NAVIGATING THE AI ERA Page 30 THE PRACTICAL REALITIES OF AI Page 31 THE AI IS READY, ARE YOU? Page 32
Where articial intelligence and human ingenuity meet, to help you minimize risk and maximize potential.
AMERICAN GLOBAL CANADA
Articial intelligence is changing the way the world works. But, to successfully manage the complex risk of construction, you still need the insight and ingenuity of an experienced broker. At American Global, we provide valuable guidance and best-in-class service to help you meet today’s challenges and achieve tomorrow’s potential. Expect more from your broker.
100% Privately Owned & Solely Construction Focused
• Diverse Technical Resources with Deep Industry Expertise
• Local Presence with a Global Platform
• Collaboration That Drives True Innovation
•
• P3 Awards: Insurance/Risk Advisor of the Year 2023 & 2024
www.americanglobal.ca
Building a better future, together: Human ingenuity and artificial intelligence
The notion of Artificial Intelligence (AI) is something many still associate with sci-fi movies. In a matter of a few short years, AI evolved from serving as the subject of a futuristic fictional plot to becoming an integral part of our daily lives. The pace at which this change has occurred, and the thought of AI’s unlimited potential, is nearly as overwhelming as the concept of AI itself.
The infinite possibilities that AI presents often makes it more difficult for business owners to determine where to start. Understanding both the promise – and pitfalls – of AI must be the first step in the process of change. That’s why American Global is proud to sponsor to this year’s On-Site Construction Technology Report. This report builds on their recent webinar on AI in Construction, where On-Site asked experts to explore and explain how to deploy some of this new technology while setting realistic expectations as to what, where and how AI can best be used in the construction industry.
In my article contained herein, “The AI tools, trends, and tactics for success” (see pg. 32) I also offer some insights on how contractors can utilize the impressive data analytic capabilities of AI to identify issues related to claims, safety, supply chain, and much more.
However, it is important we all realize that AI alone is not the answer to all our problems. It is simply another tool, powerful though it may be, to help us move our businesses and the industry forward, with greater understanding, efficiency and predictability.
As I recently read somewhere, “AI will not take your job, but someone who knows how to use AI will.”
At American Global, we help contractors, owners and developers maximize business potential while minimizing risk. We succeed by combining a talented team of industry experts with innovative technology like our C-RISQ solution, providing clients the best of both worlds… human ingenuity and artificial intelligence.
I hope you find this year’s Construction Technology Report intriguing and informative. I want to thank On-Site for their continued efforts to keep their readers engaged and educated on the latest trends.
Sincerely,
Chris Greene Vice-President, Innovation & Insights American Global
By Ezequiel Machabanski
TNavigating the AI era
Intertwining
human intuition with AI exploration.
he integration of Artificial Intelligence (AI) in general contracting has ushered in a new era of efficiency, precision, and innovation. However, like any powerful technology, it comes with its own set of challenges and risks. For general contractors (GCs) to harness AI effectively while ensuring safety and reliability, a strategic approach is paramount.
AI has the potential to revolutionize general contracting by enhancing project management, optimizing resource allocation, improving safety protocols, and predicting maintenance needs. For example, AI-driven tools can analyze vast datasets to forecast project timelines, identify delays and streamline workflows. AI can also assist in designing more sustainable and cost-effective building solutions.
Nevertheless, the adoption of AI brings challenges general contractors must address. Data privacy, cybersecurity, and the ethical implications of AI are significant concerns. GCs must also integrate AI with existing systems and address workforce apprehensions about potential job displacement. A well-balanced approach is required to leverage AI’s benefits while mitigating related risks.
At its core, AI operates at the intersection of data, applied mathematics, and computer and data science, with data forming the foundation of robust and scalable AI systems. For construction purposes, data such as project plans, material specifications, workforce schedules and financial transactions fuel AI algorithms. Ensuring the privacy and security of this data is crucial; contractors must implement robust data protection measures, including encryption, secure access controls and regular audits to build safe AI systems.
While the industry often focuses on AI model or data-related risks, GCs should allocate resources to advanced cybersecurity solutions and vulnerability assessments. Employee training on data security is equally important, as human error remains a substantial risk. AI systems often make decisions that impact project outcomes, making it critical to ensure that these decisions are ethical and unbiased.
For example, EllisDon has established clear guidelines for AI decision-making processes and regularly reviews outcomes for fairness and accuracy on use case by use case basis. Transparency in AI operations fosters trust among stakeholders, which ultimately accelerates adoption across organizations.
