AI insights

• By understanding what equipment, software and other tools are incorporating artificial intelligence (AI) — and what value that brings to the jobsite — capital project teams for manufacturing and process facilities can improve project outcomes.
• Though not widely integrated at this time, AI can and will streamline construction methods in the future.

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With the increase in capital spending across multiple sectors in manufacturing, the integration of technology innovations becomes essential for successful project delivery. Artificial intelligence (AI) is emerging as a valuable tool that can revolutionize the delivery of capital construction projects.

While AI may initially appear intimidating, exploring its applications across each phase in a capital construction project offers valuable insights on enhancing efficiency, boosting productivity, improving safety and quality and elevating overall project performance. It is another new tool in the technology toolbox that is helping manufacturers achieve predictable project outcomes.

The architecture, engineering and construction (AEC) industry is increasingly embracing AI, enlisting it to help enhance efficiency and innovation across various processes and workflows. From ensuring safety on construction sites to optimizing design processes and enhancing sustainability efforts, AI-powered solutions are transforming multiple facets of the AEC ecosystem and have important implications for manufacturing owners executing capital projects.

According to a McKinsey & Co. study, Artificial Intelligence: Construction Technology’s Next Frontier, while the engineering and construction fields are behind others in terms of AI adoption, there is a shift taking place among stakeholders across the project life cycle — including owners, designers, contractors, operators and service providers. AI technology has the potential, through advanced algorithms and real-time monitoring, to drive safer, more sustainable and more productive construction practices.

In the CIRT Sentiment Index: First Quarter 2024, published by the Construction Industry Round Table and FMI Corp., project owners in manufacturing reported an optimistic outlook with growth in spending on capital projects, but also cited a growth in project risks, among other challenges to successful capital project delivery. For owners of manufacturing projects, AI offers the prospect of improving performance of capital projects by reducing risks in a time of increased volatility, uncertainty, complexity and ambiguity.

What’s the difference between AI and ML?

AI has the capability to assume certain tasks traditionally performed by human intelligence, while machine learning (ML) empowers software applications to enhance accuracy in predicting outcomes without explicit programming. ML models can discern patterns and evolve as they encounter more data.

AI and ML are no longer isolated technologies but are increasingly becoming integrated into technologies we use every day. For example, Microsoft incorporated Copilot, an AI-powered feature, into its existing Office tools. This enables Office users to leverage AI to improve productivity while writing documents or emails, creating presentations or developing workflows and formulas.

This trend highlights how AI and ML are seamlessly becoming part of our everyday workflows, enhancing efficiency and effectiveness across various processes. In the context of capital projects in construction, this integration is particularly relevant as it streamlines tasks, optimizes resource allocation and improves outcomes by leveraging advanced algorithms and real-time data analysis.

The Microsoft Copilot example, while simple, is indicative of how technologies used in construction, including estimating, project management, resource management and others, are increasingly incorporating AI and ML. By embedding AI and ML capabilities into existing construction management software and hardware, project teams can achieve higher levels of productivity, accuracy and innovation, ultimately driving success in complex construction projects.

AI for construction teams

AI-powered software empowers construction teams to connect seamlessly from any location, facilitating real-time data sharing and analysis. Virtual collaboration tools such as building information modeling, as well as virtual and augmented reality, enable users to visualize projects remotely. This fosters enhanced communication and feedback exchange among project stakeholders, regardless of their geographical location.

In its white paper, Introducing AI in Manufacturing, PWC cites six building blocks for successfully implementing AI that apply to the construction of capital projects. These building blocks include understanding the business application, accessing the right data, identifying the tools and systems, structuring internal and external human resources, optimizing business processes and building a culture that embraces AI and ML technology. Project owners want certainty — certainty of costs, schedules and project outcomes. Applying these building blocks to each phase of capital project life cycle can offer opportunities to ensure successful project delivery.

In the planning phase of a capital construction project, AI can play a crucial role in data analysis and decision-making. For instance, AI-powered algorithms can analyze vast amounts of data related to site conditions, regulatory requirements and historical project data to identify optimal project locations, assess feasibility and predict potential risks. AI can assist manufacturing owners with optimizing investment opportunities, choosing the right location and comparing sites for their capital investments. By leveraging AI-driven predictive analytics, project managers can make informed decisions that lay the groundwork for successful project execution.

During the design phase, AI-enabled design tools can streamline the process of creating detailed project plans and designs. These tools use ML algorithms to generate design alternatives, optimize layouts and identify potential conflicts and design flaws or clashes early on. For example, generative design software can automatically generate thousands of design options based on specified parameters, allowing project teams to explore innovative solutions and optimize design efficiency. By harnessing the power of AI in design, manufacturing project managers, working in tandem with their design and construction teams, can accelerate the design process while ensuring compliance with industry standards and regulations.

