How the Construction Industry Can Leverage Artificial Intelligence to Mitigate Risk and Prevent Disputes
The construction sector is on the brink of a technological transformation, with artificial intelligence poised to enhance industry practices. According to James F. Gallagher, P.E., F.ASCE, Principal at Resolution Management Consulting, “The construction industry will be receptive to AI because it represents significant value that cannot be ignored. AI may be the tech catalyst that transforms construction into a tech-forward industry.”
Historically, the construction industry has been slow to adopt new technologies due to its complexity and fragmentation. Each project is unique, making it challenging to implement universally applicable tech solutions. However, Gallagher argues that AI has the potential to bridge this gap, particularly in reducing risk and preventing disputes. He notes, “Although the construction industry is noted for its fragmentation, there are many operational processes that have core similarities or are relatable to broad numbers of projects. Those similarities can provide the foundation for the machine learning of AI in construction, ultimately reducing risk.”
One area where AI can make a significant impact is in managing change orders, a common source of disputes. By integrating AI into the change order process, companies can enhance analytical capabilities, allowing for quicker identification of issues and communication across teams, thereby preventing disputes before they escalate.
Gallagher highlights five critical areas where AI can be applied to mitigate risk:
Initial Design Phase
AI can facilitate early modifications in the design phase, improving cost estimation and resource allocation.
Efficient Scheduling
In 4D and 5D BIM scenarios, AI can predict scheduling conflicts, allowing teams to address issues proactively.
Enhanced Communication
AI improves team communication by updating everyone on changes and their implications, reducing errors and misunderstandings.
Predictive Analytics
AI's ability to analyze large datasets can provide insights that help prevent disputes by suggesting changes in timelines and installations.
Real-Time Project Monitoring
AI can monitor daily activities against project goals, helping to reduce human error through real-time analysis.
Machine Learning for Future Improvement
The data and insights gained from AI can improve the efficiency of future projects.
Despite its potential, Gallagher emphasizes that AI should complement, not replace, expert analysis. “I believe that the construction industry will be more receptive to AI and AI-enhanced applications because it represents significant value that cannot be ignored. Money talks . . . and to the construction industry, AI advantages can be quantified,” he says.
As the industry moves forward, AI could indeed become the transformative force that propels construction into a more technologically advanced era.
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