b'THE OFFICIAL NFBA MAGAZINEcontinued from page: 19by a compound annual growth rate (CAGR) of 39.4%, reaching roughly $422 billion by 2028. Many industries, including construction, recognize opportunities to increase efficiency and profitability by leveraging this tool. A six-year data series conducted by IBM revealed that early adopters of AI reported operating cost savings related to process efficiency, supply chain and production optimization, and labor efficiency. Companies involved in this RESEARCH & TECHNOLOGYstudy reported 6.3 percentage points of direct revenue gains directly attributable to AI on average.Engineeringandconstruction(E&C)leaders predict that AI will have an immense impact on the industry. James Barret, chief innovation officer forsecond decision making, creativity, flexible task Turner Construction, told Construction Dive thatreorientation and interactive communication. Artificial intelligence will transform the industry inWe have potentially hundreds of years before the next 10 years more than any other technologymachines are equipped with an AGI capable of hasinthepastcentury.Inotherwords,thesimulating the human intelligence and behaviors widespread adoption of AI-enhanced operationalnecessary to replace skilled construction labor.processesmaytransformfromacompetitive advantage to a necessity for staying competitive. Addressing Labor Challenges by Enhancing Labor, Not Replacing It Complementing Human SkillsConstructionlaborchallengeshaveplagued There are countless examples of how AI-enhancedtheindustryformorethan100years.These processes can improve construction operations, butchallenges remain pervasive today and appear to most interestingly is how it can address constructionbe getting worse. Theres a widening gap between labor shortages. It may seem counterintuitive toworkersexitingandenteringtheworkforce suggest leveraging a technology that many fear will there are fewer young professionals entering replace construction jobs to address labor shortages. themarkettoreplacearetiringgeneration.Its natural to be concerned about job displacement dueMeanwhile,constructionproductivityis to AI, especially when you consider how robotics anddecreasingthe number of workers required per automation systems have already displaced millionsdollar of construction put in place is increasing of jobs, 1.7 million in manufacturing since 2000. asthevalueofworkdecreases.Theselabor-However,itsimportanttorememberhowrelatedchallengescontributetocontractors ANIisgenerallyonlycapableofcarryingfeeling like theyre doing less work for higher outspecificandcontrolledfunctions.Unlikecosts. With few options to acquire talented and manufacturing,constructionprojectsusuallyexperienced field leaders, contractors need to involvebuildingsomethingthathasneverstart promoting from within their organizations, beenbuiltintheexactsameway,andinaprioritizingthetraininganddevelopmentof dynamic and constantly changing environment. younger generations, while seeking to optimize Along with installing materials by utilizing skillsinternal processes that ultimately result in greater developed from years of experience, skilled tradeproductivity, lower costs and higher profit margins.workers execute tasks that involve intuition, splitWhileAIwillnotbeabletoaddressallthe continued on page: 2120 / FRAME BUILDER - AUG2023'