How AI can help your construction business

Use AI to save time, cut costs and be more competitive.
4-minute read

Heavy documentation. Numerous standards. A highly regulated environment. 

Together, they make construction an ideal industry for adopting artificial intelligence (AI). 

“Construction companies have a lot of catching up to do when it comes to digital maturity and new technology adoption. They need to start now. AI tools are ready. Early adopters will gain a real competitive edge in the years ahead,” explains Hugues Mailhot, Partner and Vice-President of Explorai, a Canadian AI consulting firm.

By using AI to automate repetitive tasks and processes, construction companies can generate savings equal to between 10% and 25% of office payroll.

4 practical ways construction companies can use AI

1. Cost estimates and tendering

AI can analyze documents, extract key information and prepare draft bids. It can also speed up cost estimates.

For example, to bid on the construction of an office tower, a general contractor will need to request quotes from multiple subcontractors: for the foundation, plumbing, walls, doors and windows, electrical work, ventilation, roofing and other work. 

These requests must be sent to several companies. The general contractor then has to analyze them before preparing their own bid for the full project. 

“That means hours of analysis, calculations and data extraction, which is time you can’t bill for. Sometimes, you bid on 30 projects a week and win two or three,” says Mailhot.

This is where AI can boost profitability, accuracy and growth. It can automatically extract required quantities from plans, generate more realistic estimates based on similar projects and compare different bids. 

Beyond saving time, AI can make estimates more accurate and reduce errors. “Forgetting to count the electrical outlets on one floor can have a major impact on a project’s cost and quality,” says Mailhot.

Using AI can reduce the time spent on estimates by 20% to 40%, allowing teams to focus on approval and decision-making, and to bid on more projects.

2. Project and job site management

AI can simplify real-time project and site management by assigning equipment and crews based on skills, needs and availability.

This is especially useful for avoiding inefficiencies and delays when several projects or job sites are running at the same time.

“With AI, construction companies can reduce the time needed to create plans, assignments and schedules by 30% to 40%,” says Mailhot.

But the main benefit is being able to generate a plan B much faster when something unexpected happens, such as a crew member not showing up or equipment breaking down. “Instead of spending hours redoing everything, you can resolve the situation in five minutes.”

3. Quality control, safety and risk prevention

Using computer vision, AI can detect anomalies or deviations on job sites.

For example, it can analyze photos taken with high-speed cameras on the job site to identify cracks and help ensure quality.

It can also detect missing protective equipment and identify potentially hazardous or unsafe situations.

This helps teams respond quickly and efficiently.

Change management is essential. Involve your teams from the start, especially the people who will use the new tools, because AI is useless if no one wants to use it.

4. Administrative tasks and document management

AI can also act as a virtual assistant for your teams. 

It can transcribe meetings, prepare follow-ups and summaries, and help with document management. 

With RAG (retrieval-augmented generation) solutions, you can search large databases or document repositories and get quick answers in plain language.

For example, AI can quickly manage tasks such as checking construction standards or identifying missing documents. 

In some companies, a full-time employee manages suppliers and billing. AI can automate searches, match invoices to the right files and file them in the right place. 

Where to start

Analyze your needs and look at which tasks are still done manually. “It’s important to map out tasks, describe each process and identify what can be automated,” says Mailhot . “But if your ERP or Excel data is entered manually and contains errors, you need to clean it up before moving forward.”

AI is not an end in itself. It’s a tool to help you reach a goal. I often tell business owners to identify the parts of tasks that my 12-year-old could do after 30 minutes of training.

Next step

Get advice and preferential-rate financing to adopt AI, digital tools and state-of-the-art equipment.