Understanding AI’s Place in Capital Construction

Industry Experts Predict AI Will Become Mainstream
Industry experts predict that artificial intelligence (AI), like search engines and the cloud before it, will transition from an emerging, specialized tool to a mainstream technology. Even market sectors seeing early adoption, however, are hindered by limited expertise, data complexity, and more. AI’s use in capital construction projects risks being beset by similar roadblocks. A McKinsey and Company study, "Artificial Intelligence: Construction Technology’s Next Frontier," revealed that adoption of AI in engineering and construction trails that of other fields. Nevertheless, progress in AI adoption is being made as owners, designers, contractors, site selectors, and service providers lean into the tool’s potential. Organizations that understand the ways specific challenges in capital project development can be offset using AI are poised to reap the greatest advantages.

The introduction of AI into capital project workflows comes at an auspicious time. The manufacturing sector and its related construction market are stable, with Reuters confirming that U.S.-based manufacturing is growing and the Associated Builders and Contractors’ Confidence Index showing that the nonresidential construction market is also stable. Early 2024 did see slight spending falls in nonresidential construction, however. Combined with ongoing issues such as high raw material prices, the risks to capital project success mean teams should harness every available tool that has the ability to improve communication, collaboration, project knowledge, and efficiency.

Read the full article from Area Development here.