Artificial intelligence (AI) is on the cusp of transforming the construction industry, presenting an opportunity that many construction companies are beginning to seize. Historically, the construction industry has been slow to adopt new technologies, with some executives believing in waiting for others to figure out the technicalities before bringing them into the fold. However, AI is quickly becoming an exception, with a growing number of companies in the industry recognizing its potential.

Grassi’s Construction, Architecture & Engineering 2024 Conditions and Outlook Report indicates that 62% of general contractors and 46% of subcontractors are actively considering AI for their operations in the near future. As the second-ranked technology for investment, AI has captured the attention of many, even though full adoption may still be 18 to 24 months away, as some executives predict.

AI holds immense promise for construction companies, particularly in several key business use cases. For instance:

Cost Reduction‍

AI is poised to revolutionize cost estimation and budgeting for construction projects, offering more accurate predictions and helping contractors save money.

Design and Planning‍

AI can integrate with building information modeling (BIM) to enhance the design process, resulting in more accurate and optimized building models.

Project Management‍

With predictive analytics, AI can help project managers anticipate and mitigate potential issues, create more efficient project schedules, and adjust timelines in real-time based on evolving project data.

Resource Allocation‍

AI can predict the optimal distribution of resources like labor, equipment, and materials across projects, improving efficiency and reducing downtime.

On-Site Automation‍

AI has the potential to supplement the skilled labor force by automating repetitive tasks like bricklaying, welding, and material handling, enhancing worker efficiency and reducing strain on laborers.

Safety‍

AI-powered systems can track laborers' health and fatigue, detect hazards, and prevent accidents, leading to safer job sites and fewer workplace injuries.

‍Quality Control‍

AI's computer vision systems can inspect work quality in real time, identifying defects and reducing waste during construction, which could significantly improve cost-effectiveness.

Sustainability‍

AI can also support energy-efficient designs and installation methods, helping the construction industry meet the growing demand for sustainable building practices and resource management.

While the transition to AI in construction will require investment in both technology and training, its long-term benefits are undeniable. With enhanced efficiencies, improved safety, and more accurate project outcomes, AI offers the potential to drive higher gross margins and better overall profitability.

However, the successful implementation of AI in the construction sector will not come without challenges. Companies will need to adapt management practices and invest in both financial resources and training to fully leverage AI's capabilities.

This opportunity is one that the industry cannot afford to overlook, and those that fail to integrate AI may find themselves falling behind their more forward-thinking competitors.

For more information, please contact Carl Oliveri, partner and construction practice leader, or visit grassiadvisors.com/industries/construction.

Originally reported by Carl Oliveri in South Florida Business Journal.