Artificial intelligence is no longer a futuristic concept in the construction industry. It’s present in the day-to-day workflow of owners, contractors, design professionals, and construction lawyers. As such, the practical question is not “Will we use AI?” but “How can we use it responsibly, and how does it change risk, documentation, and expectations on a project?”
This article offers a brief overview of how generative AI is showing up across the construction industry, including in pre-construction, design development, and project administration, and provides examples of the potential impact AI will have on construction-focused legal work.
Quick Overview of Generative AI
Artificial intelligence (AI) is a broad umbrella for software that performs tasks associated with human judgment, such as recognizing patterns, extracting information, classifying documents, or making predictions.
Generative AI (often powered by “large language models,” or LLMs) goes a step further: it produces new content. Generative AI is known for drafting text, summarizing, translating, and generating structured outputs (like a timeline or issue list) from unstructured inputs or prompts.
For construction industry stakeholders and their lawyers, it helps to think of generative AI as a high-speed assistant for language-heavy work: synthesizing large volumes of project documents, generating first drafts, and accelerating early-stage analysis. But it is not a substitute for professional judgment, and it can be wrong in ways that look convincing.
AI for the Construction Industry
AI is already on the jobsite. Construction industry professionals are harnessing the benefits of AI throughout a project’s progress.
Pre-Construction
Before a project begins, contractors can face challenges with material availability and supply chain management. AI can help contractors analyze historical data and current trends to anticipate potential challenges, such as material shortages, and to suggest procurement strategies. A contractor might use AI to analyze data to help predict and prevent weather disruptions before they arise. These predictive analytics help parties avoid disputes and reinforce their goals, helping projects stay on time and under budget.
Design Development
AI-powered generative tools are also changing how design professionals approach project planning. It’s used with building information modeling (BIM) tools that support digital representations of the physical and functional characteristics of a project. Certain tools (such as OpenSpace, Procore, d5Render, and Foresight) use algorithms to analyze substantial amounts of data to suggest efficient or cost-effective design options. They can also be used for enhanced environmental efforts or sustainability measures. These approaches can aid efforts to reduce material waste, which ultimately helps with producing accurate cost estimates.
Project Management
Construction managers are also using various AI-driven platforms to allocate resources, optimize scheduling, and maintain job-site safety. For instance, some contractors may use hardhat-mounted cameras or other wearable devices (via Buildots, OpenSpace, or CompanyCam) to quickly scan project sites, compile project photos and notes, detect deviations from design, track quantities installed versus planned for billing accuracy, and identify safety concerns. These methods potentially help reduce project disputes and mitigate risks. Contractors may also utilize AI platforms to summarize project notes for other project professionals, review project specifications or submittals, or analyze progress. But construction professionals should be careful to independently verify the results of any AI-generated output.
AI-powered tools help predict potential delays, cost overruns, and safety risks, enabling better decision-making, minimizing disputes, and keeping construction projects on schedule and budget. If you are a construction industry professional considering whether to incorporate AI into your construction operations, consider the following:
- Collaborate with trusted tools – identify platforms that protect confidentiality, offer security and transparency, and allow you to customize preferences;
- Start small – test first and evaluate options;
- Identify priorities – determine primary objectives for AI use: cost efficiency, optimizing resources, scheduling, safety, etc., and
- Consult with legal counsel – seek guidance to ensure compliance with applicable laws, project requirements, and contract provisions.
AI for Construction Lawyers
While the use of AI technologies offers inherent operational and competitive benefits, construction lawyers must be ready to evaluate and address the legal implications of such use and to prepare for the risks their clients may face. Key considerations for construction lawyers include understanding the following:
- What AI tools can do well (summarization, drafting, extraction, organization);
- What they do unreliably (citation accuracy, hallucinations, nuance);
- And how AI use can affect project disputes and potential risk.
In today’s practice, mainstream AI tools are being used to accelerate core tasks and can be very helpful in creating efficiency, particularly as project records become increasingly voluminous. However, there are substantial risks for construction clients as responsibilities can blur, creating potential exposure in the event of a project dispute.
For example, if a design professional uses AI in the design development phase, there may be concerns about the standard of care. Should that be disclosed? Has that been addressed in the contract documents? Who bears the cost in the event of an issue?
Similarly, if a contractor improperly installs project materials or fails to comply with project specifications, but AI actually caused the problem by recommending the wrong instructions or materials, who is responsible? What if the owner required the contractor to use a certain AI platform? And importantly, is there applicable insurance coverage for AI-related disputes?
For lawyers, the implication is clear: the project record is expanding. This includes not only the expected emails and documents, but also structured photo intelligence, searchable site walks, audio and visual recordings, and AI-generated summaries that may become relevant in supporting claims or defenses. In the event of a dispute, discovery regarding the use of AI will likely be necessary, prompting questions about how the AI was trained, whether it was biased, and whether it was used correctly.
AI can help lawyers and construction professionals work faster and organize information better. It can also amplify errors, create new data trails, and shift risk if used casually. The best path forward is pragmatic:
- use AI to accelerate when necessary to facilitate early drafts and summaries,
- keep humans accountable for verification and final decisions,
- protect confidential data,
- and update project controls and contract language as tools continue to mature.
