Construction is under pressure from thin margins and an overworked, undersupplied workforce. AI can help to make the industry smarter, safer and stronger – but technological adoption must be accompanied by cultural change, writes Hari Vasudevan, founder and CEO of KYRO AI
AI adoption is steadily growing, with the construction industry no exception. Today, 37% of construction companies use AI, up from 26% only two years ago. Despite that growth, however, the industry is among the five slowest adopters.
The main hurdles include heavy reliance on manual labour, huge amounts of project data and thin margins. This makes it much more difficult for the industry to invest in new technology, causing a cycle where inefficiencies lower margins even more and leave little room for innovation.
At the same time, there’s also a human crisis: an alarmingly high suicide rate.
Construction work involves long, stressful days away from home in tough weather conditions. On top of that, there’s an industry-wide labour shortage due to the inability to
attract talent and an aging workforce. The bottom line is that teams are stretched thin and burning out.
Although AI isn’t the answer to every issue, it can help construction companies create smarter and safer workflows. Here’s how.
Working smarter with AI
The Pareto Principle tells us that 80% of outcomes stem from just 20% of causes. In construction, a handful of core processes lead to the majority of project outcomes.
Construction is all about building from the ground up, including how projects are planned from the outset. Poor setup can completely undermine projects, from incorrect time allocation to unreliable P&L tracking to inaccurate invoicing that leads to cash flow problems and delayed payments.
Project management in construction involves juggling supplier contracts, building codes, purchase orders, budgets, invoices, accounts payable and receivable, and much more – usually across disconnected systems.
It’s often an uphill battle to manage so many moving parts, which is why minor oversights at a project’s starting stage lead to costly delays. This puts even more stress on teams already on the brink of burnout.
AI can help construction companies break this cycle from start to finish and free up administrative time for teams.
AI tools analyse project data from the outset and automate time entry, billing and invoicing. This enables project managers to reduce bottlenecks and unbilled cycles, as well as ease cashflow pressures.
Building a safer, more humane work environment
Most resistance to AI stems from widespread fears that it will replace people’s jobs. However, AI in construction isn’t about replacing people but protecting them.
AI, paired with connected IoT devices like sensors and cameras, is able to track working hours, travel patterns and risky on-site behaviours. It can then trigger early warnings of employee fatigue or safety issues for supervisors to act on before they worsen.
When managers are aware that a crew member is overworked, they can step in before burnout or accidents happen. These small interventions can make a massive difference in an industry already contending with mental health and wellbeing challenges.
Unlocking the missing piece: Collaboration
Successful AI deployment boils down to how teams use it. An algorithm can flag a missing invoice or an overworked crew member but has limited value without human follow-through.
That’s why company-wide buy-in is crucial. Field crews, project managers and office staff, such as finance teams, must work together. Without collaboration and training, AI ends up as another underused tool that causes more headaches than help. Teams across the company must be familiarised with why AI is being used and how to act on its insights.
Gaps between disconnected systems also need to be bridged. For example, automated invoicing only works if both finance teams and construction crews input data correctly and consistently. That alignment between departments is key to maximising the benefits of using AI and avoiding further friction from it.
Financial pressure from thin margins and human pressure from an overworked and undersupplied workforce are causing a two-pronged challenge for construction. AI can help companies overcome that by streamlining project setup, reducing cashflow issues and supporting safer working conditions.
However, AI can only deliver on its promise for a smarter, safer and stronger construction industry when adoption happens alongside cultural change and a mindset shift.
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