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There’s a revolution taking place in construction productivity and collaboration, and it's being fueled by AI technology.
It’s no secret that, as an industry, construction struggles with collaboration. It’s always been a fragmented industry with owners, designers, architects, contractors, and subcontractors coming together to get the job done.
But even within a construction business, teams operate in silos, working with fragmented and disconnected systems. It’s natural. Even before the workforces of the world were turned upside down by the pandemic, construction was the original remote workforce. There’s a huge disconnect between workers in the field, PMs splitting time between the jobsite and back office, and finance teams crunching numbers in the office.
Crucial data is typically spread across departments, in different systems and formats. To compound it, clients may demand their own systems, formats, and processes that may run counter to the company’s policies and procedures.
Just because it’s the way it’s always been doesn’t make it right. To improve risk management and efficiency in construction, businesses need a holistic view. Financial information must be shared across teams throughout the entire project lifecycle, especially between finance and operations.
Without a holistic view, projects risk inaccurate forecasts, high budget variance, unforeseen expenses, missed or unaccounted-for change orders, and insufficient resource allocation. Planning and scheduling become ineffective, resulting in delays, scheduling conflicts, and poor coordination. Projects run late, costs overruns run high, and inefficiency runs rampant.
AI for the win
Advances in artificial intelligence (AI) are changing the game around collaboration in construction, helping achieve the financial and operations alignment that construction businesses need.
AI is helping construction companies do this in three ways:
1. Automation for data integration and analysis
AI-based automation uses software to perform tasks that a human would, reducing the need for human labor around repetitive tasks, but also performing them faster and more accurately.
Automation can be used to draw information from disparate systems, streamlining the data and giving real-time access to comprehensive financial and operational insights. Armed with such a holistic view of projects, both teams can better identify risks and opportunities, improving decision making.
2. Generative AI to improve financial planning
Using algorithms that analyze historical project data — all of which is easier accessed thanks to automation — AI can generate content like cost estimates and more precise and accurate budgets, minimizing cost variances and improving financial performance. Generative AI, the same kind of AI currently making waves in the form of ChatGPT, does this by using the rules and parameters set down by the company, and by analyzing patterns and structure.
3. Leveraging AI for intelligent planning
While there’s no substitute for human experience and intuition, AI is a master at analyzing patterns and data. By analyzing past project performance and historical data, AI can generate powerful predictions about what to expect moving forward. Leadership can then use those predictions to make better decisions and enhance planning to optimize schedules and reduce conflict. That way the business is combining the best of what artificial and human intelligence have to offer.
A transformative impact
As suggested, taking advantage of AI in construction is nothing short of revolutionary. The impact on the business is enormous.
Enhanced financial visibility and control
By automating the collection and distribution of critical financial and operations data, decision makers get real-time visibility into project finances. Leaders become armed with a holistic view and the accurate insights needed to improve decision making.
Improved efficiency and productivity
By automating away repetitive tasks, employee time is optimized and freed up to work on more high-value and strategic work. Accuracy is also improved, as human error is eliminated, and employee satisfaction is increased through more fulfilling work.
Streamlined collaboration
The brass ring: AI helps streamline communications between teams, offering real-time updates and sharing information between connected systems. Gone are conflicts related to misinformation and miscommunications, and the delays that come with them.
Enhanced risk management
By tapping into AI’s amazing ability to analyze vast amounts of historical data, as well as relevant information about resources, equipment, job types and more, the business can proactively identify risks early and take corrective steps.
Using AI is quickly moving from being a nice-to-have technology in construction to one necessary for competing and succeeding in today’s market. AI is becoming the differentiator construction businesses need to become more streamlined, profitable, sustainable, and ready for what the future brings.
Briq uses AI to address the challenges of fragmented data management, cost overruns, and inefficient planning. Learn how by requesting a demo at briq.com/demo
