In recent years, there has been a rapid increase in the use of Artificial Intelligence (AI) in the Australian construction industry.

Currently, 30 per cent of Australian Construction companies are experimenting with AI software, a tool that holds the potential to alleviate major industry challenges such as labour shortages, material costs, and supply chain disruptions.

61 per cent of Australian construction companies said using AI would help them reduce costs at a time when many construction companies are facing financial difficulties.

If all companies with plans to adopt AI do so, it will have a similar prevalence to data analytics or mobile apps.

So what are the benefits and limitations of using AI in the construction industry?

According to State of Digital Adoption in the Construction Industry 2024 report, construction companies identified various benefits of using AI. These included:

• Improving efficiency
• Reducing costs
• Increasing competitive advantage
• Increase revenue
• Improve margins
• Uncover new ideas and insights
• Enhance relationships with clients
• Create new revenue streams

How can AI be used in the construction industry?

AI can be used in the construction industry to improve productivity and efficiency in several ways. These include:
· Developing project proposals: The use of AI means project proposals don’t have to be developed from scratch. Instead, material from previous projects of similar specifications can be leveraged.
· Prevent project cost overruns: AI can be used to help develop project budgets and predict cost overruns based on factors such as project size, contract type and delay or cost factors.
· Perform repetitive tasks: AI-based self-driving construction machinery can perform low-level repetitive tasks such as pouring concrete, bricklaying, welding, demolition and painting.
· Site safety: Through the use of cameras, AI systems can watch what is happening on site 24/7 and identify any possible safety issues. AI can identify safety issues and report them back to the site manager. For example, using facial recognition technology AI can identify workers who are not wearing protective gear such as safety helmets.
· Quality control: AI can assist in identifying quality issues or deviations from designs
· Identifying potential projects: AI can be used to help identify profitable project opportunities.

Limitations of using AI in construction

However, construction companies implementing AI should be wary that the technology has several limitations. These include:
· Workforce with skills: Effectively using AI will require having more people with skills in this area. Almost two in five businesses have a skills gap in this area.
· Lack of context and understanding: AI systems may not understand the nuances of a project site or the unique needs of specific stakeholders.
· Data quality: AI systems rely on accurate and comprehensive data to make decisions. Construction projects generate a lot of data. However, much of it can be unstructured and difficult to analyse. In addition, the quality of the output is only as good as the quality of the data entered into the AI system
· Cost of implementation: Implementing AI into project management can be costly, time-consuming and challenging. The technology itself may require significant investment, and existing processes and systems may need to be altered.
· Dependence: It is important not to over-rely on technology such as AI to complete projects. Like with any technology, AI can malfunction, fail or make mistakes. Therefore, it is essential to have contingency plans in place to ensure this does not lead to significant issues.

While AI can provide many benefits to the construction industry, it’s essential that its limitations are understood and measures are put in place to reduce over-reliance.

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Article References

1. Al Wahab, A (19 September 2023) ‘How can AI enhance construction project management and what are its limitations?’, Rider Levett Bucknall, accessed 8 October 2024

2. Cook, K (n.d) ‘Construction industry report finds rapid rise in AI‘, Infrastructure Magazine, accessed 8 October 2024

3. Deloitte (April 2024) ‘State Of Digital Adoption In The Construction Industry 2024‘ Deloitte, accessed 8 October 2024

4. University Of Technology Sydney (n.d) ‘AI for Sustainability in the Construction Industry‘, University Of Technology Sydney, accessed 8 October 2024