Managing construction budgets is complex. Projects often face cost overruns due to unforeseen challenges, inaccurate estimates, and general inefficiencies. So, what role can AI play in combating these challenges? According to a recent report, AI integration in construction, particularly in planning and resource management, is projected to yield up to a 20% productivity increase. That’s a substantial saving.
In many ways, it’s already happening. We are increasingly seeing AI find its way into a variety of different areas of construction, but with the same goal – to increase efficiencies of all kinds (whether that’s planning, processes, safety, risk, and so on) with the positive knock-on effect of lowering costs. Controlling the budget.
Even before the building stage, generative design allows architects and engineers to see multiple solutions based on the materials and budget they input. At the construction stage, scenario simulations using AI allow for better forecasting of order changes, potential delays, and supply chain risks. Once these insights are integrated into project budgets, the relevant teams are less likely to run into concealed costs and overruns.
In short, with the correct implementation of AI, construction companies have the potential to transform budget management through gaining much-needed visibility over what are often unpredictable situations. So that’s what we will look at in this article: The key areas AI is transforming in construction and how that is helping companies become more cost-effective. Finally, we will discuss some areas of opportunity for entrepreneurs.
How AI can help construction companies
Let’s start by breaking down the areas where AI can help most in construction. While the focus of this article is on reducing costs, all the points mentioned below feed into increasing efficiencies and thus reducing costs. Because AI is able to process information much faster than humans, it can facilitate real-time decision-making that can reduce delays and expenses.
- Proactive maintenance: Maintenance that is predictive and therefore proactive means it’s no longer a case of simply replacing and repairing old systems. It’s about getting ahead of those issues before they occur, preventing equipment breakdown and key building systems. This is done through AI with IoT sensors to enable measurement of equipment performance and, from there, determine the optimal time for service.
- Streamlining processes: Prior to any building taking place, AI facilitates background automation, the streamlining of tasks, as well as the possibility of automating repetitive work. AI can identify title blocks, sheet names, and numbers, making for easier categorisation of drawings. AI can also control automated equipment and processes, freeing up employees and assigning them to tasks they excel at (and where their expertise is needed most). It also gathers and reports data to human operators, enabling proactive intervention where needed. Another key consideration is how AI can automate working with complex building codes and permits, saving time while maintaining regulatory compliance.
- Building Information Modelling: BIM is the creation of digital representations of the physical and functional characteristics of a building. To this end, BIM eases collaboration between architects, engineers, and developers. It allows these stakeholders to work together on designing, planning, and constructing buildings in a single integrated 3D model. But beyond that, BIM has the ability to produce multiple versions of the same building to help reach the best possible solution from the various designs, adjusting dimensions including room size, building height, or window position. It allows architects and developers to build before they build, addressing problems before they arise.
- Risks and safety: Risk mitigation is one of the key applications of AI in construction – the ability to review data from past projects to identify potential future risks. This might include cost overruns or material shortages. When you can predict bottlenecks, you are then able to take measures to keep schedules on track. AI also enables on-site safety enhancement when it comes to monitoring construction sites in real time, detecting safety hazards (like employees not wearing protective gear), or even equipment that is operating beyond safe parameters. Through this, AI makes the workplace safer, more efficient and more cost-effective. In fact, one report stated that AI has cut on-site work accidents by almost one quarter, which means fewer injuries and lower insurance costs.
Opportunities for entrepreneurs
While the Gulf has traditionally been dominated by a few huge companies in the construction sector, we are now seeing more examples of smaller, agile businesses that can move quickly and offer innovative tech-based solutions that are not yet in the market. With that in mind, here are some potential avenues for entrepreneurs:
- Budgeting tools: There is a growing market for AI that can provide accurate cost estimations and budget monitoring. Entrepreneurs can capitalise on this demand by creating user-friendly platforms tailored to the construction sector that can help deliver the most cost-effective and risk-reduced path for a project.
- Project management: Intelligent scheduling and workflow optimisation tools that use predictive analytics to prevent delays and cost overruns (particularly when integrating real-time site data with AI-driven forecasting) have the potential to offer construction firms a competitive edge.
- Material optimisation and waste reduction: AI-powered procurement platforms can analyse historical data and real-time demand to predict the exact materials needed for a project, cutting excess ordering and minimising waste. This is particularly important in regions where sustainability is vital not just from an environmental perspective but also from a public relations and customer expectation perspective.
- Equipment management: AI-driven systems that monitor machinery usage, predict maintenance needs, and optimise deployment can significantly improve productivity. Entrepreneurs developing machine learning-based fleet management software or automated equipment allocation platforms could see strong market demand.
- Consultancy: Many companies struggle with digital transformation, particularly large legacy businesses with entrenched ways of doing things. Some construction firms fall into this category and may require guidance to integrate AI into their operations effectively. Consultancy services specialising in AI adoption can assist companies in transitioning smoothly, ensuring they harness the full potential of these technologies.
A new era in construction
AI is bringing in a new era of precision and efficiency in construction. While the technology may touch on many areas – from processes to safety to maintenance – it can potentially bring better, data-driven decision-making based on modelling different scenarios. It means managers are no longer flying blind, but can leverage technology that can process hundreds of past scenarios to create the optimal solution for any construction challenge. This in turn allows for more accurate budgeting and substantial cost savings.
For entrepreneurs, this development presents a fertile ground for innovation, whether through developing specialised AI tools or offering services that facilitate the industry’s digital transformation.
