{"id":1159,"date":"2023-12-08T00:00:00","date_gmt":"2023-12-08T00:00:00","guid":{"rendered":"https:\/\/yardlink.com\/blog\/ai-digitisation-and-the-construction-industry"},"modified":"2024-07-23T16:25:40","modified_gmt":"2024-07-23T16:25:40","slug":"ai-digitisation-and-the-construction-industry","status":"publish","type":"post","link":"https:\/\/yardlink.com\/blog\/ai-digitisation-and-the-construction-industry","title":{"rendered":"AI, Digitisation, And The Construction Industry"},"content":{"rendered":"\t
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The construction industry accounts for approximately 7% of the gross domestic product<\/u><\/a> (GDP) in the UK, which translates to over \u00a3110 billion per annum. Given the size and impact of the construction industry, you would be forgiven for assuming that the digitisation of construction is underway. But, this is far from reality.\n<\/p>\n\n\n\n

AI in the construction industry is still controversial. 65% still use manual methods<\/u><\/a>, such as spreadsheets or pen and paper, to manage their procurement processes and site inventories. Doctors streamline surgeries by implementing AI-generated recommendations and solicitors use software to process loan applications, but construction professionals have yet to catch up. Whilst other sectors enjoy the benefits of digitisation, construction contractors continue to write checklists on pen and paper, <\/p>\n\n\n\n

Digitisation In the Construction Industry  \n<\/h2>\n\n\n\n

The digitisation of the construction industry is long overdue. In a recent study entitled \u201cThe True Cost of the Construction Supply Chain\u201d, YardLink surveyed over 250 senior procurement managers and found that 31% of respondents identified a lack of digital tools and innovation as the most significant challenge they face in today\u2019s construction landscape, with the inefficient nature of analogue communication between teams significantly contributing to the problem.  <\/p>\n\n\n\n

Digitisation can handle the entire procurement, ordering, and tracking process. For some, digitisation is a no-brainer. For others, digital risk assessments and auto-suggestions are too far removed from traditional manual methods. AI, also known as Artificial Intelligence, is the next step in digitising construction processes. Machine learning<\/u><\/a> has the ability to streamline pre-construction, optimise procurement processes, predict safety risks, support green initiatives, and much more.<\/p>\n\n\n\n

Problems in the Construction Industry <\/h2>\n\n\n\n

By implementing digitisation in the construction industry, site managers and procurement officers can tackle two points of contention – cost and time overruns.  <\/p>\n\n\n\n

The cost of construction materials rose by 24.5% in 2021<\/u><\/a> and 15% in 2022, which is in stark comparison to the 1% decrease in 2019. These statistics give a small insight into the scale of the price hikes in recent years, but they do not scratch the surface. Construction contractors also have to consider the rising cost of labour and equipment.<\/p>\n\n\n\n

It\u2019s speculated that the average construction project overruns anywhere from 10-50%. Regardless of the actual number, the stereotype that construction projects always run over schedule rings true. On top of that, legacy inefficiencies are responsible for a staggering \u00a37.6 million in overruns, another massive roadblock to progress and profitability.  <\/p>\n\n\n\n

Researchers at nPlan found that projects completed before the pandemic had a median delay time of 100 days<\/u><\/a>, whereas projects completed during the pandemic had a median delay of 200 days. The pandemic has accelerated the existing issue of time-keeping. Without intervention, the construction industry will collapse under the weight of its ineffective systems.<\/p>\n\n\n\n

Overall, the construction industry is the least digitised sector in Europe. The lack of technological innovation in the construction industry costs the global economy $1.6 trillion annually. Forward-thinking contractors and project managers are looking toward technological advances as a way to recoup productivity and profits. <\/p>\n\n\n\n

Benefits of AI In the Construction Industry <\/h2>\n\n\n\n

So, how can AI be used in construction to solve the problem of cost and time overruns?<\/p>\n\n\n\n

According to AutoDesk Construction Cloud, 35% of construction professionals spend time on non-productive activities<\/u><\/a>. This statistic is mirrored in many journals, surveys, and even YardLink\u2019s recent study.<\/p>\n\n\n\n

The consensus is that construction professionals must streamline each stage of the construction process as much as possible. AI is a valuable tool for construction professionals who want to improve communication between teams, increase productivity, and streamline processes.<\/p>\n\n\n\n

Let\u2019s look at some of the ways that AI can save construction professionals time and money. <\/p>\n\n\n\n

AI Streamlines Pre-Construction <\/h2>\n\n\n\n

The digitisation of construction could not come at a better time. Project managers, architects, and construction contractors are under massive amounts of pressure to follow increasingly complex building regulations, laws, and restrictive covenants. <\/p>\n\n\n\n

Pre-construction can be just as complex as the construction phase, but AI can help contractors navigate their long list of obligations. <\/p>\n\n\n\n