AI in the AEC/O industry will be transformative in 2025 – but in the race to realise its potential, the sector must not lose sight of the vital importance of ethical and responsible use, writes Charlie Sheridan, chief data and AI officer at the Nemetschek Group
If 2024 sowed the seeds for change in the AEC/O sector, 2025 is the year we’ll see those seeds flourish. It’s my belief that the advancements in artificial intelligence (AI) will be a key driver behind the massive digital transformation set to take place over the next 12 months.
We’ll see AI’s true capabilities – from automating manual processes and design generation to optimising energy usage – and how it is actively reshaping the industry to deliver a more efficient and innovative future.
It is important, though, that we balance our enthusiasm for AI in the AEC/O industry with the realisation that its implementation comes with an equally unprecedented set of challenges.
In particular, we must always consider that between addressing emerging risks in safety and data security and meeting compliance with evolving regulations, an ethical and responsible use and approach of these technologies is paramount to ensuring a successful and sustainable transformation.
Identifying the challenges and risks of AI in the AEC/O industry
As is often the case in many other fields of life, the use of AI in the AEC/O industry is a classic example of how the potential for high rewards often corresponds with an elevated level of risk.
In the case of AI, the more influence we allow such technologies to have over the construction and operation of buildings, the more careful we need to be in ensuring positive outcomes and preventing and/or responding to failures and complications.
That is why I believe it is essential to consider key risk factors that AEC/O professionals face when integrating AI-powered technologies.
Data privacy and security
AI’s ability to maximise creativity and optimise design generation is bound to result in a significant increase in innovation. As such, at Nemetschek, we champion the integration of advanced security measures and advocate for industry-wide cooperation to address the pressing challenges that will arise.
Protecting new proprietary models and intellectual property (IP) created with AI is both increasingly important and complex, particularly as policymakers globally grapple with the implications of AI for IP ownership and infringement.
Moreover, in most AEC/O use cases, the utilisation of AI will involve data collection, analysis and management, information about the machinery in use, and virtually all other aspects of the building lifecycle. Safeguarding such sensitive data is vital for commercial as well as legal and data protection reasons.
But that requirement is against a backdrop of a rising number of cybersecurity attacks and data breaches across the digital ecosystem. Those often include identity theft targeting individual workers, as well as the financial extortion of entire organisations through the seizure of sensitive project data and critical operational systems; protecting project data and operational systems from such breaches and ransomware attacks becomes a critical priority for all stakeholders.
Safety
Safety is priority number one in the AEC/O sector, and it is imperative that we apply that same dedication and focus to the integration of AI into construction and operational processes.
After all, construction sites are inherently complex and high-risk environments for workers even without AI, and ensuring structural integrity is imperative for protecting the welfare of building occupants.
At Nemetschek, we emphasise the synergy of AI and human expertise. We advocate for rigorous testing, validation and real-time oversight to ensure AI systems contribute to safer, more reliable outcomes.
AI should empower professionals rather than replace their critical judgment, and we must remember that it is individuals – and not AI – that will be held responsible for the outcomes of all decisions made.
Business integrity and compliance
The two risks above must be viewed in the context of business integrity and regulatory compliance.
Whether related to safety or data privacy and security, the misuse of AI systems and AI-generated content can result in financial losses, as well as costly legal challenges and irreparable damage to a company’s reputation.
At Nemetschek, we advocate for a proactive approach, which includes implementing robust frameworks for safe AI integration, while maintaining a keen eye on increasingly complex and constantly evolving policies and regulatory requirements.
Navigating evolving regulations
One of the reasons integrating AI in the AEC/O industry is challenging is because technological advancements have largely outpaced the introductions of new regulations. By contrast, think of the pharmaceutical industry, where new drugs or treatments are subject to intense scrutiny and testing before being approved for use. In AI’s case, though, policymakers worldwide recognise the need for requirements and oversight but differ in their speed of implementation.
Therefore, is it encouraging to see the European Union taking a global lead with its AI Act, making it the first comprehensive, enforceable AI-focused regulation.
Founded around a “human-centric” approach to ethical AI use and sustainability, it aligns with Nemetschek’s own view on this technology – for us, it’s key to be “AI-driven, yet human-centric”. The EU has proactively assessed AI’s societal and industrial impact since 2017, therefore setting the international tone for responsible innovation that we are all encouraged to follow.
Globally, we see that in the US, policymakers have been a bit slower to respond to the advancing capabilities of AI. However, President Biden’s 30 October 2023 Executive Order establishes a framework for the Safe, Secure and Trustworthy Development and Use of Artificial Intelligence. Focused on the specific areas of risk management, innovation, public trust and international collaboration, this marks a significant step toward formalised guidelines.
Across Asia, regulatory efforts and guidelines have been much more diverse. If we take Japan as an example, it has taken a notably cautious stance on AI, following in the footsteps of the EU by prioritising ethical use and what it defines as the Social Principles of Human-Centric AI.
South Korea, on the other hand, appears much more ambitious in its approach to AI innovation, with its National Strategy for Artificial Intelligence detailing intentions to aggressively increase investments in AI infrastructure and education, but without abandoning ethical considerations and the protection of personal data.
Elsewhere, countries including China, Singapore and India are also advancing to find a unique balance between fostering innovation and mitigating potential risks.
While the EU is ahead, most other nations remain in the early stages of AI regulation. It’s critical for the AEC/O industry to take the lead and proactively adopt ethical, responsible AI practices, leveraging all relevant existing and emergent frameworks to shape future compliance initiatives.
Nemetschek’s vision and commitment to ethical AI
Nemetschek’s vision for AI in the AEC/O industry has always been rooted in the need to implement these powerful technologies in a responsible and ethical fashion.
This is why all iterations of the Nemetschek AI layer across brands and products – as well as other AI-based features and functionalities, that are embedded in our products – are guided by the six principles.
These include:
1. Transparency and explainability.
2. Privacy and data security.
3. Robustness and reliability.
4. Accountability and governance.
5. Sustainability and society.
6. Commitment to being stewards of change to help the next generation of workers thrive in this new era of digital transformation.
As we look ahead, we hope that our continued dedication and comprehensive approach to ethical AI deployment and development will set the standard for others in our field and, more so, that the AEC/O industry’s innovative future comes not at the expense but to the benefit of our environments and society at large.
Please note: This is a commercial profile
