As the construction sector begins to fully embrace artificial intelligence (AI) technologies, Deltek’s Neil Davidson explores the associated obstacles and benefits
Our research revealed that nearly all firms surveyed (99%) are utilising artificial intelligence (AI) and machine learning, with 92% warmly embracing generative AI technologies. The shift from experimental AI adoption to practical, everyday application is helping firms navigate complex project data to make more informed decisions due to efficiencies such as enhanced predictability.
However, whilst adoption is becoming widespread, the next step for organisations is to take a purposeful and human-first approach to harness AI’s full potential. Deployed strategically with proper oversight, AI can give firms a competitive edge, unlocking new revenue streams that drive growth and profitability.
Practical applications drive value
Applications are increasingly focussed on core construction challenges. Our research found that 46% of firms are using it to analyse photographs, videos or 3D scans, whilst 42% of firms are using AI to predict project outcomes and 39% for automating business processes. To truly differentiate and drive innovation, however, firms may want to consider expanding AI use beyond basic productivity into more ambitious areas, such as developing new services and solutions.
The driver behind adoption, according to 77% of surveyed firms, is the belief that AI will help expand services and gain a competitive edge. Nearly three-quarters (73%) say successful implementation will provide significant competitive advantage, signifying an inflection point where AI has transitioned from exploration to application across construction operations and project delivery.
Addressing implementation challenges of AI in construction
Despite the clear indication of enthusiasm, nearly half of firms surveyed (53%) struggle to prioritise which AI technologies are most applicable to their business. Having a clear strategy in place, and a view of the benefits and goals, is essential to guide organisations to success with their AI journey.
More than half (54%) cite the high cost of technology as a barrier to adoption. However, this perceived high-cost hurdle can be mitigated by exploring flexible financing options and phased implementation strategies, allowing businesses to invest gradually as they realise initial AI benefits.
The skills gap presents another hurdle, with just under half of all firms (49%) facing a lack of employee education about tech trends and how to apply them. To overcome this, companies will need to invest in robust training programmes that provide ongoing learning to ensure that staff are being continuously prepared for the latest AI advancements and practical applications such as machine learning and predictive analytics. To accelerate implementation, firms can lean on external expertise through strategic partnerships and off-the-shelf AI solutions.
There are many technologies that have faced such constraints and gone on to prosper. And emerging technologies such as AI are no exception to the rule as they continue to show huge benefits within the construction industry. Firms that have successfully implemented AI are experiencing enhanced project timeline delivery and improved operational efficiency. Additionally, those who have integrated AI into their workflow report reduced overhead costs and improved internal organisational communication. These tangible outcomes demonstrate why so many construction firms believe successful AI implementation provides a significant competitive advantage. For many, this has catalysed investment in project lifecycle technologies and processes.
The route forward
Looking ahead, the early movers who are able to integrate AI into project lifecycles will reap the short and long-term benefits such as streamlined operations, optimised resources, and proactive risk mitigation, helping to maintain a competitive edge. And for many construction firms, the project lifecycle has now become a priority investment area.
As a result, a focus on sustained evaluation and improvement of AI systems will foster an environment of innovation and adaptability, ensuring that all transformation programmes are continuous. Through setting clear KPIs and targets, businesses can create a culture of progression. Equally, employees need to be on board as AI will never be a replacement to human logic and creativity on construction projects. It must be considered a tool that can provide vast inroads in increased productivity, akin to an invaluable site assistant and not an employee replacement. This means that firms adopting AI do so purposefully and strategically, aligning initiatives with core business operations and project delivery requirements.
In short, an exciting technological evolution is underway, pushing construction businesses to evolve in lockstep with the latest AI innovations as they emerge. Organisations that carefully align AI with business operations and the project lifecycle will increasingly realise the value from these applications. And for their customers, these developments will be welcome. The potential will be extensive for firms that embrace emerging technologies such as AI, since profitability and competitive advantage increasingly hinges on intelligent automation.
