In a recent AI in Construction Virtual Summit sponsored by Placer Solutions, industry leaders discussed how artificial intelligence will reshape the construction landscape. The panel featured executives from major construction companies.
The discussion highlighted key issues: workforce transformation, data quality and industry fragmentation, human-AI collaboration in decision-making, cybersecurity and risk management, and the importance of strategic vendor selection. Moderated by Nate Fuller, the panel included Tannis Liviniuk (Zachry Group), Hamzah Shanbari (Haskell), Ranjeet Gadhoke (Zachry Construction), Dana Erdman (Bulley & Andrews), and Mitch Cornelius (Fortis Construction). Their insights reveal the immense potential and significant challenges facing AI adoption in construction enterprises.
Shifting Talent Mix and Workforce Transformation
The panel acknowledged that AI is already beginning to transform workforce roles in construction. The panel emphasized that AI is poised to shift the talent mix in construction by automating mundane, procedural tasks, allowing professionals to focus on creative problem-solving.
Tannis Liviniuk noted that while mass job displacement is unlikely in the near term due to the nature of construction work, AI will reduce time spent on administrative tasks.
This shift is already evident, Hamzah Shanbari suggested, as younger workers eagerly adopt AI tools to streamline processes, questioning inefficient workflows like multi-step approvals.
Dana Erdman shared a story of a curious young hire who, despite lacking a construction background, used online resources to learn and challenge field practices. This underscores the need for a culture that embraces such innovation. However, Nate Fuller expressed concern that construction companies often prioritize traditional skill sets over tech-savvy and opportunistic thinking. Yet there’s a need to identify and nurture AI-curious talent.
The panel identified several key construction workforce trends:
- New skill requirements: There will be an increasing demand for AI expertise across all roles, from corporate offices to field operations.
- Generational divide: Younger employees are typically more eager to adopt AI tools and question established processes.
- Innovation mindset: Companies will increasingly value employees who can identify repetitive tasks suitable for automation.
Dana Erdman of Bulley & Andrews summarized this shift perfectly: "AI is going to shift the talent mix within our companies as much as we let it."
Data Quality and Industry Fragmentation
One of the most significant barriers to AI adoption in construction is data quality. As Tannis Liviniuk pointed out, "Data quality will continue to be a choke point across the industry." While AI can work with unstructured data, the prevalence of duplicative or inconsistent information remains a problem.
The panel agreed there is a risk of dismissing AI as a passing trend if outputs fail to meet expectations due to poor data quality. Given construction’s project-based, field-driven nature, many decisions are made on-site without a digital trail, making it difficult to train AI models effectively.
The construction industry's fragmentation compounds the data challenge. Hamzah Shanbari, Director of Innovation at Haskell, highlighted how various stakeholders prefer different platforms and methods: "You have so many different stakeholders that work in their own platforms. They want to do things their own way."
This fragmentation creates several obstacles:
- Communication barriers between contractors, subcontractors, and owners
- Inconsistent data formats and management practices
- Preference for direct human interaction over digital communication
This fragmentation fosters resistance to AI because trust in human relationships—built through personal interactions—outweighs confidence in automated systems. Shanbari drew an analogy to autonomous cars, where the lack of human connection reduces trust. The sentiment is echoed in construction’s preference for direct communication.
Mitch Cornelius, CTO of Fortis Construction, sees the data challenge as an opportunity: "I actually think that's where the great opportunity is for AI. Generative AI is so good at processing unstructured data, where we can integrate these systems together."
Human-AI Collaboration in Decision Making
The panel emphasized that construction project management is extraordinarily complex, requiring rapid decisions with significant risks, including life safety. Mitch Cornelius advocated for "data-supported decision making" rather than "data-driven decision making," highlighting the irreplaceable value of human judgment in the construction process.
Key points on human-AI collaboration included:
- Trust is essential: If AI tools produce incorrect outputs, user trust is quickly lost.
- Human connections matter: The relationship-based nature of construction means people prefer direct human interaction.
- Human judgment remains superior: The nuanced decision-making required in construction management still exceeds AI capabilities.
The panel agreed that the "human in the loop" approach is essential for successful AI implementation in construction.