Additionally, involving human oversight in AI decision-making can help prevent biases and errors. At EllisDon, we prioritize scoping use cases with a “human-in-the-loop” approach as an absolute necessity. While AI processes data at unprecedented speeds, human intuition and expertise remain invaluable. A collaborative
approach, where AI assists rather than replaces human decision-making, ensures balanced and ethical outcomes.
The integration of AI with existing systems and processes is vital for maximizing its potential. GCs should conduct thorough assessments of their current technologies and workflows to identify areas where AI can add value. Ensuring interoperability between AI systems and traditional tools facilitates a smoother transition and, though time-consuming, this exercise is essential for successful deployment across organizations. As stated earlier, AI should assist your organization in meeting its goals and keeping its workers safe instead of replacing the functionality of human intuition.
Pilot projects are an effective way to test the integration of AI applications before full-scale implementation. These projects allow GCs to evaluate the performance, identify issues, and adjust. Continuous feedback from project teams is essential to better align with real-world needs.
As AI becomes more mainstream, it is essential to acknowledge and address workforce concerns. The construction industry already faces labour shortages. This, coupled with workers’ apprehensions regarding the impact of AI on their roles, could exacerbate retention challenges. This represents the single biggest risk in deploying AI.
To address this, the industry must develop a comprehensive strategy that includes transparent communication and effective messaging to alleviate these concerns. Engaging employees through open dialogues and involving them in the AI adoption process can foster a sense of ownership and collaboration. Offering training and upskilling programs equips the workforce with the skills needed to work alongside AI technologies, enhancing adaptability and ensuring a smoother transition. Addressing these concerns with sensitivity builds trust and acceptance among employees.
The safe navigation of AI technologies for GCs requires a strategic and multifaceted approach. Prioritizing data privacy and security while ensuring ethical decision-making lays the foundation for building and integrating AI systems. Simultaneously, addressing workforce concerns through engagement and education is essential to fostering acceptance.
By balancing innovation with caution, GCs can harness the power of AI, responsibly. As the industry continues to evolve, a thoughtful and proactive approach to AI will pave the way for a more efficient, ethical, and sustainable future in construction.
Ezequiel Machabanski is the vice-president of insights and analytics at EllisDon.
AI IN CONSTRUCTION THE PRACTICAL REALITIES OF
Webinar explores the practical application and implementation of AI-enabled technologies.
BY ADAM FREILL
In January, On-Site Magazine continued its AI in construction series of webinars, turning to a collective of experts from leading construction technology development companies to explore how Artificial Intelligence (AI) is impacting many of the digital tools available to general contractors in Canada.
The session, sponsored by American Global Canada, saw Hammad Chaudhry, vice-president of market development and partnerships at Timescapes, moderate a conversation with Gabe Guetta, CEO and founder of Salus, Kris Lengieza, global technology evangelist at Procore Technologies, and Steve Smith, director of partnerships at Bluebeam.
The group approached some of the reasons why AI is making inroads into many companies in the construction sector, touching on its implementation, industry buy-in and how to make practical gains through the use of AI-enabled technologies.
“I really do think it’s going to drive the future of productivity,” stated Lengieza as he opened the discussion. “It’s the combination of what we can do in both automation and augmentation that will allow us to be more productive as an industry.”
He explained that AI already commonly used in the industry.
“We’re seeing it show up in the back office and with our project managers and our project engineers for simple things like creating monthly reports or maybe even reviewing a submittal to see if it is accurate against the specification,” he explained.
The pace of adoption of technology is getting faster, and it is touching on all aspects of business, from project plans and details to health and safety, as well as
security, but Smith advised companies to find their own pace.
“Move at the pace that feels right for you,” he said. “Tried-and-true methods have been working for you, but let’s make you faster and better using things like AI.”
“I think the biggest thing that excites me is it empowers the industry around the things that I don’t actually think humans should be doing… the mundane tasks,” added Guetta.
Much as hammer drills make tasks faster, AI can help with productivity on the job. “I think when you look at AI, it’s the next layer of intelligence that we can empower the workforce to have,” he said.
Smith explained that putting themselves in their customer’s shoes helped his company develop its platform. “One of the things that we did is we tried to keep it more in the meat and potatoes vein of AI: What
are our users doing every day? And how can we make that easier?” he explained.
