The construction industry continues to grow, and it’s up to businesses to find ways to keep up with demand. Artificial Intelligence (AI) has shown great promise in boosting productivity and profitability across other sectors, so construction industry professionals should recognise its role in enhancing their workflows.

AI’s Impact on the Construction Industry

Technological advancements in construction have been around for a while, manifesting in the equipment workers use. AI is often underrated, partly because professionals place greater importance on hands-on work. However, there are applications where it can enhance both productivity and profitability simultaneously. 

It’s vital to note that only a few professionals have truly recognised its value. In March 2025, 85.6% of construction businesses in the U.K. did not use AI, compared to 75% of companies in other industries. Adopting AI solutions could give an edge against competitors. 

AI Solutions Directed Toward Productivity and Profitability

AI can unlock greater efficiency and revenue when implemented effectively. 

1. Automate Administrative Tasks

AI has been combined with machine learning to automate administrative tasks. It can be especially helpful in construction, where experts believe that contractors are over-reliant on manual data uploading and site records.

By moving papers and emails to digital records, verifying data is faster than ever while minimising delays on-site. Streamlining all information into a single platform can also help multiple teams get on the same page. 

2. Support Enterprise Resource Planning

Accounting and resource management are critical to construction productivity. A study found that 63% of construction and engineering companies are in the market for an ERP solution and on the brink of adopting AI in their project management.

One of the best functions that industry professionals can appreciate in an AI-driven ERP is through enhanced information gathering and analysis. It can help with numerous company processes, such as budgeting, accounts payable, and more. 

3. Improve Site Preparation

Risks can translate into safety hazards that can put workers in harm's way and delay the project. AI can enhance cameras and sensors, helping with site analysis and preparation. It can be used to record relevant information, such as vegetation and animal habitats, for site clearing. 

Soil sample collection and testing are also important, as land conditions can vary in overall structural support. AI can highlight areas containing type A soils, which have a high compressive strength of at least 1.5 tonnes per square foot. 

4. Ensure Compliance

Construction compliance can be the difference between a project moving forward and being cancelled. To maintain profitability, consider integrating AI tools to validate various elements and ensure regulatory approvals. 

Some are used to check approved designs for height and configuration before examination, while others can be used later to detect design drift. While these models are relatively accurate, always have human professionals run a secondary check. 

5. Advance Modular Construction

Modular construction has been a lucrative part of the construction industry, and AI can further optimise the processes behind it. For example, an artificial neural network can generate useful predictions that require pattern recognition and construction learning. 

These predictions could then be used to power robotics for prefabrication and planning. That said, further research is needed to gauge its overall effectiveness. 

Improve the Construction Workplace

AI solutions, such as automation and risk detection, can be transformative for the construction industry, which has long relied on manual tasks. Companies may notice a positive impact toward their overall productivity and profitability in the long run. 

Image © London Construction Magazine Limited

Contributor Insight & Authorship: Evelyn Long Editor-in-Chief at Renovated | Construction, Sustainability & Digital Built Environment Writer