Cybersecurity and Risk Management
The panel also identified cybersecurity as a major concern, particularly with the rise of advanced AI systems and the potential for artificial general intelligence (AGI)—which some think could happen within one to three years. Ranjeet Gadhoke emphasized protecting sensitive data, such as vendor contracts, to maintain competitive advantages, citing risks like data leakage from casual AI tool usage (e.g., uploading documents to public models like ChatGPT). His organization is exploring secure, in-house AI solutions to mitigate these risks.
Mitch Cornelius highlighted human vulnerabilities as the weakest link, noting that traditional cybersecurity training is often ineffective against sophisticated threats like AI-generated phishing emails or deepfake video calls. He also raised concerns about supply chain attacks through AI-reliant software providers, particularly startups lacking robust security compliance like SOC 2 (Systems and Organization Controls 2, a security framework created by AICPA).
Nate Fuller reinforced this, pointing out that outdated hardware and software further exacerbate vulnerabilities, underscoring the need for rigorous vendor vetting and system updates.
As AI becomes more integrated into construction operations, cybersecurity concerns are mounting. The panel identified several emerging risks:
- Data protection: Ensuring proprietary information stays secure when using AI tools
- Supply chain attacks: Vulnerabilities through software providers that use AI for coding
- Human vulnerabilities: People remain the weakest link in cybersecurity
Again, Cornelius noted particular concern about startups: "We're hyper-concerned about which startups we're joining. Are we hiring and signing up for [ones] that are using AI to write the bulk of their code? And how are they really protecting, because they don't have the resources in the early stages to get SOC2 compliance?"
Choosing the Right AI Partners
With an explosion of AI tools targeting the construction industry (many of which are merely superficial interfaces over models like ChatGPT), selecting the right partners has become critical. The panel recommended a thorough vetting process that examines:
- Company fundamentals: Location, founding team, funding status
- Cybersecurity compliance: Documentation of audits and employee training
- Data governance: Understanding how vendors use client data, particularly for model training
- Vision alignment: Ensuring partners share your organization's vision for AI adoption
- Relationship quality: The ability to have candid conversations about capabilities and limitations
Hamzah Shanbari stressed a rigorous vetting process, including an IT questionnaire probing company details, funding, cybersecurity compliance, and employee training. Such vetting filters out startups that are unprepared for enterprise-grade security needs.
Ranjeet Gadhoke emphasized selecting vendors aligned with the company’s long-term vision, capable of adapting to evolving AI strategies, likening the relationship to a marriage. Tannis Liviniuk stressed transparent conversations about tool capabilities, limitations, and data usage (e.g., whether client data trains vendor models) to avoid misaligned expectations.
The panel warned that poor vendor choices can derail trust and progress, particularly if tools underperform or expose data. Thorough due diligence and alignment on strategic goals are essential.
Emerging AI Trends and Opportunities
Looking toward the future, the panel highlighted several developments in a "next big thing" lightning round, highlighting AI trends to watch in 2025:
- Generative scheduling: AI that can create project schedules beyond what humans might conceive. (Tannis Liviniuk mentioned AI-driven schedules that propose novel approaches, for example, AlphaGo’s.)
- AI assistants: Role-based tools that provide information when and where it's needed
- Generative design: Complete designs that could potentially eliminate RFIs (Requests for Information)
- Super-Intelligent Project Managers: AI with exceptional cognitive capabilities to support decision-making.
- Startups focused on real value: Companies developing AI solutions that genuinely improve daily work (Cornelius offered the example of Prime Point, which focuses on meaningful improvements to project team workflows).
Conclusion
The construction industry stands at the threshold of significant transformation through AI. While challenges around data quality, cybersecurity, and human-AI collaboration persist, the potential benefits in efficiency, decision support, and creative problem-solving are immense.
The key to successful AI implementation in construction appears to be balance—embracing automation for mundane tasks while preserving human judgment for complex decisions, maintaining data security while leveraging AI insights, and being open to innovation while carefully vetting new technologies and partners.
Ranjeet Gadhoke aptly noted the axiom, in this AI journey, that "change is the only constant." Construction enterprises that pursue and navigate this change thoughtfully and strategically will be best positioned to reap the benefits of AI while avoiding potential pitfalls.