The fact that AI is an evolving tool that is designed to get better at its job by getting trained by the user requires a new approach. “You’ve got to use it the right way, and you’ve got to teach it the things you want it to know,” stated Lengieza.
“You won’t get the full benefits out of it unless you actually interact with it and start training these models,” agreed Guetta.
At the end of the day, it is about efficiency, and ultimately, AI “has to be extremely practical. It has to be useful,” said Smith. “Look at the overall jobs that need to be done, where are the sticking points in your operation?”
To check out the full AI discussion, scan the QR code, or visit the On-Site YouTube channel.
Clockwise from top left: Hammad Chaudhry, vice-president of market development and partnerships at Timescapes, Steve Smith, director of partnerships at Bluebeam, Gabe Guetta, CEO and founder of Salus, and Kris Lengieza, global technology evangelist at Procore Technologies.
AI TOOLS, TRENDS AND TACTICS FOR SUCCESS
The artificial intelligence is ready, are you?
BY CHRIS GREENE
AI is transforming industries at an unprecedented pace, and construction is no exception. However, AI means different things to different people. For some, it’s about large language models (LLMs) like ChatGPT. For others, it’s machine learning, robotics or advanced pattern recognition.
No matter how you define it, the impact is undeniable. While AI isn’t replacing workers outright, it’s clear that workers who know how to leverage AI will have a competitive edge over those who don’t. Despite the industry’s traditional reliance on deterministic (black-andwhite) thinking, the average construction professional can use probability-based AI tools of today.
AI has a role to play in risk management, budgets and schedule improvements, so the next generation of construction workers will need to master AI tools in the same way past generations were taught to memorize times tables, except this time, they’ll have a PhD-level assistant in their pocket.
HISTORY AND CONTEXT
AI’s history goes back to the 1950s, but many people don’t realize they’ve been using AI for decades. Everyday tools like Roomba vacuums, Spotify’s music recommendations and fraud detection algorithms are all powered by AI.
More noticeable was the AI tidal wave that hit not long ago, when ChatGPT reached 1 million users in just five days, accelerating AI’s mainstream popularity. For many, it was their first encounter with generative AI and the realization that an AI assistant could handle creative, analytical and even strategic tasks.
In construction, AI’s presence has been more subtle, but it’s here, and it is growing. Companies like the one I work for are pushing the envelope by integrating platforms that enable contractors to do things like streamline risk assessment and automate compliance tracking, creating new levels of efficiency.
For the average construction professional, the most accessible form of AI today is the large language model. Tools like ChatGPT are transforming how workers manage schedules, draft reports, create budgets and even analyze contracts. Imagine being able to generate professional-grade emails, automate reports or analyze site data, all in minutes.
At American Global, our AI automations have gone a step further by integrating LLMs into client advisory platforms, enabling brokers to provide more precise, data-driven recommendations for insurance and risk management, but the possibilities extend right across the construction spectrum.
For example, estimators can use AI to
generate cost breakdowns, predict future material costs and optimize procurement strategies; project managers can summarize meeting notes, identify risks and communicate project updates; and site supervisors can draft incident reports and site instructions more quickly, focusing their time on higher-value tasks.
At American Global, we use AI to enhance the capabilities of our C-RISQ platform. By pulling in project data, failure data and risk finance technology, C-RISQ identifies patterns that allow project managers and site supervisors to focus on the most critical areas of risk.
The takeaway? Workers who learn to see AI as an extension of themselves—like a second set of hands or additional brain power—will outperform those who don’t.
PROBABILISTIC VERSUS DETERMINISTIC
Construction is a world of absolutes. Either the concrete cures properly or it doesn’t. Either the beam supports the load, or it fails. This deterministic, black-and-white thinking is necessary in areas like structural integrity. But AI’s approach is different— it’s probabilistic, meaning it operates in shades of grey.
AI provides predictions, suggestions and probabilities, not guarantees. This distinction is important. An AI tool predicting the likelihood of project delays
is helpful, but not absolute. Construction professionals must interpret these probabilities and make judgment calls. This requires a shift in mindset. Rather than searching for binary yes-or-no answers, AI asks us to embrace probabilistic thinking and make choices based on the likelihood of outcomes.
LEARNING NEW TOOLS
When we were kids, teachers told us to memorize our multiplication tables because “you won’t always have a calculator.” Today, not only do we have calculators in our pockets, but we have AI models that can solve PhD-level problems, generate essays and provide business strategy—all in seconds.
