Automated concrete pouring and 3D construction are some of the new technological advances which not only construct with a great level of precision, but reduce time and costs associated with comparable manual labor. Although these technologies may not be right for every project, they are paving the way for further advances in the industry. Likewise, drone technology is being used to survey project sites and to provide real time monitoring of the progress of your project without the need for having “feet on the ground,” further reducing labor costs.

Conclusion

As always, implementing new technologies with predictive capabilities does not happen overnight. Project teams should develop a strategy as to how best to introduce certain applications based on your specific project needs and size. Start small, perhaps with a pilot program and identify what data would be most useful to you for the success of the project. As your needs change, scale the use of such technologies accordingly. Finally, and not surprisingly, project communication is key. Ensure, your team understands what technologies are being implemented and how that information will be utilized so as to produce the highest return on investment.

For more information or to discuss any of these topics, please contact Pat Johnson a member of Honigman’s Real Estate Services Practice Group.