Construction, one insider claims, is the second least digitally savvy sector in the world, just ahead of agriculture. And yet, according to Deloitte research, more Australian construction firms are embracing artificial intelligence (AI) to address persistent industry challenges, with digital technologies promising to transform traditional approaches to design, safety and project management. Surveying 933 construction firms across six markets, the Deloitte State of Digital Adoption in the Construction Industry 2024 research found that 30 per cent of Australian companies are trialling or using AI software to increase efficiencies. While AI adoption is still relatively new in the construction sector, companies are gradually using it in project management and safety applications. With the construction industry contributing more than $140 billion to the Australian economy and employing 1.2 million people, technological innovation has become a survival strategy. According to the research, businesses investing in new technologies reported 1.4 per cent higher revenue growth, and 1 per cent higher profit growth, with more projects delivered on time and under budget, compared to those that are not. Civix, a New Zealand-based startup, has developed groundbreaking AI for land development design that has proven to deliver civil infrastructure projects under time and budget. The company’s Civil AI software, Allsite.ai, represents a quantum leap in infrastructure engineering, according to Civix founder Nick Mattison, dramatically reducing design times and costs. ▲ Civix directors Nick Mattison and Sam Blackbourn. “We’re not just creating another design tool,” Mattison tells The Urban Developer . “We’ve developed algorithms that think like an engineer, but at computer speed. Our software doesn’t just highlight potential conflicts—it proactively resolves them.” The platform’s capabilities are potentially transformative. Where traditional land development design could take up to three months and cost $250 per lot, Civil AI reduces design time to weeks and cuts costs to $15 per lot. “And rather than agents taking land to market with a scheme plan that may have major civil constraints, we can build 3D models for this and accurately schedule each design,” Mattison says. The AI operates through a sophisticated process—analysing site topology; designing road networks; calculating lot grading; optimising earthwork quantities and generating infrastructure network designs. Engineering director and platform creator Sam Blackbourn says the software can make planning preparation up to 100 times faster than traditional methods. “It has the ability to run multiple design options and output full design packages and schedules for each run, so developers and engineers can optimise to find the most cost-effective solution,” Blackbourn says. In one US project, the system saved a client $2 million in earth moving costs by using this feature to balance site design, the firm says. Mattison said the software “makes land development design not just faster, but smarter”. “Imagine being able to test multiple development scenarios in hours, understanding exact costs and constraints before breaking ground. That’s the future we’re building,” Mattison says. More practical applications According to the Deloitte report, AI can significantly enhance safety on construction sites by predicting and preventing potential hazards. ▲ Allsite.ai transform 2D layouts into detailed 3D models using local engineering rules and project parameters. AI-powered tools such as Autodesk’s Construction IQ analyse data from various sources to identify high-risk issues and predict safety incidents. This allows project teams to address safety concerns before they escalate, reducing accidents and improving overall site safety. That sector insider who believes construction is the second least likely to embrace technology is Sunway Property head of digitalisation, development and delivery Ziqing Liew. Sunway is the property arm of Sunway Group, one of Malaysia’s top multi-national property-construction corporations with businesses in 50 locations worldwide across 12 industries.  Liew lauds AI’s potential for safety monitoring among many other practical applications. “We commonly use machine learning algorithms to check various images and video footages from sites to spot safety issues, such as missing helmets, incorrect personal protective equipment and personnel working at height,” Liew says. GHD regional information management and BIM lead, South Queensland Stephen Bloomer says that between 2000 and 2002, 44 per cent of workplace fatalities in the construction industry were related to design. “AI tools like Construction IQ can help prioritise and mitigate these risks,” Bloomer says. Intelligent document management Sunway’s approach extends to knowledge management after it developed a custom AI solution using natural language processing. Liew says Sunway faced challenges in efficiently retrieving information from its extensive database.  The group connected ChatGPT to Autodesk Construction Cloud to make managing data easier and add smarter search tools. ChatGPT helped by understanding what users meant when they searched, giving better and more useful results. ▲ Sunway Property head of digitalisation, development and delivery Ziqing Liew. This upgrade made it much easier to find the right information quickly. It also added features like summaries, pictures, graphs, and links to documents, making it faster and simpler to get the information users needed. “We envision someday that text could actually be translated into back vectors,” Liew says. “We may soon have a time where data entry is no longer relevant … design iterations can be a lot faster and a lot more effective and also compliant to local regulations.” Bloomer also believes this type of machine learning will one day “help us talk to our designs to automate structural elements”. Ethical considerations While Sunway senior engineer William Wong says it’s important to keep demonstrating AI’s benefits to encourage adoption, at Sunway, AI is not replacing jobs, only enhancing them. Liew is more cautious and says early adopters should practice responsible AI use. “Never trust everything generative AI mentions. Teach the concept of responsible AI use and ensure digital teams take ownership of tool implementation,” Liew says. Autodesk director of product management and founding leader of Construction IQ Pat Keaney is a big believer in AI and digitisation. She’s keen to see the industry adopt AI, but offers some perspective. “Applying AI is hard work, and the robots aren’t taking over anytime soon. But I am very optimistic that we will see compelling change in construction in the next five years.” Keaney says “digitalisation is no longer optional”. ▲ Construction IQ founding leader Pat Keaney. “Capturing structured, connected data across project lifecycles is the fundamental first step in leveraging AI’s transformative potential,” Keaney says. “The future of construction is intelligent, efficient, and data driven. Those who embrace AI now will lead the industry tomorrow, delivering projects faster, more accurately, and with unprecedented precision.” A compelling case study comes from Gamuda, a Malaysian engineering and infrastructure company employing more than 5000 people. Gamuda group chief digital officer John Lim Ji Xiong sees near-term opportunities in using large language models to improve document creation and, more importantly, to find and summarise disconnected construction data. “Through advanced analysis, contractors can now access real-time insights that enable smarter decision-making,” Keaney says, “including predictive risk assessment and intelligent project profitability identification.” Keaney says Construction IQ is a good example of AI’s potential. It automatically analyses issues, observations, checklists, and subcontractor assignments to identify and prioritise construction project risk factors daily. “The biggest impact on construction costs and outcomes happens early in the project life cycle,” Keaney says. “The earlier you can make the right decisions, the more likely you are to have successful projects.” And the implications of AI extend beyond individual projects, according to the Deloitte report. Early adopters are already experiencing significant benefits, with projections suggesting AI could help the construction industry increase profitability by an unprecedented 71 per cent over the next decade. With the global population projected to reach 9.7 billion by 2050 and the built environment accounting for 47 per cent of total CO2 emissions, AI offers a path to more sustainable, efficient infrastructure development. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.
