AI, Construction Industry and the Future of Building

LupoToro Group, construction and building Australia

AI is revolutionising the construction industry by enhancing efficiency, reducing costs, and improving project coordination, while maintaining a crucial focus on augmenting rather than replacing the workforce.

Artificial Intelligence (AI) is swiftly becoming a transformative force across various industries, with the construction sector being a notable example. The $10 trillion industry is rapidly adopting digital solutions, fundamentally altering traditional practices.

At the Engineering News-Record (ENR) annual FutureTech conference in San Diego, California, industry leaders discussed the latest advancements in construction technology, split across multiple sub-section sessions. One such session, “Building Tomorrow: AI is Revolutionising Construction Across the Globe,” sponsored by Procore, featured Procore’s Chief Data Officer Joy Durling as moderator, with Amy Jones Snider from Skanska and Tessa Lau from Dusty Robotics as panelists and briefly covered AI influence in building (commercial and residential).

The discussion centred on AI’s current and future role in construction, exploring how AI serves as a foundation for other technologies like robotics and Building Information Modelling (BIM). Durling emphasised Procore’s objective to merge practical applications of new technologies such as machine learning, generative AI, and robotics, which are revolutionising the construction industry.

If we consider the discussion points outlined in the ENR for 2024, we are able to extrapolate on key findings.

Bridging the Office and the Field

One significant challenge in the early stages of technology adoption in construction is integrating solutions for field workers. While office tasks like design, project planning, and management are easily augmented by new tools, fieldwork—which defines the industry—requires a seamless connection to these technologies. A Procore-funded study reveals that 18% of field time is spent searching for information, a problem that AI and robotics aim to solve. It’s also noted that 96% of construction data goes unused, underscoring the need for structured, accessible data for field workers.

The Role of BIM in Innovation

BIM is a pivotal technology in the AEC industry, central to AI and robotics discussions. It coordinates schedules for fieldwork and integrates with robotic layout tools. Insights from Dusty Robotics reveal how BIM enhances project coordination and planning, including using QR codes on job sites to provide workers with real-time access to project updates.

Human-Centric AI Adoption

Concerns about AI displacing human workers are common, but AI tools are designed to enhance, not replace, the workforce. Given the current labor shortages and high demand in the construction industry, automation is essential. However, it is crucial to ensure that AI adoption remains focused on augmenting human capabilities rather than becoming a hollow promise.

Insights from the Australia Region

The latest edition of the “State of Digital Adoption in the Construction Industry 2024” report by Autodesk and Deloitte highlights AI’s vital role in the future of construction. Surveying 933 firms across Australia, Singapore, Japan, India, Malaysia, and Hong Kong, the report found that 30% of Australian companies are trialing or using AI to address issues like labor shortages, material costs, and supply chain disruptions.

In Australia, 61% of surveyed construction companies are confident in AI’s potential to reduce costs, particularly significant given the trend of increased external administrations in the industry. The necessity of AI adoption for business success and cost reduction in construction is emphasised, noting the rapid adoption of generative AI tools like ChatGPT and GitHub Copilot.

Across APAC, 30 per cent of construction companies are trialling or currently use artificial intelligence in their operations, with a further 39 per cent planning to use the technology in the future. The critical role of technology in supporting business growth is increasingly being recognised. There was an increase in both businesses seeing new technology as assisting with new project work (up from 38 per cent to 45 per cent) and technology as improving internal processes (up from 37 per cent to 43 per cent).

Foundational technologies are the most commonly used, with data analytics (47 per cent), construction management software (43 per cent) and mobile apps (40 per cent) providing the backbone of construction operations. Generative artificial intelligence is expected to become as pervasive in the construction and engineering industry as these foundational technologies, with 94 per cent of businesses now having plans to integrate artificial intelligence and machine learning into their businesses.

Looking ahead, 33% of Australian construction companies plan to adopt AI, recognizing its benefits in improving efficiency, reducing costs, enhancing competitive advantage, and increasing revenue. AI could become as prevalent in construction as data analytics or mobile apps if companies follow through on their implementation plans.

The construction industry, contributing over $140 billion to the Australian economy and employing over 1.2 million people, faces a technical skills gap in digital technology. Successful AI implementation steps include piloting projects, selecting digital champions, tracking success measures, building a digital ecosystem, and ensuring AI readiness through data standardisation and operational common data environments. We consider the notion that AI is poised to revolutionise the construction industry, driving efficiency, reducing costs, and enhancing competitiveness. However, it is imperative to maintain a human-centric approach to ensure that AI serves as an enhancement rather than a replacement for the workforce.

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