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AI IN CONSTRUCTION
Digitize work , reduce risk , and maximize profits .
By Hari Vasudevan
Construction is an industry built on massive scale , precise execution , and collaboration of a global team of suppliers . Despite all the advancements , poor communication and lack of collaboration across teams , leading to inefficiencies , chaos , and increased risk , remains our industry ’ s Achilles heel . Less than ten percent of large construction projects finish on time and on budget . For an industry valued over $ 13 trillion , this isn ’ t just a challenge - it ’ s a wake-up call . How can we keep up with the changing times and meet reasonable customer expectations in today ’ s connected world ?
Let me share something from my experience . I ’ ve seen firsthand how technology , especially AI , transforms the challenges of lack of digitized work , increased risk , and low-profit margins into opportunities for the construction industry . It ’ s not just about cutting costs or saving time - it ’ s about reimagining how we engineer , procure , build , and deliver our product to our customers .
The reality check : Why construction needs AI
Every year , construction faces escalating challenges , increasing risks , and ever-thinning margins . Big dollar numbers masquerade the industry ’ s foundational issues . Most firms are one error away from going out of business . Persistent labor shortages make it increasingly challenging to find skilled workers . The construction industry is facing a significant talent shortage ; Deloitte reported an average of 382,000 job openings per month between August 2023 and July 2024 . This marks the third consecutive year with monthly averages nearing 400,000 , adding more strain to an already challenged industry . If productivity remains stagnant and workforce growth continues to be slow or negative , construction output could fall short
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