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Artificial Intelligence (AI) is growing relentlessly and impacting the way the construction industry processes and formulates information. While AI can improve efficiency, save time and even make projects safer, it opens the door to new risks, considerations and challenges.

Failure to mitigate AI risks can be very costly. In fact, a from digital consultants Infosys says from a governance perspective based on an all-industry viewpoint, 95 per cent of executives have experienced at least one type of problematic incident from their use of enterprise AI.

Almost three-quarters of those who experienced damage from an enterprise AI deployment rated it at least moderately severe.

“Most of the time (77 per cent) the damage incurred from an AI incident is a direct financial loss to the business; however, executives find reputational damage much more threatening to their business than financial losses.”

This sounds similar to the threats posed in the past by cyber-attacks and ransomware infiltration. In the case of AI, malicious attempts might be made to distort the data used by a company’s AI resources and thereby compromise sensitive project data or disrupt operations. It’s called “Data Poisoning.” 

Data Poisoning could lead to dangerous situations, U.S. construction law firm Bradley, possibly the actual collapse of structures. Adversarial attacks could introduce carefully-crafted inputs designed to deceive an AI system into believing a machine is in good working condition when it is actually about to fail and harm workers onsite.

“Data governance should embrace classification and security as a priority,” international business consultancy Deloitte. “AI and advanced analytics enterprise (AA) are enabling new efficiency and creating new risk management paths. Cyber-physical systems should enhance the delivery and management of connected construction facilities for both greenfield and brownfield projects. Digital security will be considered essential to avoid disruption and raise resilience.”

This is particularly important in a time of supply chain uncertainties.

“��������ion and Infrastructure (C&I) should transform its entire value chain,” Deloitte continues. “Vertical integration needs to break barriers throughout the chain. Digital identity and privilege access management should be deployed to ensure access control while integrating suppliers and contractors.”

Human oversight, data access restrictions and AI access via vetted and trusted technology providers can reduce risk.

“Self-sufficiency approaches in cybersecurity are no longer an option,” concludes Deloitte. “C&I players should invest in hybrid models to ensure they reach a proper level of maturity in cyber security.”

“Exploring the appropriate use of AI in a construction workflow is the first step in adopting AI,” John Paolin, partner with international law firm HKA. “In their highest form, AI systems attempt to simulate human intelligence.”

That can introduce questions surrounding intellectual property rights.

“Who holds the rights?” asks Frank Kalman of the . “AI-generated designs may involve multiple stakeholders — construction firms, AI software developers and project clients — all of whom could claim ownership.”

Kalman suggests rigour regarding contract clarity, the licensing terms of services and the protection of proprietary data.

His message for construction leaders and other industry stakeholders is clear: “Understanding and managing the legal implications of AI is essential to staying competitive in an increasingly digital industry.”

That legal understanding goes beyond the exciting parts concerning AI-generated design. It also includes recognition that AI-generated documents such as scopes of work, RFIs, meeting notes and change orders could be unreliable, E. Peyton Aldrich of Atlanta-based law firm Smith Currie Oles LLP.

“For instance, they sometimes generate false, misleading or fabricated information without any clear warning. Important context is also frequently missed, and the tools often make assumptions that haven’t been stated.”

AI might also overlook or misinterpret important provisions, or misunderstand how certain clauses relate to one another, especially in custom or negotiated contracts, Aldrich writes.

“If a project manager relies on an inaccurate contract summary, the consequences can be serious,” continues Aldrich. “They might miss a deadline, misunderstand a payment obligation, or overlook a clause that shifts risk to their company, leading to waived rights, breach claims or unexpected financial losses.”

A broad of corporate leaders conducted by AI governance platform provider OneTrust found while 75 per cent say team goals have shifted significantly to support faster, safer AI adoption, 82 per cent of them say AI risks have accelerated the need to modernize and improve governance. In terms of action, 98 per cent are expecting budgets to rise significantly to support faster, smarter oversight.

Meanwhile, adoption of AI in construction specifically appears slower than with most industries.

A of 86 senior construction people, comprised of multiple industry-related professions concerning their AI plans, actions and perceptions, found 58 per cent either have not deployed any policy or have not put their planned AI deployment into effect.

Once they get on board, construction projects partners using AI need to recognize the risks associated with AI in their work and take proactive steps to mitigate them.

John Bleasby is a freelance writer. Send comments and Inside and Innovation column ideas to editor@dailycommercialnews.com.