AI use surges in Australia's construction industry

The latest report from Autodesk and Deloitte reveals a rapid rise in the application of Artificial Intelligence (AI) in Australia's construction industry. It shows that 30% of Australian construction companies are now either trialling or using AI to combat industry challenges such as higher material costs, labour shortages, and disruptions in the global supply chain.

The State of Digital Adoption in the Construction Industry 2024 report, now in its second edition, surveyed 933 construction firms from six markets, including Australia, Singapore, Japan, India, Malaysia, and Hong Kong. It finds that AI and technology adoption have become integral to the success of businesses in the construction sector. Around 61% of the surveyed Australian firms believe AI will help them curb rising costs amid a wider context of financial stress within the sector.

Sumit Oberoi, Senior Manager of Construction Strategy & Partnerships, Asia Pacific at Autodesk, explained the transformative potential of AI in the construction industry. He stated, "Generative AI means that a new project proposal doesn't need to start from scratch, instead leveraging material and pricing based on projects completed by the company with similar specifications."

The report also reveals that a third of Australian construction firms intend to incorporate AI into their operations in the future. Increased efficiency (76%), cost reduction (61%), competitive advantage enhancement (57%), revenue growth (53%), margin improvement (53%), and new idea and insight generation (52%) were highlighted as key advantages expected from AI integration.

David Rumbens, a Partner at Deloitte Access Economics, stated, "If all companies with plans to adopt AI do so, AI will have a similar level of prevalence in the construction industry as data analytics or mobile apps." The report indicates that the upskilling challenge remains a significant barrier, with 76% of businesses highlighting a digital technology-related technical skills gap.

Oberoi underlined the need for construction businesses to act now to ensure AI readiness. He suggested prioritising areas such as piloting projects, appointing digital champions, tracking success measures, and questioning the state of AI readiness. For the industry, the first step towards successful AI implementation is the standardisation of data and the presence of a common data environment for teams, he added.

Other significant findings from the report reveal similar AI adoption trends across Asia Pacific, with 30% of construction firms using or planning to use AI. Additionally, there is a noticeable increase of businesses viewing technology as a facilitator of new project work (38% to 45%) and an enhancer of internal processes (37% to 43%). The adoption of generative AI is projected to reach the levels of foundational technologies like data analytics (47%), construction management software (43%), and mobile apps (40%).