_____________________________________________________________________________________________________ Industrial AI
Enhancing efficiency
Industrial AI can help rebuild construction and engineering, with the right digital building blocks
Construction and engineering organizations are optimistic despite the persistent economic uncertainty but increasing demand for infrastructure, housing, and municipal business projects. There is significant market potential, with McKinsey estimating that the industry could grow to $ 22 trillion by 2040, a massive increase from the $ 13 trillion gross annual output from global construction projects as of 2023.
The industry is challenged to find a way to improve project performance by delivering projects in shorter timescales, on time and on budget with minimal defects and rework while also meeting growing ESG requirements.
This is increasingly difficult, as companies face fierce competition and low project margins, sometimes as narrow as one-to-two percent. To keep projects profitable, businesses need to accurately estimate projects and manage costs( labor, equipment rental, materials, sub-contract package costs and overheads), cash flow, and contract and project change, while monitoring actual and committed costs and tracking project progress.
The use of industrial artificial intelligence( AI) holds great promise for construction and engineering industry breakthroughs. According to the Deloitte 2025 Engineering & Construction Outlook:“ Companies in this industry will need to leverage digital tools and AI to increase their capacity and capabilities.” In fact, 79 percent of construction and engineering companies expect AI to deliver tangible benefits within one-to-three years.
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