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September 11, 2024 - 11:07am

Article written by Josh Kanner and Rick Bell on oracle.com.

The emergence of generative AI and advanced data analytics stands to transform construction project management and decision-making as we know it.

At one level, GenAI applications can go a long way toward bringing order and clarity to project execution at a time when projects are becoming more complex and deadlines are getting shorter. And with skilled construction workers retiring faster than they can be replaced, GenAI can help firms streamline tasks and train new members of the workforce to help compensate for the labor shortage.

This article will explore how construction firms can implement GenAI to improve efficiency and increase profitability, as well as overcome some of the most common challenges.

What Is GenAI?

Generative AI or GenAI is a “new” artificial intelligence technique made possible by large language models. It has taken the world by storm since the GenAI-powered ChatGPT became the fastest product in the history of the internet to hit 1 million users—in just five days at the end of 2022.

GenAI is really good at summarizing content, extracting key facts, and creating new content (that’s where the word “generative” comes in) and doing so in ways that mimic human behavior, tone, and output.

The Associated Builders and Contractors trade association estimates that in order to meet demand in 2024, the industry needs to attract more than 500,000 additional workers on top of the normal pace of hiring. GenAI can help construction firms cut valuable time from various back-office and jobsite processes, as well as help train new members of the workforce—critical amid the chronic industry labor shortage.

Key Takeaways:

How Will GenAI Impact Construction?

GenAI is poised to become an integral tool of the construction process, improving process efficiency, trimming costs, and enhancing construction performance, as well as helping firms address the talent gap.

An April 2024 McKinsey & Company study notes that for every 20 job openings in the industry there’s only one net new employee. That’s a 20:1 imbalance between hiring and available talent, making it clear that the industry needs more efficient recruitment processes. GenAI won’t do the work itself, but it can be a valuable tool to help train, upskill, and onboard new field personnel as new generations enter the construction workforce. GenAI also is excellent at summarizing and creating content, including emails, performance reviews, and construction schedules, easing the need for employees to do those jobs. There also are approaches to retrain GenAI models that then “teach” GenAI to do industry-specific tasks, such as the ones outlined in the section below.

7 Ways GenAI Will Be Used in Construction

4 Challenges and Limitations of GenAI in Construction

It’s important to keep in mind that GenAI at its core is a statistical approach. While it can help construction firms shave hours off a number of tasks and processes, someone must still oversee the final output. It’s your name on the deliverable, after all. Here are four challenges to overcome in using the technology.

Improve Your Construction Experience with Oracle

Oracle has a unique advantage in construction and engineering: It offers a full stack of industry-tailored cloud applications, including ones for scheduling, payment management, and construction project management, complemented by high-touch consulting. All of its cloud applications run on the highly secure and performant Oracle Cloud Infrastructure (OCI).

Oracle is adding GenAI capabilities to OCI and its entire portfolio of cloud applications, including those for construction and engineering, enabling those organizations to gain the benefits of AI across their operations without having to change applications or interfaces.

With the ability to generate new workflows based on algorithms and trained data, GenAI presents the industry—which is still in the early stages of its digital journey—with an opportunity to help solve some of its most pressing problems, including a chronic labor shortage and the need to improve onsite safety and environmental sustainability.

GenAI in Construction FAQs

Which type of AI is used in construction?
Construction firms are adding GenAI as well as AI-based predictive analytics to their tool belt. Both are emerging in all areas of construction, enabling improvements in productivity and safety, for example.

Is AI currently being used in construction?
Absolutely, although the industry’s adoption is like it is for other technologies—notoriously slow. Still, it’s important for construction firms to understand that GenAI offers them opportunities to advance productivity and performance.

Will construction be taken over by AI?
That seems unlikely, especially in most of our lifetimes. Automation won’t replace manpower anytime soon. But as the construction environment grows more complex, with tighter deadlines and stricter budget requirements, firms can use AI to make better, data-informed decisions and produce/summarize documents and other forms of content more quickly.


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