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Mind the AI gap
Until new legal standards are established, parties should address AI risk in contracts
Artificial intelligence( AI) is quickly making its way into seemingly every corner of American life. The spread of AI has been so rapid that existing laws, precedents, and industry standards often fail to provide guidance for how to properly determine liability should something go wrong when it involves AI.
The construction industry can certainly be included among the sectors forced to navigate murky legal waters over the next decade until detailed language on the use of AI, and a standard approach to mitigating or allocating its risks, becomes the norm in all contracts. With a technology still in its infancy, AI is both creating opportunities and efficiency in construction, while also contributing to errors, mistakes, and failures on the jobsite based on flaws in the AI or how it is used. Who shoulders the blame and, more importantly, the liability for issues caused by the use of AI is oftentimes unclear.
Owners of construction firms of all sizes are increasingly turning to AI for reduced costs and improved accuracy at all stages from design optimization and scheduling to safety monitoring and inventory management. Clear contract language governing AI, and who is responsible for it, will both help avoid costly litigation and alleviate fears about using a tool so new and powerful, yet far from perfected in an industry that requires precision.
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