So, what’s the modern equivalent of, “Learn your times tables?”
It’s, “Learn how to use AI effectively.”
The next generation of workers won’t just need to know how to operate power tools, they will need to know how to use AI tools. That’s why education and training must evolve. This evolution is already in motion at companies like mine.
Our training programs emphasize “prompt engineering.” This involves teaching employees how to ask AI for exactly what they need to streamline workflows, draft policy language or enhance risk analysis.
The shift to incorporate AI into
education and training programs will be crucial for the construction industry’s future. Workers who know how to operate AI-empowered tools will be the leaders of tomorrow’s construction sites.
Risk management is key in construction, and it’s an area where AI’s predictive capabilities can shine. As Mark Bryant, CIO of PCL noted, “AI in construction transforms vision into precision, turning data into decisions and innovation into stronger, smarter, and more sustainable structures for the future.”
AI is driving change in a number of ways. For example, when it comes to claims analysis, AI can review historical claims data and identify patterns, helping contractors anticipate potential losses. If claims data shows a spike in incidents in April, construction firms can investigate causes and prepare better for that period.
AI can also analyze safety reports and Internet of Things (IoT) sensor data to predict potential hazards on-site, enabling proactive measures to reduce risk. Platforms like C-RISQ use AI to integrate feeds and create real-time risk dashboards for site managers.
Predictive models can also analyze weather forecasts, supply chain issues and project schedules to identify potential delays before they occur. The ability to analyze vast datasets is especially impactful. By predicting potential delays,
identifying supply chain bottlenecks and forecasting price fluctuations, AI can reduce the risk of budget overruns and missed deadlines.
AI tools can help predict fluctuations in the cost of materials like steel and concrete, so that contractors can lock in prices before spikes occur. They can also identify supply chain risks in real-time and analyze historical data from similar projects to recommend optimal sequencing of tasks. These capabilities don’t replace the role of human judgment, instead, they empower construction managers with the insights they need to make better, faster decisions.
A CALL TO ACTION
AI is no longer a distant future concept. It’s here, and it’s changing the way we build.
From LLMs that boost personal productivity to predictive analytics that can minimize project risk, AI is a tool that every construction leader should embrace. It’s not a matter of being replaced by AI, but rather, it’s about being replaced by someone who knows how to effectively use AI.
The construction industry has always had its roots in raw materials like wood, concrete and steel. But the most valuable material of the future might just be data. Forward thinking companies like mine are helping clients and contractors realize that those who harness AI to analyze, predict and then act on those data-driven insights, will be the ones who thrive.
As AI continues to evolve, construction firms will face a choice: Adapt and leverage these tools to increase productivity, manage risk and stay ahead of the competition, or be left behind. The choice is clear. The tools are ready. The next generation of builders must be too.
Chris Greene is the vice-president of innovation and insights at American Global, one of the largest privately held insurance and surety brokerage firms in North America specializing in all aspects of construction risk management.
By Jacob Stoller
WCan software make sites safer?
Can tech assist the balancing act between legal compliance and proactive measures?
hen it comes to digitization, safety presents an interesting paradox. On one hand, safety involves a plethora of compliance-related taskwork that’s prime territory for automation. On the other, safety ultimately depends on culture and the strength of personal relationships – two elements that can never be automated.
“Technology is a tool, but we need to rely on the human element to help calibrate it,” says Steve Chaplin, senior vice-president, Health, Safety and Environment, at EllisDon. “Where we can use technology to advance and to make things simpler, we should. But there is a human element to this that I don’t think we ever want AI or any other technology to completely erode.”
When EllisDon’s HSE group polled their operations teams, they found that reducing safety-related administrative work was a key priority.
“The actual ask from our operations teams was, ‘We want our people to be out of the trailer doing their job and meeting with their teams,’” says John Martin, senior HSE director for Eastern Canada at EllisDon. “So, from a technology perspective, what that means is that you don’t want to replace humans in the loop. You want to replace administrative, menial tasks that a person would do at the end of the day but are not really part of the job description. A four-year-old can fill out a form. We don’t hire a site superintendent to do that.”
Technology is a tool, but we need to rely on the human element to help calibrate it.”
Mobile apps can help superintendents spend more time with their teams, and critical safety information readily available to workers in the field.
