The emergence of sophisticated Artificial Intelligence (AI) technologies has gained traction across a plethora of different industries, and construction is no different.
One of the promising applications of the technology is the use of AI-driven smart contracts, which perform tasks that would typically be manual.
They can trigger payments or adjustments automatically in response to certain weather conditions, ensuring contractors and project owners receive fair and timely compensation for weather-related delays. This helps to minimise financial risks and disputes.
Whilst many are apprehensive about the implementation of AI into their industry, the Chartered Institute for Building (CIOB) implores those in construction that they should treat AI as a “new colleague” – which highlights its ability to make day-to-day tasks easier.
How AI can make the construction industry more efficient
Many construction projects utilise project management systems to manage documents and handle correspondence, but this is just the beginning of what AI technology can accomplish.
“Smart construction law” envisions a future where the certifier’s role in a project is automated, enabling the creation of reliable records for certifications and instructions issued by the contract administrator.
The smart contract is stored on a blockchain and designed so that all parties can track the project’s progress and ensure that each party is accountable for their responsibilities.
Smart contracts can automate routine tasks, freeing up time for workers to focus on strategic activities whilst minimising errors.
By embedding contract terms into a blockchain, smart contracts can automatically execute once specified conditions are met, therefore, accelerating processes.
The unalterable nature of blockchain guarantees that all parties access the same information simultaneously, reducing misunderstandings and disputes.
Smart contracts can also streamline payment processes, ensuring prompt payment upon reaching milestones, thus mitigating late payment and cash flow issues.
Concerns over AI in the construction industry
For smaller construction companies, one of the significant challenges is the high cost of adopting AI. This entails investments in technology, infrastructure, and training.
Statutory challenges must be tackled to ensure smart contracts comply with legal requirements for signatures and written agreements. Additionally, built-in dispute resolution mechanisms are essential for handling coding errors.
There will also have to be structured training plans implemented to onboard AI, as workers who are unfamiliar with the technology may be discouraged from using it.
Having an up-to-date database with high-quality data is also essential. Incomplete data can hinder AI performance.
What can your firm do to prepare for AI Adoption?
Contractors can get ready for AI integration by evaluating existing workflows to pinpoint areas where AI can provide the most benefit, such as automating payments or tracking compliance.
They should also plan for technology and infrastructure upgrades and provide training to address any skill gaps in AI knowledge within their organisations.
Ensuring legal compliance for smart contracts, incorporating dispute resolution processes, and budgeting for potential integration costs with current systems will help ease the transition to AI. By taking these steps, contractors can better prepare for a future of more advanced construction.
Perhaps most importantly, there must be a willingness of those working in the industry to accept the adoption of AI. It will undoubtedly bring changes to how people work in the industry day-to-day – and many will be apprehensive about the need to learn a new skill.
However, it has the power to be a “new colleague”, by streamlining repetitive tasks, boosting efficiency and profitability whilst reducing risks.
If you would like to discuss more about the benefits or implementation of AI in your firm, get in touch with our team.