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.
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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.
