As the construction industry approaches 2026, a growing concern among technology leaders is the risk posed by small operational breakdowns that may prove costly to address. The tightening labor market is expected to exacerbate these risks, prompting industry stakeholders to explore artificial intelligence (AI) tools to protect profit margins. This was highlighted during a recent webinar organized by Built By Builders, a network of construction technology companies.
Anna Berger, CEO of Trayd, a construction back office operating system, emphasized the importance of choosing the right tools to enhance productivity on job sites. “You have to do whatever you can, from a software and experience perspective, to create an environment that’s comfortable,” she stated. Accurate labor tracking and material management are essential for providing real-time job costs, which can significantly benefit back office and finance teams.
The effectiveness of these tools hinges on their seamless integration into existing workflows. Berger noted that even minor usability features, such as multiple language options, can significantly accelerate adoption among workers. “When teams look to invest in software, they need to invest in tools that are centering the worker,” she remarked, underscoring the need to consider end-users alongside back office teams.
Onsite safety is another area where AI could play a pivotal role, particularly as the labor shortage leads to the hiring of less-experienced workers. Josh Levy, CEO of Document Crunch, an AI risk reduction platform, pointed out that traditional safety programs have overly focused on compliance rather than actual worker safety. Gabe Guetta, founder and CEO of Salus, a construction safety software provider, echoed this sentiment, suggesting that AI could revitalize safety training by making it more engaging rather than a mere formality. “Safety turned into theater,” Guetta said. “Where AI is today, within the next six months to a year, safety will fundamentally change in the way that it’s performed.”
In the back office, the construction industry faces challenges that require teams to navigate a complex maze of documents to avoid compliance pitfalls. Levy noted that inexperienced staff often struggle with understanding how these documents inform decision-making. “Yes, we have a labor shortage… ultimately what that means is that construction companies are going to have to figure out a way to scale with either less people or figure out a way to scale their people,” he stated, indicating a pressing need for better training and resource allocation.
According to Cameron Page, CEO and founder of Clearstory, a change order management platform, the strain of labor shortages extends beyond the back office. The difficulty in hiring and retaining project engineers and managers can lead to increased burnout among current employees. “There’s more demands on those team members,” Page explained, advocating for technology that improves processes to help companies scale effectively in an increasingly fast-paced environment.
However, the influx of new technologies presents its own challenges, as companies must navigate an array of options. Mike Pink, CEO and founder of SmartPM, an automated construction project controls platform, highlighted the issues of standardization and visibility in a rapidly evolving landscape. “The lack of standardization… is challenging to the people that are actually working in construction,” he remarked. This can create significant disparities between contractors who effectively utilize data and those who do not.
Improving visibility into potential issues before they escalate is crucial for contractors looking to safeguard profits, according to Page. He pointed out that change order exposure often languishes in emails and informal channels before it reaches formal forecasting systems. “That’s one of the big trends to help protect profits in this industry,” Page said, emphasizing the importance of proactive measures to identify projects at risk of overruns.
Involving trade contractors more actively in the process can also enhance problem identification, as noted by Chris Callen, CEO of Plot, a jobsite coordination tool. “A lot of times, [trade contractors] are just the receivers of information,” he observed. By leveraging engagement tools, companies can facilitate a more collaborative approach, enabling trade partners to contribute more meaningfully to project outcomes.
As the construction sector evolves, the integration of advanced technologies and AI tools may redefine workflows and enhance safety and efficiency. Embracing these innovations will be essential for navigating the challenges ahead and harnessing the opportunities presented by a rapidly changing landscape.
See also
Amazon Poised to Invest $50 Billion in OpenAI, Reshaping AI Landscape Amidst Competition
Virginia Beach Mom Sues Character.AI After Son’s Disturbing Chatbot Encounters
Microsoft’s AI Copilot Faces Scrutiny as $50B Investment Sparks Adoption Doubts
Germany”s National Team Prepares for World Cup Qualifiers with Disco Atmosphere
95% of AI Projects Fail in Companies According to MIT