“When you give workers instant access to all these safety regulations and safe work practices, that makes it much more efficient for everybody,” says Brandon Milner, CIO and senior vice-president, Digital and Data Engineering, at EllisDon. “When they need to know about a chemical they’re using and they’re on the 40th floor, they’re not going to have to run downstairs to the basement when they can pull out their phone and it’s there on a map for them.”
Getting the right fit between the software and the specific workflows in a construction company is complicated, however, particularly for a large national organization like EllisDon.
“There’s not one piece of software that does it all exactly the way
we need it done,” says Milner.
For example, he notes, construction unions don’t allow cell phones. “There’s no software that deals with union, non-union, hourly and salaried employees,” he says.
Requirements are also constantly changing. “We have unique needs that are constantly evolving with the market,” he explains.
“The technology market will never keep up with that pace of constantly evolving changes. So, it’s very important for us to work closely with the technology and the site operations people to make sure we’re constantly out there looking for software that can solve some of the problems some of the times.”
To stay on the leading edge, EllisDon, through its Technology Accelerator Program, partners with construction software startups with promising solutions. The selection criteria, Milner points out, are less about technology and more about construction expertise.
“We pick companies whose leaders understand what our problems are and are interested in helping our operations teams,” he says.
USER PARTICIPATION
Putting an app on a phone is no guarantee that workers will use it, particularly when it comes to submitting reports, but AI technology is evolving to bridge that gap. Kris Lengieza, global technology evangelist at Procore Technologies, explains that software using large language models (LLMs) can provide an alternative to filling out forms.
“What if instead of filling out a form, you could ask an AI [agent] to talk you through a task you are doing today on a job site, and what the risks are,” says Lengieza. “If you’re installing a handrail, for example, the AI could prompt you to explain all the measures you’re taking. Maybe you need to flag the area, make sure you are tied in, and if you’re drilling concrete, making sure you have eye protection and ear protection, and you’re wearing a mask.”
Getting employees to talk with an LLM, however, involves a degree of trust. As Lengieza explains, that all boils down to culture.
“Whenever people take on a technology, they have to ask themselves, ‘What’s in it for me?’” he says. “If they think you’re just collecting data that you don’t really care about, that’s going to be really hard. But if they believe that the company has their best interests in mind, and they’re asking you to use the technology because they want to make sure that you go home safe every day, then there will be a lot less hesitancy.”
Jacob Stoller is principal of StollerStrategies. Send comments to editor@on-sitemag.com.
IThe power of patterns
Industry transformation is coming via AI-enhanced pattern recognition.
n today’s fast-paced, technologically driven world, the construction industry is undergoing a transformative shift. Historically characterized by manual processes and siloed operations, the industry is now embracing digital technologies and artificial intelligence (AI) to solve age-old problems and discover new opportunities. At the heart of this revolution lies the ability to decipher patterns, within data, operations and industries, and to harness them to drive better decisions, innovation and efficiency.
As AI becomes more integrated into the construction sector, it promises not only to streamline processes but also to revolutionize the way leaders approach challenges and opportunities.
A DIGITAL ERA
A substantial amount of the information related to construction projects is now stored, communicated and analyzed in digital formats. Two primary sources of this digital information, or data, come from digital twin components and digital correspondence.
The project digital twin is made up of data from the various component parts of the project’s technology stack. This includes data from pre-construction tools like BIM, scheduling solutions, project management technologies, IoT backbones, reality capture solutions, counter-party risk assessment technologies, just to name a few of the key categories. These component parts spin off massive amounts of data that, once aggregated, allow teams to monitor project productivity and risk in real time.
Meanwhile, digital correspondence—emails, correspondence within the project management platform, and document sharing systems—tracks the day-to-day communications and decisions that drive projects forward. Together, these tools create a treasure trove of data that, if properly harnessed, can unlock insights, drive efficiency and reduce risk.
LEADERS IN DECIPHERING PATTERNS
The construction industry’s greatest leaders have historically excelled at deciphering patterns within their organizations and the construction industry at large. A successful construction leader understands not only their core area of expertise but also how other functions like finance, legal, design/engineering, estimating, project management, procurement/supply chain, quality control and safety intersect and impact outcomes. This holistic understanding enables them to make informed decisions that consider the ripple effects across the organization.
Even the most experienced leaders face limitations, however. Human cognitive capacity can only process so much information, and the growing complexity of construction projects means there is more data than ever before. This is where AI steps in.