In the preconstruction phase, AI can facilitate more accurate cost estimation, scheduling and resource allocation. Advanced AI algorithms can analyze historical project data, market trends and labor availability to generate precise cost estimates and project schedules. AI-powered project management platforms can support constructability analysis, optimize resource allocation, track project progress in real-time and identify potential bottlenecks before they escalate and create challenges. By leveraging AI-driven project management tools, manufacturing project owners can collaborate with contractors to optimize resource use, minimize project delays and ensure on-time project delivery.

During the construction phase, capital owners can efficiently analyze and optimize vast amounts of real-time data and information collected from many sources. AI can assist in keeping projects on track by identifying progress compared to plan, even within complex construction projects. Project schedule optimizers can consider and evaluate millions of alternatives for project delivery and continuously enhance overall project planning. Contractors and owners can create many schedule scenarios for their projects via generative AI and then run “what if” analyses to determine how project schedules can be impacted by changing certain variables they are considering. Construction management software leveraging AI conducts project assessments for potential execution strategies, evaluates the viability of various project plans and tracks supply timelines meticulously to ensure project adherence, thereby mitigating concerns related to scheduling challenges and cost overruns.

How AI can streamline construction

 AI-driven technologies such as drones, robotics and internet of things (IoT) sensors can enhance safety, productivity and quality control on the jobsite. Drones equipped with AI-powered image recognition software can perform aerial surveys, monitor progress, identify unsafe worker behavior and identify safety hazards in real-time. Wearable AI in construction, such as specially equipped hard hats, vests and boots, can monitor worker health and alert workers to hazards.

Similarly, robotic construction equipment monitored by telematics and powered by AI algorithms can automate repetitive tasks, such as bricklaying and concrete pouring, improving efficiency and reducing labor costs. Additionally, IoT sensors integrated with AI analytics platforms can monitor equipment performance, detect defects and predict maintenance needs, thereby minimizing downtime and ensuring optimal asset use.

AI offers significant advantages in scheduling and project controls for capital construction projects by leveraging advanced algorithms and ML capabilities. AI enables the analysis of extensive project data to generate accurate schedules that account for dependencies, constraints and uncertainties, allowing for informed decision-making and proactive risk mitigation. AI-powered scheduling tools can dynamically adjust project timelines based on real-time data inputs, minimizing disruptions and maintaining project progress.

For project controls, AI provides real-time monitoring and predictive analytics, enabling early identification of trends, patterns and risks to prevent cost overruns and schedule delays. By analyzing historical project data, AI algorithms can forecast project outcomes and recommend optimal strategies for enhancing project performance.

AI offers significant support to safety and quality efforts in capital construction projects for the manufacturing industry. Through advanced algorithms and real-time monitoring, AI-powered solutions can identify potential safety hazards and quality issues before they escalate. AI-powered cameras and sensors provide real-time safety monitoring on construction sites, automatically detecting hazards through image recognition and sensor analysis.

By alerting relevant personnel immediately, these systems enable proactive measures to ensure the safety of workers, facilities and equipment. AI can analyze data to identify patterns related to quality issues, allowing for timely interventions to maintain ambitious standards throughout the construction process. This integration of AI fosters safer working environments and ensures the delivery of high-quality manufacturing facilities.

In the post-construction phase, AI-driven facilities management systems can optimize building performance, energy efficiency and occupant comfort. Building management systems powered by AI can analyze data from sensors; heating, ventilation and air conditioning systems; motors; pumps; and lighting controls to optimize energy usage, reduce operating costs and maintain indoor air quality.

AI-enabled predictive maintenance algorithms can anticipate equipment failures, schedule maintenance tasks and potentially extend the lifespan of building systems. By implementing AI-driven facilities management solutions, manufacturing project managers can enhance building sustainability, minimize operational risks and improve overall facility performance.

The future of construction methods

 The construction sector has been grappling with a range of challenges in recent years, including supply chain challenges, material shortages, cost escalations and inflation, labor shortages and increased regulatory pressures, all of which bring increasing project risks for owners. The Rise of Artificial Intelligence in Construction, a report published by BuiltWorlds, the groundwork is being laid for a more AI-dependent future in construction.

As the industry awaits widespread AI integration, incremental advancements are already underway, setting the stage for further transformative changes. AI stands poised to enhance safety measures and job stability in an inherently hazardous industry facing a shortage of skilled labor, while simultaneously paving the way for innovative design practices. The potential impact of AI on capital project construction is undeniably real and promising.

Demystifying AI for capital construction projects involves understanding its potential applications across the project lifecycle. From planning and design to pre-construction, construction and post-construction phases, AI can enhance efficiency, productivity and project outcomes for capital projects in the manufacturing industry. By embracing AI-driven technologies and integrating them into project management practices, manufacturing project owners can unlock new opportunities for innovation and achieve greater predictability and success in their capital construction projects.

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