AI strides into construction amid rapid growth and skills shortfalls

AI strides into construction as industry faces massive growth and skills shortfalls

Josh Kanner spoke about AI in construction at the Oracle Edge Customer Summit in Las Vegas. The presentation framed artificial intelligence as a key tool to help the sector manage rapid expansion, close widening workforce gaps and unlock trapped information across projects.

Top lines

The construction industry is described as booming and is projected to grow by $4.2 trillion globally over the next 15 years, according to Global Construction Futures. That expansion arrives at a moment when job vacancies in construction are reported as up 41% year-over-year and a wave of retirements in the construction workforce is described as looming. Against that backdrop, AI is being positioned as a practical set of tools that can improve design, construction and long-term operations.

Why AI matters now

Industry pressures are pushing AI adoption. Cost control remains a primary motivator, and AI is presented as able to identify potential cost overruns early and optimize resource allocation throughout the project lifecycle. A cited study estimates AI-powered predictive analytics can reduce project costs by up to 15%. At the same time, companies are working to break down data silos to increase cross-team collaboration and the democratization of AI tools is making implementation more accessible.

Data frictions and productivity drag

Data fragmentation is a persistent problem. A 2024 study found construction workers spend 18% of their time searching for information. The same study found 43% of workers believe better data access would improve decision-making. AI can help bridge those gaps by converting raw data into actionable insights, analyzing schedules, predicting risks, and optimizing resources to enable a more efficient and attractive work environment.

Across the project lifecycle

AI’s influence is expanding across the entire construction lifecycle. In preconstruction, AI is proving invaluable for feasibility studies, material optimization, and precise cost estimations. During construction, AI can provide real-time progress tracking, predictive analytics for proactive issue prevention, and insightful Building Information Modeling (BIM) analysis. After project completion, AI capabilities such as predictive maintenance schedules and energy monitoring systems can continue to deliver value, optimizing operational efficiency, reducing costs, and improving sustainability.

Safety, quality and sustainability

Safety is a top priority in construction and can be improved through AI’s ability to predict potential risks, monitor equipment performance for early signs of failure, and proactively detect hazards on the jobsite. Improved safety from AI can translate to fewer accidents and a safer work environment. AI can also elevate quality control through meticulous design analysis, AI-powered inspections and increasing use of robotic precision. And because the construction industry accounts for over 20% of global carbon emissions, AI-driven material optimization and energy auditing are positioned as tools to reduce waste and promote more sustainable methods.

Where the field is headed

The transition from standalone point solutions to intelligent platforms that synchronize activities and empower teams with predictive capabilities marks an industry inflection point. The future of AI in construction will hinge on three critical factors: Connection — breaking down data silos to create a unified view of projects and portfolios; Intelligence — leveraging historical and real-time data to power predictive analytics; and Orchestration — synchronizing activities so all parties work together according to central project goals with real-time visibility into changes. Growth will be further driven by increasing integration of AI with BIM and robotics.

Practical steps for contractors

The recommended path for firms is to invest in AI training for their workforce and pilot AI-powered solutions on key projects. The transition from hypothetical to practical is already underway, with pioneering projects demonstrating real benefits. Real-world examples cited include the Burj Khalifa, which employs an AI-powered maintenance system to monitor critical machinery and detect early signs of potential failure to enable proactive maintenance and minimize downtime.

About the speaker and context

Josh Kanner is senior director of product and strategy at Oracle Construction and Engineering. He previously was founder and CEO of Newmetrix before its acquisition by Oracle, and co-founded and was CEO of Vela Systems before it was acquired by Autodesk. The content containing Josh Kanner’s remarks appears as Sponsored Content (a paid section). Sponsored Content is described as a special paid section where industry companies provide high-quality, objective, non-commercial content around topics of interest to the ENR audience. All Sponsored Content is supplied by the advertising company and any opinions expressed are those of the author and do not necessarily reflect the views of ENR or its parent company, BNP Media. Interested parties are invited to contact their local rep to participate in the Sponsored Content section.

Additional page items and local context

The page includes an ilayer/embed with src=”https://industry-jobs.enr.com/api/regionalcareercenter/?&searchregion=all&jobpostings=3&layout=4″, width=”300″, height=”300″, scrolling=”no”. Coinciding local items note that Clark County officials and the Oakland Athletics franchise took another step toward the team’s relocation to Las Vegas, and the development agreement covers construction responsibilities, environmental and public infrastructure, and maintenance. Construction on the Strip stadium has been underway since the June groundbreaking ceremony and officials said the stadium will be ready to welcome fans in time for the 2028 Major League Baseball season.

Separate labor market reporting shows construction jobs in Nevada were down 6.4% (7,100 jobs) year over year through August, according to a report from The Associated General Contractors of America (AGC). Nevada ranked fifth in the country for overall construction jobs lost in that period. The Las Vegas Valley reportedly shed 4,300 jobs from July to August, according to the Nevada Department of Employment, Training and Rehabilitation (DETR).

Bottom line

With growth forecasts and hiring challenges colliding, AI is being presented as a set of practical tools to help the industry manage costs, reduce waste, improve safety and make data-driven decisions. Firms that pilot AI tools now and train their teams are positioned to capture the operational and sustainability benefits described in this coverage.