Between typically low profit margins and an ongoing labor shortage, the construction industry’s need to streamline operations and cut costs is critical. New technologies like artificial intelligence present a promising start, but construction companies have been historically slow in embracing digital transformation. In a study of 22 industries, McKinsey and Company previously ranked the construction industry as second to last when it comes to readiness for digitization. To that end, further research found that 80% of construction companies possess only a beginner’s knowledge of data science and therefore an astonishing 90% of data goes unused.
The construction is experiencing higher costs, longer project timelines and an inability to keep up with soaring demand. Technology can help the industry overcome these barriers and access its myriad benefits, such as improved efficiency, profitability and sustainability.
AI TO ASSIST, NOT TAKE OVER
The predictive capabilities of AI can be particularly useful for avoiding costly errors and delays throughout the construction process. During a project’s pre-design phase, AI can ingest different forms of data such as market data and financial data to identify unforeseen risks or potential cost overruns of a proposed design. Resolving these issues early on can prevent onsite surprises that break budgets and exceed projected timelines.
Likewise, AI can analyze data from previous construction projects and identify which stages and components contributed to the most inefficiencies or unplanned expenses. This allows companies to understand and manage the risks and improve the efficiency of future projects while creating more accurate and financially feasible plans and designs.
Another way AI can make construction more efficient is by automating slow and manual tasks, such as monitoring concrete resistance. AI-based sensors can generate information in real time and suggest smart actions based on the data. Though a human being would need to check these AI-generated suggestions to verify their accuracy, this type of AI technology can help improve supply-chain woes, monitor construction progress and improve coordination.
By streamlining the different phases of a construction project, AI facilitates faster and more accurate decision-making. Companies can operate with more agility and certainty and put their designs into action in shorter time frames. It’s not as if AI is building the actual structure itself; the technology is merely generating the information workers need to do their jobs at a faster rate and with improved confidence.
OBSTACLES TO AI ADOPTION
Despite AI’s many applications in construction, the technology’s mass adoption is currently being halted by numerous obstacles, such as the layered and complex nature of industry relationships. A typical construction project involves multiple companies, specialists and supply-chain parties working together. This means that a new system or process usually cannot be introduced unless all parties are on board.
Also, as a traditionally analog industry, construction companies may be resistant to deviating from historical standards in favor of something cutting-edge. Though manual processes and paper-based systems are time-consuming and error-prone, they are still often viewed as familiar and manageable, in contrast to new technologies which might take more time to learn and integrate.
The tech-adoption issue is compounded by an aging construction workforce that was not born in the age of the internet, as the up-and-coming Gen Z workers were. At the same time, there is a shortage of new workers, who tend to be unskilled at the start, meaning there is both a shortage of skills and workers.
STRATEGIES FOR AI ADOPTION
There’s no denying that introducing AI and other advancements into the construction process requires significant patience and time. However, there are several ways construction companies can minimize resistance from workers, nurture a culture of digitization and facilitate a smooth transition from legacy systems and attitudes.
First, it’s imperative for companies to assess needs and objectives by identifying pain points and inefficiencies in current processes and then defining clear objectives for AI implementation, such as improving project management, enhancing health and safety, reducing time, improving quality, optimizing resource allocation or reducing costs.
Secondly, companies will need to practice full transparency with employees regarding the logic and impact of the AI it plans to incorporate. This means letting workers know why the company is introducing this new technology, why it’s worth the company’s time and money and how it will affect specific divisions and positions. What is the technology’s expected return on investment? At what point is the technology expected to begin increasing efficiency and profitability? Without transparency, workers may develop their own preconceptions about being replaced by AI, or question the necessity of the technology altogether. It’s important to address any concerns or misconceptions about AI, emphasizing its role as a tool to augment human capabilities.
AI also has the chance to open the construction labor market to different profiles of workers, who perhaps 10 years ago would never have considered a move into the construction sector.
To maximize support for AI adoption, companies can also make sure to involve all of their stakeholders in the introduction of new technologies. Workers may have trouble taking an AI transition seriously without the knowledge that the different parties involved in a construction project are fully prepared to work with AI as well. It’s only by advocating for digital technologies that the industry will see their widespread adoption.
TRAIN AND EDUCATE
The importance of offering continuous workforce education and training when introducing new technology cannot be emphasized enough. Certain roles and responsibilities will undoubtedly change with AI’s implementation. Instead of expecting workers to adapt to these changes on their own, companies can invest in educational programs and resources that break down the specific technological skills workers need to learn. In addition to offering courses related to new technology, companies might consider educating workers about new methodologies for doing their jobs more efficiently in general. Workers may have an easier time embracing AI if they perceive the technology as a key component of a larger mission to increase their skillset and improve company-wide efficiency.
A good recommendation is to start with small-scale pilot projects to test AI applications, gather data and measure the impact. The projects need to be monitored and evaluated against KPIs and goals. Once it has been deemed a success, be sure it can be scaled to expand the benefits.
Other things to take into account are choosing the right AI tools and partners, data management and integration strategies.
The economist Richard Baldwin said, “AI won’t take your job, people using AI will.” And the sooner AI is integrated, the sooner your company can start learning how best to use it.
