ARTIFICIAL INTELLIGENCE: THE CONSTRUCTION INDUSTRY’S NEW BEST FRIEND?
If cashflow is the lifeblood of the construction industry, then artificial intelligence (AI) is fast becoming a vital artery.
AI is defined by the European Parliament as being “the ability of a machine to display human-like capabilities such as reasoning, learning, planning and creativity”. This goes beyond robotics for automating manual tasks since an AI system learns from data sets to make predictions and find solutions without human intervention. By utilising advanced algorithms and predictive analytics, AI can forecast project timelines, mitigate project delays, optimise resource allocation and enhance safety.
By leveraging the power of AI, construction companies will become more competitive, enhancing the value they can provide to their clients and increasing profitability. They will, moreover, innovate and reshape the construction industry.
In this article, we will look at some of the ways in which AI is transforming how construction projects are tendered, executed and project managed throughout their lifecycle.
AI at tender stage
The tender stage for a project is often time consuming and resource heavy, involving lengthy technical, commercial and legal data relating to the envisaged project. AI can assist with the review of voluminous tender documents, evaluating requirements and identifying risks and inconsistencies between separate technical documents, for example.
Some contractors are designing proprietary AI tools capable of comparing a contract under negotiation with previous contracts to identify provisions which are not in line with the risk profile acceptable to the party negotiating the contract. The same tool can then suggest amendments in line with the company’s risk policy and accepted thresholds.
Apr-Jun 2024 issue
Reed Smith LLP