AI is one of the most impactful trends in modern technology, yet it remains one of the least understood. It’s easy to get caught up in the hype and feel left behind. The pace of AI adoption in the real world is driven by practical use cases and applications, not by trending topics or social media influencers.

The construction industry is at an inflection point, adopting technology like AI and other software to boost productivity and efficiency while overcoming fears and resistance to change. A Yooz 2024 survey found that “the construction industry was perceived to have the least prevalent use of AI, as well as the highest level of AI resistance.

Despite these hesitations, the potential of AI in the construction industry is nearly undeniable. Industry analysts predict that AI will generate $8 billion in annual revenue from the construction sector alone. This represents a significant opportunity and shift. However, the path to this state isn’t exactly clear.

Our goal in this article is not to contribute to uncertainty and hype but to provide a clear use case for AI in construction. Specifically, we will examine AI and automation in construction project management, a promising area with immediate implications.

Benefits of AI in Construction Project Management

While still relatively new, the use of AI in construction project management offers several benefits. It can automate routine tasks, manage production schedules, provide data analysis for cost estimation, and assist in creating bid documents. Some key benefits of AI in construction project management include:

• Improved cost estimation and budgeting
• Enhanced risk management
• Streamlined scheduling and planning
• Better decision-making with predictive analytics
• Optimized resource utilization
• Faster and more accurate project reporting

Improved cost estimation and budgeting

AI tools excel at handling large volumes of data, and natural language processing (NLP) provides additional context and metadata for advanced analysis. For example, AI models can be fed data from previous projects, including cost data and project details (type of work, size of project, etc.). This data can be used to predict future costs on similar projects instantly. Over time, AI tools can be trained through machine learning to identify patterns and trends.

This may seem like science fiction, but AI tools are fast becoming reliable enough to handle more advanced analysis. In turn, AI can help automate custom estimation for projects based on project parameters and historical data. AI has the ability to consider multiple variables for precise budgeting and can dynamically adjust budgets as project conditions change. For example, if supplier costs increase.

Enhanced risk management

Detecting risks and flagging issues before they become major problems is a key component of construction project management. AI tools can ingest and analyze vast amounts of data to detect risks and suggest actionable steps to mitigate them.

Integrating project management tools with AI enables continuous monitoring for new risks. Once a risk is identified, AI can provide alerts and updates to your team, allowing you to respond accordingly.

Streamlined scheduling and planning

With guidance from your team and historical data, AI tools can create efficient schedules that consider all project variables. This reduces downtime and task overlaps, optimizing project timelines and ensuring smooth operations. As with many AI use cases, the ability of AI to dynamically update schedules based on project progress is paramount.

AI excels at dynamic, responsive schedule adjustments based on variables such as labor availability, supplier shipments, and the status of prerequisite tasks. AI doesn’t need a cup of coffee to analyze data—data is its raw material, and it excels at analyzing it. However, AI needs help from your team in adding context and situational awareness. Data inputs must be matched with the team’s experience.

Better decision-making with predictive analytics

Use AI to analyze vast amounts of data to provide actionable insights about current and future projects. This is a key benefit of AI, and, as mentioned before, AI works with data like you work with a cup of coffee. However, this benefit requires some setup and configuration from your team. Depending on the toolset you’re working with, you may need to set up data models before benefiting from forecasting and predictive analytics.

Optimized resource utilization

A key component of construction project management is managing all your material and labor requirements. This prevents over-ordering supplies and underutilizing labor, both critical to managing costs. AI can intelligently assign resources where they are needed most, ensuring optimal use of available resources. With real-time resource tracking, you can monitor usage and availability and make adjustments on the fly.

Faster and more accurate project reporting

AI tools can help create detailed reports automatically, providing more consistency and accuracy. If configured properly, AI can ingest data in real-time, allowing for up-to-date reports. It can also improve data accuracy by reducing errors in data entry and analysis. Overall, AI can dramatically enhance your ability to provide faster, more accurate project reports to your team.

Use Cases for AI in Construction Project Management

As with any AI topic, the use cases and potential are impressive—AI seems applicable to virtually any scenario. Let’s look at three use cases in particular: 

• Design & Planning
• Resource Management & Optimization
• Real-Time Project Monitoring

Design & Planning

Project and workforce planning is a complex, nuanced undertaking that can significantly impact your final outcome. AI can be used throughout the planning and design stages to find the best path forward. For example, AI-driven design tools can create multiple project plans based on constraints such as budget, time, and resources, allowing you to evaluate options and pick the best solution.

Learn more: Construction planning 101: an essential guide 

Resource Management & Optimization

Labor and workforce requirements are major considerations for any construction project. Estimates suggest that labor accounts for about 40-50% of the total cost of a construction project, so careful consideration and planning are critical for keeping costs within acceptable ranges. Using AI in project management helps predict labor needs based on project scope, timelines, and historical data.

Learn more: Workforce management with Bridgit

Real-Time Project Monitoring

Keeping projects on schedule involves collecting real-time data from job sites and updating forecasts and timelines. Prevention is key, and AI tools can use historical and real-time data to make accurate predictions. Anomaly detection, even just flagging potential issues, can help your project management team move from a reactive to a proactive approach.

The Future of AI in Construction Project Management

How will the construction industry respond to working more with AI-driven tools, from project management software to design tools? While the construction industry has historically been slow to adopt new software, AI is poised to bring significant advancements to an industry facing labor shortages, rising material costs, and increasingly complex supply chains.

One of the challenges with AI adoption is the fear that AI “will replace human jobs.” A recent study on AI in construction project management found that practitioners were keen to use AI for quantitative processes related to scope, schedule, cost, quality, and risk assessment. However, they emphasized the importance of the human element in communication and stakeholder management. AI tools should not replace human jobs; rather, they should augment, enhance, and improve the work completed by humans.

This augmentation is set to transform the construction industry. Research suggests that AI could enhance human productivity by forty percent and even double annual economic growth rates by 2035. These numbers are impossible to ignore and represent a seismic shift in the industry.

How do you stay ahead of the curve? Companies like Bridgit are leading the way in leveraging AI for construction project management and workforce planning. Book a demo today to find out how Bridgit can help.