“Artificial Intelligence is not a substitute for human intelligence; it is a tool to amplify human creativity and ingenuity.” -Fei-Fei Li, Co-Director of the Stanford Institute for Human-Centered Artificial Intelligence and IT Professor at the Stanford Graduate School of Business.
Today’s news is flooded with the topic of artificial intelligence and where this technological advancement is headed into the ever-evolving future. Since the emergence of AI into mainstream media with the release of ChatGPT in November 2022, the technology has seen exponential growth with no slowdown in capabilities in sight.
Nearly two years later, industries within the global economy have started to integrate the technology into everyday operations. The construction industry is no exception. Once thought of as an industry that lagged willingness to adopt and embrace new technology and processes, the construction industry now has a rare opportunity to change that narrative.
Below are a sample of AI and predictive data analytic opportunities currently being utilized within the construction industry:
Cost Estimation – AI and predictive analytics can be utilized to summarize historical data across an organization’s portfolio of projects. When a new project is bid and won, AI and predictive analytic software has the capability to aid in summarizing and analyzing the costs on similar scale projects that the company has completed in the past. It can also provide historical insight into the costs of contract-related materials and market pricing of labor rates. Additional inputs, such as inflation, regulatory and vendor data, can be embedded into certain AI-related software and be leveraged when estimating current and future job costs. With the help of leveraging the organization’s historical project data, key decision makers can be better informed on projects, which can lead to favorable performance.
Project Management / Risk Management – Current AI and predictive data analytic models can be trained to look at a new project and assess the project’s schedule. Based on the historical portfolio of similar projects, how long does this type of project take to complete? What are some of the areas where the Company has historically experienced runover or other challenges in the past? What has been the historical order and completion of various phases of projects? These are all questions that AI and predictive data analytics have looked to assist within the area of project management.
In addition to assisting in the scheduling aspect of project management, the technology can be utilized to summarize underlying components of the legal contract and identify key provisions when comparing the contract to the Company’s historical contracts. For example, if a project team is looking to identify if a liquidated damage clause exists within the contract, AI software has the ability to flag each instance and summarize the details of the contract to assist the project management team with interpreting the key provisions.
Maintenance / Safety – AI can help project teams predict when elements of a contract or organizational structure might need to be serviced based on usage and historical data of similar projects. Additionally, overall safety on a project may be improved through implementation of AI software language translation features. AI software, including ChatGPT 4.0, has the ability to translate from one language to another in real time. The ability for all team members to communicate regardless of their primary language enables increased communication on job sites, which results in increased safety.
These are just a few of the many examples of how AI and predictive analytics are currently being utilized on projects. As noted above, AI and predictive analytics are not intended to replace human intelligence. Rather, this technology will aid the industry and help to propel construction into the future.
For additional inquiries into how AI and predictive analytics can help your organization, please contact us at [email protected]
Sources:
AI in Construction CFMA Industry Conference Presentation (Pittsburgh) – Sumana Rao – May 23, 2024
https://www.constructiondive.com/news/the-ways-contractors-are-using-ai-on-jobsites-now/718690/
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Led by a diverse group of shareholders and managers, Schneider Downs provides strategic and practical solutions for our construction clients in all facets of their business. Our dedicated team of more than 350 professionals have a wide background of tax, accounting, technological and business experience in the region, specifically in Pittsburgh and Columbus.
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