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Vast AI potential in construction and engineering
AI trends in the construction and engineering industry include automated and autonomous equipment and robotics, smart design, BIM tools and virtual reality, asset performance management, and predictive maintenance using smart sensors and IoT. Other case examples are drones to measure project progress and smart cameras and wearables to improve health and safety on the construction site. These are all very exciting and valid examples of where the latest technology and AI will drive major business performance improvements.
In addition, there are major AI improvement opportunities that will be realized in the core project and asset lifecycle processes. These have the potential to dramatically enhance productivity and efficiencies across all business functions, with support of AI agents.
This will also drive major improvements to project and asset performance by delivering consistent and repeatable project processes. The term industrial AI is now being used to describe these AI use cases.
Organizations early along the adoption pathway
However, the majority of organizations are still at the beginning of their digital transformation journeys, and there is work to be done before organizations experience the real business benefits. Historically, the sector has lagged in digital adoption, relying on disjointed business systems and manual processes, such as spreadsheets, which compromise data accuracy and decision-making. Moving forward, industrial AI technology, coupled with the right digital backbone, can play a pivotal role in how data is captured, analyzed, and used to optimize project outcomes.
A strong digital foundation for AI success
Recent IFS research finds that there is an increasing appetite from construction and engineering organizations to adopt enterprisewide digital platforms. This may be a critical moment, with approximately 63 percent of companies saying that they are planning to implement new enterprise resource planning( ERP) platforms by the end of this year. These platforms are essential to integrate operations and IT system landscapes, and ultimately lay the foundation that will enable industrial AI.
For construction and engineering organizations to reap the full value of AI, a reliable digital foundation is required to ensure strong systems and quality data. A house cannot be built without a foundation, the same as an AI system will not be effective without a digital backbone. This is where that comprehensive ERP solution comes in.
Stats show industrial AI holds significant potential
IFS predicts 55 percent of construction and engineering firms will be looking to infuse intelligence into their operations in 2025 and beyond, and the transition to data-driven management will be vital for unlocking AI’ s full potential. Data centralization and standardization are prerequisites for AI deployment. Firms must integrate and systematize data from disparate sources to ensure consistency and accuracy. This transformation reduces risks, improves resource utilization, and enhances financial and project outcomes.
When it comes to data and data analytics, AI has the potential to collect, process, and analyze large amounts of data from various sources, including ERP systems, to provide insights and predictions for construction projects, such as site conditions, project risks, forecast future project costs and margins, and performance indicators. All of this is a great leap forward from the traditional use of spreadsheets.
More and more construction and engineering organizations are realizing the
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