AI in the Built Environment: From Perception to Practice

The last 18 months have seen AI storm onto the global stage, capturing attention, imagination, and headlines alike. However, when it comes to practical applications, especially in the built environment, real-world examples of transformative AI usage remain relatively scarce.

Why is this the case?

In this article, we take a stab at identifying the key reasons behind this and also propose actions that can help with the effective adoption of AI.

The Perception Gap: Superhuman Tool or Codified Experience?

One significant hurdle has been the perception gap. Many organizations view AI as a miraculous all encompassing tool, capable of solving any and all problems! Unfortunately, this perception does not match reality. At its core, AI is simply past data structured in a way that can inform and enhance future projects. It's the automation of tasks that couldn't previously be automated.

It's the automation of tasks that couldn't previously be automated.

For companies operating in the built world, acknowledging this can be unnerving. Specially because, the billable hours model—a widely adopted business model for architects, engineers, and contractors (AEC)—appears fundamentally challenged by the efficiencies AI promises.

How we move forward? 3 Constructive Actions:

Yet, there's a more constructive lens through which we must view AI - 'the codification of professional experience'. Professionals in the built environment often win projects by showcasing specialized expertise and unique experiences that differentiate them from competitors. AI embodies this concept, but in an ultra-scalable way. It transforms knowledge from past projects into a potent resource for future projects, effectively turbocharging human expertise.

1. Data: The New Oil for the Built Environment

Data has been famously termed "the new oil," and this analogy resonates powerfully in the built environment. While operational AI often receives the limelight, the underlying data that fuels AI's predictive capabilities is arguably even more crucial. The built environment generates enormous amounts of data daily, yet much of it remains locked away on private, on-premises servers, inaccessible and under utilized. To fully leverage AI’s potential, the built world needs to transition from merely storing data to proactively harnessing it for training proprietary AI models. Unlocking and utilizing this hidden treasure trove of data could lead to transformative insights, competitive advantages, and substantial operational efficiencies. A key to this is working with experienced partners in leveraging AI—they may have the operational experience of deploying AI but not necessarily the data, emphasizing the true partnerships required for AI to truly take off in the built world.

The built environment generates enormous amounts of data daily, yet much of it remains locked away on private, on-premises servers, inaccessible and under utilized.

2. Beyond Efficiency: AI's True Value Proposition

Instead of merely seeking efficiencies, AI allows organizations to codify and scale their knowledge, enhancing their competitive edge. Rather than undermining business models by reducing billable hours, AI provides a pathway toward more predictable and profitable engagements. Consider this: the common fear that AI would slash billable hours comes from a genuine human concern—uncertainty about project duration and complexities. Yet, AI can actually resolve such uncertainties by precisely estimating how long certain tasks or portions of projects will take! A bold re-thinking of project estimation may just be the solution here. PMs and Principals need to be bold and say 'We know exactly how much time this part of the process will take as we will leverage AI for this!'

Assuming we are successful in the above, we may approach a future where repetitive tasks, well-trained through AI models, could shift organizations from traditional hourly billing to lump-sum or even value-based pricing. In this scenario, completing projects faster and more efficiently wouldn't penalize businesses; instead, it would reward them, amplifying profitability and client satisfaction. Above all, it would help professionals do what they have always done: automate the low leverage activities to focus on high leverage activities, giving every member on the team a true edge.

3. Productizing Services: A Shift in Thinking

Another transformative opportunity presented by AI involves the ongoing tension between offering a product versus delivering a service. Products are inherently scalable, designed once and sold repeatedly, yet typically require substantial upfront investment. Conversely, services demand minimal initial investment but are less scalable, reliant on continuous human effort. With AI, the built environment industry faces an unprecedented opportunity to 'productize' its traditionally service-oriented offerings.

AI-driven automation can potentially standardize and streamline 80%+ of a traditionally manual service. This shift dramatically increases scalability, boosts profit margins, and expands the volume of projects a small, agile team can handle. The implications are transformative, enabling businesses to blend the best elements of product scalability with the minimal investment profile of traditional services.

Looking Forward: AI's Transformative Potential

We hope this article provided some insights into the key challenges and opportunities in adopting AI for solutions for the built world. A lot of it has to do with the perception of AI, which can be easily changed, specially if leaders in the built world make it their mission to change it.

To truly capitalize on AI's transformative potential, the built environment must:

1. Reframe AI perception from scary disruptor to powerful expertise codification.
   

2. Unlock and leverage data as a critical asset to fuel AI models.
   

3. Move beyond billable hours to profitable, value-driven models enabled by AI.
   

4. Leverage AI to productize services, creating new scalable offerings.

Despite historical resistance to digitization, the built world stands at the brink of an AI-driven transformation. By embracing these technological shifts, the industry can leapfrog traditional methodologies and realize substantial economic gains. Technology, inherently deflationary, promises greater volumes and efficiencies in designing, building, and maintenance—a net positive revolution for the built environment and the broader AEC industry.

About Us

Hammer Missions is a software AI firm helping companies in the built environment leverage drones and AI for assessing existing conditions. Having seen 5000+ projects, we're pleased to be working with leading firms in AEC to streamline and scale the process of facade inspections. If you're looking to learn more about how AI can automate and accelerate your building assessment projects, please get in touch with us below. We look forward to hearing from you.

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