ORGANIZING DATA FOR AI INTEGRATION
Leading companies are now working to organize their data into structured systems, or ontologies, that make it optimally accessible to AI. An ontology serves as a framework for categorizing and connecting data, ensuring that it is not only comprehensive but also easy for AI systems to process and analyze. Once data is properly organized, it can be used to train industry-specific AI models. These models act as partners to human decision-makers, providing insights, suggestions, and predictions based on vast amounts of data.
This isn’t about replacing CEOs or project managers—it’s about creating a highly functional CEO assistant, or, as some in the tech sector call them, an agentic AI partner that augments human decision-making with unmatched analytical power. These AI agents, once developed, are an extension of intelligence to all leaders within the organization.
AI’S UNIQUE ABILITIES
As AI continues to advance toward Artificial General Intelligence (AGI), its breadth of knowledge and ability to decipher patterns will surpass anything humans have achieved.
AGI represents a level of intelligence where machines can understand and learn any intellectual task that a human can. In the construction context, this means analyzing data not just within the industry but across sectors, recognizing patterns that would otherwise remain hidden. For example, AI might identify trends in environmental sustainability from other industries and propose innovative ways to reduce waste in construction projects.
At its core, the integration of AI in construction is about driving better decision-making. By processing and analyzing massive datasets, AI systems can provide leaders with actionable insights, enabling them to make decisions faster and with greater confidence.
More importantly, AI has the potential to drive innovation. Innovation stems from recognizing patterns, whether they emerge from within the construction industry or from unrelated fields and translating them into new solutions. By leveraging its expansive knowledge, AI can help organizations identify opportunities for improvement and create innovative strategies that lead to better outcomes.
AI’s role in the construction industry is not about replacing human leaders but about empowering them. By augmenting human decision-making with advanced pattern recognition and cross-industry insights, AI has the potential to revolutionize construction, creating a smarter, more innovative industry.
David Bowcott is the executive vice-president of the Construction Industry Group at Platform Insurance Management. Please send comments to editor@on-sitemag.com.
By David Major, Joseph Campbell and Colleen Williams
TLeveraging AI in construction
Practical legal considerations for project actors.
he future of Canadian construction projects will require the smart implementation of Artificial Intelligence (AI). AI-driven technologies offer immense potential to streamline traditional processes and improve outcomes across all phases of a project’s lifecycle. AI use is already present on construction sites, but it will become even more prevalent as the industry continues to embrace these tools that improve the efficiency and effectiveness of projects.
As the adoption of AI continues to grow, owners and contractors must remain vigilant about the legal framework governing its use, however, particularly regarding the safeguarding of sensitive data and information of clients and other project stakeholders.
IMPLEMENTATION OF AI TOOLS
While many may think of AI as being specifically the realm of generative AI tools, such as ChatGPT or similar search algorithms, the reality is that AI is broader; being any sign of intelligence exhibited by a machine. Through that lens, AI has been deployed on construction projects in Canada for years to enhance produc-
tivity and efficiency related to, among other things, costs, project scheduling and labour management.
AI tools such as artificial neural networks are used to predict cost overruns based on such factors as project size, contract type and the competence level of project managers. These tools are also being used to model sequencing and predict timelines on future projects by analyzing bodies of scheduling data.
The Internet of Things (IoT) and Virtual Design and Construction (VDC) have also contributed to improved monitoring and greater productivity. For example, IOT sensors have been used to monitor site activities, including identifying structural issues such as defects and cracks, resulting in early-warning prevention and ultimately, significant costs savings. VDC provides for a digital design framework where project personnel can model and resolve design and cost issues with machine learning assistance prior to the start of construction.
AI also offers significant opportunities to optimize project resources and enhance safety. Robots, for instance, can be deployed to perform tasks that are repetitive and labour-intensive, such as bricklaying and earth moving. Drones with AI scanners can perform more hazardous safety inspections in dangerous environments, such as high altitudes, confined spaces, areas with toxic materials and structurally compromised buildings.
These innovations will also be critical in helping to address the ongoing construction labour shortage as it will allow the completion of more work with fewer personnel.
AI is also transforming project risk management by streamlining scheduling activities, optimizing resource allocation and providing real-time data insights, enabling construction projects to be completed more efficiently and cost-effectively.
In a recent article discussing AI adoption in the industry, Lina Stinnett described PCL’s HeviLift suite of programs, explaining that it uses data like the project schedule, a database of available cranes and lift objects to create thousands of possible lift
CONTRACTORS & THE LAW
sequences, evaluating the costs and timing impacts of each sequence. It was first used in a project in Alberta where it was reported that lift productivity increased by 227 per cent, and heavy lift schedule duration was reduced by 35 per cent.
