Calling artificial intelligence (AI) a “potentially transformative technology” in the construction industry, Nate Fuller, founder of Placer Solutions, believes it will “unlock new business opportunities [and better] position [industry] for the future.” 

According to Fuller and many other speakers at the AI + Digital Excellence in Construction Virtual Summit on July 17, we are witnessing a "generational shift" with a steady increase in AI adoption levels in construction projects. AI offers the construction industry new and potentially lucrative "opportunities to add significant incremental value" in projects via improved efficiencies and other benefits.

Acknowledging AI has also generated healthy dollops of "anxiety and excitement" among construction professionals, Fuller remains bullish on how AI can elevate the industry. "Marketing hype has set unrealistic expectations," he noted. However, the benefits are here and tangible today, he added.

It's also worth noting, Fuller said, that Placer Solutions' annual surveys since 2020 "indicate that the digital revolution is finally knocking at construction's door, with a surge in digital roles across top contractors." 
He shared seven key takeaways from the survey conducted by Placer, including some of the challenges revealed. Among the findings:

  1. Construction is increasingly accepting AI and emerging technology. Half of ENR’s top 400 construction companies have a dedicated tech expert, innovation or technology team. “This is driven by a profound transformation in our industry, fueled by the rapid adoption of technologies like ChatGPT and a slow-moving functional shift towards dedicated operational departments,” the report said.
  2. Jargon in construction leads to confusion and is also an obstacle to maximizing the benefits of AI. The survey report stressed that "Clear communication and precise terminology are vital for aligning expectations and ensuring project success." 
  3. The fragmented digital ecosystems reflect a fragmented industry. Implementing AI is made even more challenging because of the industry's complex nature and "differing interpretations and requirements across projects," the report said. 
  4. The new digital world offers many new opportunities. The hard work is worth the effort, said Fuller. “Builders who embrace these [AI and other technology] opportunities will lead the way in customer-centric and data-driven construction practices that set new [higher] standards for the industry,” the report suggested. 
  5. Owners are a vital driver in technology adoption. Progressive owners and tech-savvy builders are already "transforming the construction industry through collaborative efforts," the report said.
  6. The shift towards more widespread digital adoption has begun. According to the report, "Digital tools in construction are poised to move from early adopters to the early majority, driven by the decreasing costs of hardware for data capture and cloud computing."
  7. AI is only going to accelerate existing trends. “By digitizing important project information and providing immediate value, AI encourages further digital adoption,” the report said. “This flywheel effect means firms with a strong AI strategy and resources can transform into technology-centric construction companies,” asserted the report. 

"The future is vast," Fuller told attendees. "AI is going to supercharge the value of data."