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Industry insight

ANDREW SKUDDER

RIB CCS

The future of AI and mixed reality in construction in 2022

With ever-evolving technologies, the future is looking bright, and the future of construction is no exception.

What we have seen over recent years is a surge in technological advancement - from things as simple as digitisation of records to more complex things like Building Information Modelling. With these advancements comes the opportunity for optimisation of productivity and profitability.

So, let’s take a closer look at two of the technologies with the most potential for this optimisation: mixed reality and artificial intelligence (AI). We’ll cover what they are, how they’re used, and the benefits they pose for the construction sector in 2022.

Mixed reality refers to the merging of real and virtual worlds. Virtual reality and augmented reality are, in essence, “mixed” to create the mixed reality. For example, using glasses or a screen, you can see the real world with digital elements or information.

It takes augmented reality one step further by allowing the user control over the real and virtual elements in an environment and allowing them to interact.

So, you don’t just see the digital elements and real ones at the same time. You can merge the two. This creates the mixed reality wherein the world you are seeing is neither real nor digital; it is both.

Mixed reality can, of course, be used in a construction setting. Think of the vision you have for your construction site. Previously, 3D models and physical plans could help you to envision what things would look like.

Now, with mixed reality, you can see and experience it, and even adjust it in real time. Using special glasses, people can make changes to their construction plans, and experience a world where their vision comes to life.

What’s great about using a mixed reality view on your construction site is that you can pick up on problems you wouldn’t be able to see through the use of normal 2D blueprints and planning. Your proposed elements are all digitised, and you can see how they would coexist with reality.

The future of mixed reality in a construction setting, then, is a bright one.

We’ve all heard of artificial intelligence, and we know that it is being integrated into almost every sector in the world these days. AI, in a nutshell, is the use of a machine to do certain tasks that would previously have needed a human’s input.

AI is performed through the use of a ‘smart machine’. For a general example, think of simple record logging. Instead of manually logging each bit of information, you can use AI to do it for you.

AI is a way to make things go faster and to alleviate human workload, and it’s evolving and developing every single day.

There are multiple benefits to using artificial intelligence. It can improve crucial things like safety and allow your teams the time to focus on the things that AI can’t do. It helps managers and workers alike by supporting them and making their jobs easier.

The future of AI is exciting, as we are constantly seeing new developments and improvements. In 2022, expect to see it emerging even further.

It’s clear that 2022 and years to follow will see a big surge in technologies like AI and mixed realities. Because the construction sector is so big (and so important), you can expect to see these developments embraced. After all, technology plays a big role in our world today and there are multiple ways it can benefit this specific industry.

DONAVAN ELLIS

SERCO

Asset management supports KSA privatisation efforts

Driven by Vision 2030, a wide range of government entities in the Kingdom of Saudi Arabia are looking to privatise their organisations with the ultimate goal of diversifying revenue sources away from a reliance on oil. In a move that will further stabilise the Kingdom for future generations, privatisation will enable the country to continue to grow exponentially through income generation from new sources.

Privatisation is no small task; it demands a broad range of activities to be completed in order to ensure that operations of these entities are profitable, making them attractive to foreign investors and driving growth.

Like any transaction, the entity looking to privatise and find foreign investment must in the first instance be an attractive proposition, enabling potential investors to conduct their due diligence and be confident that their capital is well placed.

A key aspect of this resides within asset management, and the following outlines the various steps that need to be considered.

Each government entity that seeks to privatise must have a clear and definitive view of the assets under its ownership, their condition, cost to maintain and prospective lifecycle.

Having a clear link between the performance of your assets and bottom line

provides potential investors with a clearer view on the investment that they are about to make, their confidence enhanced by the transparent view of risk associated with the operations, maintenance and longterm reliability of the assets in question.

Though there have been operations and maintenance contracts in place for assets owned by these entities, it is unlikely that the latest in asset management principles has been implemented. The potential risk this poses is high, as the operational cost of assets may hinder the future profit generation of the entity in question.

Like any other aspect of business, the lower the cost associated with asset maintenance and lifecycle, the less the company has to take from its revenue to cover it, therefore improving the profit margin. A company with poorly maintained assets and an inaccurate view on their condition, longevity and potential operational costs makes for a risky – and unlikely – investment opportunity.

From the investor’s perspective, it is then essential that those government entities that wish to privatise seek the expertise of an asset management company to ensure that asset registration, asset condition is accurately recorded, monitored, maintained and improved and that a clear view of potential operating cost is available.

By investing in this process as early as possible, entities seeking privatisation can create both short and long-term value in their organisations in addition to mitigating the risks for investors associated with the

Privatisation is no small task; it demands a broad range of activities to be completed in order to ensure that operations of these entities are profitable, making them attractive to foreign investors and driving growth”

purchase of assets with unknown condition and potential lifespan, this process can also help clients contribute toward smart city strategies, reducing their carbon footprint and realising a range of opportunities to optimise energy consumption.

The sooner that this is done the better, as the historical view provided by periodic audit will further reduce the risk associated with investment; trackable and traceable data surrounding asset condition will further instil confidence that the projected lifespan and operational costs are accurate.

Over and above the creation of auditable asset data is the adherence to international standards and compliance that will provide government entities with an additional feather in the cap when seeking foreign investment to support privatisation activities.

By aligning asset management policies, procedures and activities with recognised international standards, government entities can more easily convey to investors their commitment to quality and compliance whilst adding further credence to the data that they have collected.

Foreign investors can easily recognise attribution to the latest in asset management and financial business practices, again building further confidence that their due diligence prior to investment will return an even smaller level of risk.

Foreign investment is critical in supporting the privatisation activities of the Kingdom of Saudi Arabia. In doing so, diversification of the revenue streams within the Kingdom will mitigate the reliance on oil which, in the long term, will eventually become a much smaller source of revenue than it is now.

Ensuring that assets are correctly categorised and maintained in a manner that improves their value whilst reducing their operational costs is paramount in driving the value of a business seeking privatisation.

Early adoption of the latest in asset management principles will accelerate the privatisation process, building confidence in foreign investors and achieving the privatisation targets of the Saudi government efficiently.

MATTHEW SEXTON

SAY STUDIO

Resimercial gains momentum as employees return to work

Flexible working has taken the forefront in businesses, ongoing restrictions are still causing teams to be dispersed, a major new trend comes from the need to design the Hybrid Office. We have seen a shift from workplace to “culture space.” Employees will increasingly be working a hybrid office, moving between a home-work space and a traditional office building. The latter will become primarily a culture space, providing workers with a social anchor, facilitating connections, enabling learning, and fostering unscripted, innovative collaboration.

With working from home, employees are becoming naturally accustomed to a more casual approach to their working days. This is mirrored in both the physical space and within company culture and patterns of behaviour. They have been given access to an unprecedented amount of choice and can control when, how and where they work and will want this to continue. People will now be looking for a workplace that feels and looks more like a home-from-home.

This combination of residential and commercial design features – resimercial – isn’t a new concept at all and is a design trend that has been gaining momentum for a number of years and its appeal has gained momentum since employees were obliged to work from home.