AI-driven technologies are transforming construction projects, with immense potential for greater innovation in the future.
LEGAL AND PRIVACY ISSUES
While AI has brought remarkable advancements, its use also brings legal and risk issues that project stakeholders must thoughtfully address.
Data security and privacy concerns are two major challenges, due to the enormous amount of sensitive data and information that is produced, analyzed and distributed. Risk issues surrounding the use of AI tools include determining whether the contractor or the project owner bears responsibility in the event of a problem or data breach involving the AI technology.
Data and privacy issues in the use of AI on construction projects revolve around the collection, storage and sharing of sensitive information, including worker data and proprietary project details. Ensuring compliance with data protection laws and safeguarding against unauthorized access or breaches are key concerns for project stakeholders and should be considered carefully with counsel in advance of proceeding with the AI tool on a project.
Awareness of the applicable legal frameworks and developments is a critical responsibility and ensures stakeholders can effectively address potential risks and challenges in a complex and fast-paced project environment.
In 2022, the Canadian government introduced Bill C-27, the Artificial Intelligence and Data Act (AIDA). AIDA has not yet been enacted, and it may not become law before the government is dissolved in advance of the next election. If it is not enacted, it will be up to a future Canadian government to enact legislation to protect data arising from the use of AI.
Whether passed during this term or not, the introduction of AIDA is a step forward in ensuring that AI systems deployed in Canada are safe and non-discriminatory and will hold parties accountable for how they develop and use these technologies. AIDA serves as a reminder to AI users and the public that careful consideration and robust safeguards are essential to mitigate and eliminate the risks associated with AI.
More recently, in November of 2024 the government launched the Canadian Artificial Intelligence Safety Institute (CAISI). CAISI is part of a larger project to help researchers and businesses develop and adopt AI responsibly.
While Canada does not yet have a dedicated and comprehensive legal framework to address the use of AI, other established laws impact its use. These include the Personal Information Protection and Electronic Documents Act (PIPEDA), competition law, the Criminal Code, intellectual property rights, employment laws and consumer protection law.
Project actors need to understand the importance of safeguard-
PRACTICAL AI CONSIDERATIONS
Be informed
As AI is rapidly developing, it is important for contractors to be, and to remain, informed about the ever-evolving legal and regulatory framework.
Get trained
Effective project management requires training for their teams on best practices for data management, especially for project personnel privy to sensitive information. This can take the form of advising on the use of strong passwords, regularly backing up data, monitoring network systems, and having a plan in the event of a data breach.
Understand key contractual obligations
This is critical to protect parties from liability arising from an incident arising due to the use of AI tools. Parties can further protect themselves by ensuring that contract terms clearly articulate their roles and the roles of AI, with clauses that explicitly state who bears responsibility for defects, damages, and injury caused by an AI tool.
Seek legal counsel
If you are unsure of the implication of AI usage or contractual responsibilities on your project, seek legal counsel. This will allow for a thorough review and understanding of legal and contractual issues and guidance on how to navigate and mitigate against potential risks.
ing client and supplier information, ensuring compliance with these laws and privacy regulations and implementing robust data protection measures. If the use of an AI platform exposes internal data, the contractor could incur serious legal and/or financial repercussions, including liability for data breaches and damage to relationships with stakeholders due to loss of trust.
Accordingly, project actors must be mindful of how they engage with and deploy AI tools in their work.
The use of AI in the construction industry has already brought important productivity, optimization, sustainability and safety enhancements, with immense potential for so much more. Nevertheless, all parties involved in the construction project lifecycle, from the preconstruction stage to completion, need to remain vigilant about the legal risks and privacy issues that come with AI’s usage.
In the short term, Canada is expected to update its legal framework for AI in response to the technology’s rapid evolution and increasing attention on the topic in the United States and abroad. It is therefore imperative that parties to construction projects in Canada leverage AI in a thoughtful and informed manner, and to seek legal counsel to better understand and mitigate against potential risks.
David Major is a partner, Joseph Campbell is counsel, and Colleen Williams is an articling student at BLG. All three work in BLG’s Toronto office. This article provides an overview and is not intended to be exhaustive of the subject matter contained therein. Although care has been taken to ensure accuracy, this article should not be relied upon as legal advice.
