New Uses For Artificial Intelligence In The Construction Industry

7 Ways AI Has Potential To Minimize Risk, Disputes & Litigation In Construction

MARLTON, NJ, UNITED STATES, May 12, 2025 /EINPresswire.com/ -- In industry reports by some of the largest consulting companies in the world, including Deloitte, McKinsey and KPMG, the construction industry is identified as arguably the slowest industry to embrace new technology. In their reports, they pinpoint the industry’s fragmentation, analog work culture, the one-off nature of projects and other features as reasons for the industry’s slow pace of incorporating technological advances into its operations and activities.

Yet, according to construction thought leader James Gallagher, Principal at Resolution Management Consultants, a leading construction consulting firm specializing in dispute management and litigation defense, artificial intelligence technology may be different. Gallagher said, “I believe that artificial intelligence technology will prove to be too powerful a cost saver and dispute deterrent for the industry to disregard. AI’s impact on planning, operational efficiencies, change orders, ‘what if’ scenarios and other functions will provide an evolutionary “tool” with the potential to deliver significant value, both somewhat easily and within a short period time.”

Gallagher observes that currently, some of the top factors leading to disputes and litigation in the construction industry are: 1) contract disagreements, 2) inadequate planning, 3) change orders, 4) project delays, 5) unexpected price changes and 6) defective workmanship. Gallagher notes that artificial intelligence has the potential to reduce or eliminate the risk from most of these 7 key areas, with the potential to dramatically create efficiencies, reduce disagreements and strengthen collaboration and project success. He has identified 6 ways AI can enable minimizing or eliminating risk in the construction industry. They include:

1) AI dramatically improves planning.
One of the main causes of disputes is the poor planning underlying its implementation. AI can help the planning team visualize many steps ahead and compare processes and outcomes, well before the project actually begins and resources are expended. The ability to utilize historical cost data and account for project variances can make cost estimating more efficient as well. By adding AI to planning processes, teams will prepare construction strategies and tactics that are more efficient, and with fewer errors than one would have with conventional planning protocol.

2) AI enables more efficient scheduling and updating of scheduling.
AI, especially when utilized within 4D and/or 5D BIM scenarios, can anticipate inefficiencies or flag potential conflicts in scheduling, in greater depth, and then recommend solutions, well before actual activities become clashes or disputes.

3) AI’s analytical skills will more effectively predict potential conflicts and disputes.
AI enables a level of predictive analytics far beyond the scope of conventional project management. Predictive analytics can analyze, compare and contrast vast amounts of data from various sources and then quickly relate it to the project at hand. It can also provide deep insight into a project’s inner workings and analyze patterns to reduce disputes by recommending changes.

4) AI is insightful at contract analysis and disputes.
Contract issues, particularly an omission or improper application of contract terms or delivery systems are some of the leading causes of disputes. AI can “read” the contracts, identify missing or inaccurate elements and make recommendations and revisions. It can also compare a project’s contracts against conventional or prior ones, to insure completion, consistency and compliance.

5) AI can be more effective in communication to the entire team.
With an analog process, changes are noted and written down as specified, which may or may not be communicated to the entire team. Even with BIM, changes can be updated slowly. With AI, not only can changes be noted and made available to the entire team, but also the effects of changes to the next steps will also be updated so everyone will be able to understand their role in the modified plan. This will more effectively prevent clashes and errors, as well as more efficiently make stakeholders aware of how and when their next steps in the process may have changed.

6) AI can monitor and update projects in real time.
In addition to anticipating issues during the planning phases, AI can monitor actual daily work and compare, analyze and update it relative to project goals as well as to relative construction best practices. One can have a plan updated in real time, available literally every instant of work.

7) AI will contribute to machine learning for future improvement.
AI in construction not only offers the potential to enhance efficiency and reduce risk in the project at hand, the machine learning will also be used to improve future projects, helping to minimize risk and disputes there too.

Said Gallagher, “The construction industry should embrace AI technology as an evolutionary new “tool” for our industry…one with the potential to add significant value by driving efficiency, reducing costs and minimizing disputes and litigation. AI just may be the technology that turns the construction industry into a technology industry.”
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About Resolution Management Consultants, Inc.
Resolution Management Consultants, Inc. (RMC) is a nationally recognized consulting firm headquartered in Marlton, NJ. There are two sides to the business: the construction planning and management aspect − helping clients build more successful projects − and the litigation aspect − should matters go to court, providing analysis and testimony as expert witnesses. Founded in 1993 by veterans in the construction, contracting and engineering professions, RMC has assisted numerous private owners, public agencies and contractors in either achieving project goals or resolving cost and time disputes between the contracting parties.
Website: https://www.resmgt.com
LinkedIn: https://www.linkedin.com/company/ResolutionMgt
Twitter: https://x.com/ResolutionMgt
Facebook: https://www.facebook.com/ResolutionMgt

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Leo Levinson
GroupLevinson Public Relations
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