The construction industry is one of the least digitalized industries and, as a result, has been slower than other sectors to implement AI.
However, AI adoption in the construction industry is gaining traction and will continue to grow over the coming years.
Artificial intelligence and the construction industry
AI has the potential to transform processes across the project lifecycle. In almost every other industry, the use of AI is growing. According to GlobalData forecasts, the total market will be worth $908.7bn in 2030, having grown at a compound annual growth rate (CAGR) of 35.2% from $81.3bn in 2022. However, construction is starting to catch up. Verdict recently reported that AI-enabled construction start-ups have raised more venture capital investment in the last three years than AI-enabled fintech start-ups.
The construction industry is widely considered to be one of the least digitalized industries and has been slower to adopt AI than other sectors. This is due to several unique challenges the industry faces. Historically, computers did not have the processing power necessary to crunch the data needed for Building Information Modelling (BIM), as it is often vast and unstructured. Accessing this data was also notably inconvenient. However, in 2023, AI implementation has grown considerably due to developments in computer power, semiconductors, and cloud computing, which facilitates data sharing.
How change is being implemented
The high stakes involved also make it harder for the construction industry to adopt new technology. The health and safety considerations and small profit margins, which are inevitable components of every construction project, mean there is no room for error. Specialized applications for construction need to be imagined, and the technology needs to be integrated appropriately and accurately.
Some construction technology start-ups have created AI products that have accomplished this specialization, and adoption will continue to grow. AI can potentially mitigate historical construction issues that typically stem from the design and bidding phase, such as inaccurate cost estimates, overly optimistic timelines, and lack of risk analysis.
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By GlobalDataGenerative AI has turned construction industry heads
The increased interest in generative AI sparked by the launch of ChatGPT in November 2022 has also been felt in the construction industry. Generative AI use cases in the construction industry include improving customer service, helping to navigate product or building information, creating renderings and 3D modelling for architects and designers, and automating data filtering and processing.
AI will transform the construction industry and help to enhance the development and implementation of other construction-specific technologies such as modular construction, robotics, and BIM. It will exponentially speed up the much-needed digitization of the industry, which has historically held it back.
