How businesses are using AI in the construction industry

Examples of AI in the construction industry

AI is increasingly making its way into construction, with the technology already in use in or projected to affect 12 key areas.

1. Design

AI offers significant advantages for construction design by helping firms improve and speed up the design process, said Patrick Scarpati, director of construction technology and innovation at trade association Associated Builders and Contractors.

AI can help architects and engineers create design concepts and renderings more quickly. With generative AI, they can also explore alternative designs more easily than with manual processes or conventional software. In addition, AI supports automated processes such as 3D modeling.

These AI uses in the design process help to optimize time and resources. AI tools can also identify potential design issues by analyzing current and historical data, then applying insights from that data to the current design to prevent problems from arising.

2. Modeling

AI plays a similar role in modeling, Scarpati said. AI's capacity to model real-world structures and scenarios lets architects and engineers test construction designs to assess how a structure will behave in varying conditions.

Using AI in modeling and simulation enables construction industry practitioners to explore how changes in design, materials or methods would affect outcomes -- an exploration made easier by AI's ability to sift through vast amounts of data. As a result, AI's use in modeling can better ensure structural integrity and safety compared with legacy methods, which rely on manual analysis and less data.

3. Administrative, back-office tasks

Although the most visible work in the construction sector happens on jobsites, the industry still has plenty of desk work and back-office tasks to complete -- areas where AI is also proving beneficial.

Take, for instance, the use of AI in the request for proposal (RFP) process. Cole Weinman, a senior manager in the analytics center of excellence at professional services firm Plante Moran, said some construction companies now draft RFPs using AI-enabled software tools. The AI tool takes data from previous bids and engagements to fine-tune the requirements in the new RFP.

Construction companies also use AI to craft submissions, with models learning from past work to understand supply chains, schedules and margins to draft optimal proposals. AI also enables more real-time adjustments, Weinman said. In turn, this reduces waste and project delays that historically occur due to unanticipated supply problems.

4. Market analysis

Market analysis is another area where AI is making an impact, said Matt Fitzpatrick, a senior partner at management consulting firm McKinsey & Company and a leader of QuantumBlack, the firm's AI practice. Design firms and construction companies can use AI to pull together information about demand for design elements, building features and fixtures, as well as costs and selling prices. This enables businesses to create structures tailored to specific geographic markets.

5. Regulation management

AI is also helping construction companies navigate the complex regulations and requirements that affect their design and building plans, Fitzpatrick said. AI tools can collect and synthesize regulatory information, then integrate it into other planning systems to provide guidance at scale.

6. Sustainability support

AI can perform similar analyses to support an organization's sustainability efforts, Fitzpatrick said. For example, an AI model could calculate various sustainability metrics related to a construction project, or identify design or construction changes that would improve the project's overall sustainability.

7. Project management

AI is now a standard component of most project management software, assisting with functions such as task prioritization, scheduling, cost estimation, resource allocation and risk management. AI tools scour data for patterns and then make recommendations based on that analysis. This analytical assistance saves project managers -- and their employers -- time and money while improving project outcomes and reducing scope creep, Weinman said.

8. Procurement and supply chain management

In construction supply chains, AI tools can use current and historical data to calculate how much material needs to be ordered, where that material is cheapest and when to place the order, Scarpati said. This process is often faster and more accurate than conventional procurement methods, leading to significant cost savings.

9. Monitoring and measuring

AI also has significant benefits in monitoring and measuring construction projects, Scarpati said. Construction companies can use on-site cameras and drones to surveil worksites, take measurements and monitor progress. AI tools can then analyze the imagery to determine, for example, how much earth needs to be removed from a site, benchmark a project's progress to identify any required course corrections or pinpoint unmitigated risks that need attention.

Another related application is safety enforcement, Weinman said. When combined with IoT devices, such as sensors and cameras, AI tools can monitor jobsites to ensure safety rules are being followed.

10. Training and knowledge support

Following the lead of other industries, AI can also enhance training programs and provide on-site knowledge support for workers, according to Weinman. "Augmented training can reduce time to competency," he said.

AI can also bolster the safety of such training by letting workers practice in controlled, safe environments. Weinman pointed out that similar industries, such as utilities and manufacturing, already use augmented and virtual reality for training workers and guiding them through on-site tasks, although its use is not prevalent in the construction sector yet.

11. Autonomous equipment

The construction industry is likely to see autonomous vehicles operating on construction sites in the future. In sectors including agriculture and warehousing, such vehicles are already in use, Scarpati said -- and that future isn't too far off for construction. In 2024, HD Hyundai introduced a full-scale AI-powered autonomous excavator.

"When you have a company like Hyundai talking about this publicly, you know it's coming," Scarpati said.

12. Future innovation

AI could bring new ideas to the construction industry, Fitzpatrick said, pointing to communities of homes built with 3D printers as an example. That could be just the start, he said; AI use throughout the construction process, from regulatory compliance to design to building practices, could transform the sector.

Fitzpatrick also predicted further transformation when robots arrive on the scene. He envisioned a future where robots capable of following natural language instructions -- rather than being preprogrammed for predictable or repetitive tasks -- could take on various construction site jobs, particularly dangerous ones, to safeguard human workers.

Mary K. Pratt is an award-winning freelance journalist with a focus on covering enterprise IT and cybersecurity management.