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AI in Industry: How automation is reshaping the construction industry

The rise of artificial intelligence (“AI”) and smart automation has been nothing short of meteoric. With OpenAI’s ChatGPT surpassing 100 million monthly active users in just two months and investments in AI set to pass $110 billion annually by 2024, it’s clear that this technology is here to stay. But what does this mean for the construction sector? How will AI and automation change the industry, and what impact will it have on employment?

According to a report by PwC, up to 40% of construction roles could be automated by the mid-2030s. This is in line with predictions for other sectors, with up to 30% of jobs across all industries set to be automatable during the “Autonomy Wave”. The transport sector is expected to be hit the hardest, with estimates as high as 70%.

But it’s not just about job displacement. The ethical considerations of AI in construction are numerous. There are concerns about the impact on the developing world, where automation could lead to mass unemployment and economic disruption. There are also questions about the use of generative AI in creative sectors, such as architecture, and the potential for AI-generated designs to infringe on copyright.

These concerns are not unfounded. Already, AI is being used to cheat university entrance exams and coursework, with ChatGPT outperforming some students on an MBA course at prestigious US business schools. In the world of science, ChatGPT has been banned as a co-author on papers due to its ability to generate complex and accurate text.

Despite these concerns, many companies in the construction sector are embracing AI and smart automation as a way to increase efficiency and reduce costs. For example, the Dutch construction company BAM is using AI to optimise its construction processes, from design to delivery. By analysing data from past projects, the company can identify patterns and predict potential issues, leading to more efficient construction and cost savings.

Similarly, construction technology start-up Buildots is using AI and computer vision to track and monitor construction projects in real time. This allows project managers to identify issues early and make data-driven decisions to keep projects on track and on budget.

The use of AI and automation in construction is not without its challenges, but it’s clear that this technology has the potential to revolutionise the industry. As companies continue to invest in these technologies, it’s important that they do so in a responsible and ethical way, taking into account the potential impact on workers and society as a whole. Other important legal issues to consider include data privacy and protection (as AI algorithms rely on huge amounts of data to learn and make predictions) and liability for AI  – who is responsible for decisions made by the AI?

In the race to embrace AI and automation, the construction industry must not forget its responsibility to the communities it serves. By using these technologies in a way that benefits both the industry and society as a whole, the construction sector can lead the way in the ethical and responsible use of AI.

Our Employment team have recently launched their ‘Employment Law Nowcast‘ podcast, where they will be providing insights into employment law issues impacting businesses today. In their most recent episode, they specifically focus on the topic of AI in the workplace. Be sure to listen and subscribe.

As ever, our Construction team will keep you updated on developing issues. If you have any issues or queries relating to the use of AI within the construction sector, please get in touch.

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This update is for general purposes and guidance only and does not constitute legal or professional advice. You should seek legal advice before relying on its content. Greenwoods Legal LLP is a Limited Liability Partnership, registered in England, registered number OC306912. Our registered office is Queens House, 55-56 Lincoln’s Inn Fields, London, WC2A 3LJ. A list of the members’ names is available for inspection at our offices in Peterborough, Cambridge and London. Authorised and regulated by the Solicitors Regulation Authority, SRA number 401162. Details of the Solicitors’ Codes of Conduct can be found at www.sra.org.uk. All instructions accepted by Greenwoods Legal LLP are subject to our current Terms of Business. VAT Reg No: 161 9287 89.




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