b'THE OFFICIAL NFBA MAGAZINE new nfba discount programcontinued from page: 13Data Privacy and Security Concerns compliant. In addition, new rules may require companies tomembers can start today!The implementation of AI in the construction industrydocument how AI systems make decisions and conduct risk brings significant data privacy and security challenges,assessments, and require that they disclose AI usage to affected particularly given the vast amount of sensitive informationstakeholders. Proactive compliance strategiesincluding legal these systems collect, process, and store. AI tools used forconsultations, internal audits, and regulatory monitoringare project management, workforce monitoring, and predictiveessential to navigate this dynamic environment responsibly maintenance often rely on data from employees, clients, andand effectively.jobsitesincluding biometric data from wearable safetyFinally, the use of AI in hiring processes presents several devices, GPS tracking, financial details, and proprietaryemployment-related concerns for construction companies, blueprints. Without robust data governance practices,particularly in terms of fairness, transparency, and complianceSCANconstruction companies risk violating privacy laws,with labor and antidiscrimination laws. AI-driven tools that BUSINESS MANAGEMENTcompromising sensitive information, and exposing themselvesscreen resumes, assess video interviews, or predict candidate to regulatory penalties and litigation. success may unintentionally perpetuate bias if they are trained One of the most pressing concerns is compliance withon historical data that reflects past discriminatory practices. data protection laws. Regulations such as the General DataThis could result in unfair exclusion of qualified candidates Protection Regulation (GDPR) in Europe and the Californiabased on race, gender, age, or other protected characteristics, Consumer Privacy Act (CCPA) in the United States imposeexposing companies to legal liability under equal employment strict requirements for the collection, use, and sharing ofopportunity laws. Additionally, under statutes like the Illinois personal data. Construction companies using AI must ensureArtificial Intelligence Video Interview Act, employers must that they obtain proper consent from individuals, disclose howobtain informed consent when using AI to analyze interview data will be used, and provide mechanisms for individualsfootage, further emphasizing the need for transparency.to access or delete their information. Failure to comply mayNational Labor Relations Act Concernsresult in substantial fines and reputational harm, especiallyConstruction companies incorporating AI into their in jurisdictions that prioritize consumer data rights. operations must consider the implications of the NationalnfbaAnother major risk involves data breaches and cybersecurityLabor Relations Act (NLRA), which protects employees rightsADthreats. AI systems integrated with cloud platforms, internetto organize, unionize, and engage in collective bargaining. One of things (IoT) devices, and remote access capabilities presentof the primary concerns under the NLRA is job displacement. new vulnerabilities. A successful cyberattack could lead toAs AI automates tasks such as scheduling, project oversight,national frame builder assoc.unauthorized access to construction plans, personnel records,and equipment operation, workers may face reduced hoursDISCOUNT PROGRAMor site conditions, causing not only operational disruptions butor even layoffs. If these changes are implemented without also legal exposure. Additionally, data shared with third-partyconsulting employees or their unions, companies could vendorssuch as AI developers or cloud service providers be accused of undermining collective bargaining rights or introduces further risks if those partners lack strong securityengaging in unfair labor practices.standards or breach contractual obligations. Another significant issue involves the use of AI for employee Regulatory Compliance surveillance and performance monitoring. AI-powered tools Regulatory compliance is a critical concern for constructionthat track productivity, location, or behavior on jobsites may companies adopting AI technologies. The constructioninfringe on workers rights to privacy and can create a chilling industry is subject to a variety of local, state, and federaleffect on organizing efforts. Under the NLRA, employees regulations covering safety, labor practices, environmentalhave the right to discuss working conditions and advocate standards, and data protection. As AI tools increasinglyfor improvements without fear of retaliation or intrusive influence decision-making in these areasfor example,monitoring. If AI systems are used to monitor or penalize determining jobsite safety protocols, automating employeeunion activityintentionally or notit could lead to legal performance tracking, or managing environmental impacts challenges.companies must ensure that their use of AI aligns with existingEthical Considerationslegal obligations. Failure to do so could result in fines, projectAs construction companies increasingly adopt AI, ethical delays, or even legal action. considerations must play a central role in guiding how Compounding the challenge is the rapidly evolving regulatorythese technologies are implemented and used. One of the landscape surrounding AI itself. While comprehensive federalprimary concerns is the potential for algorithmic bias inSOLUTIONS TO STAY ON BUDGETlegislation on AI is still in development in the United States,AI systems. If the data used to train the systems contains several states have enacted laws addressing AI transparency,historical biasessuch as underrepresentation of certain accountability, and data privacy. For example, Californiademographics, or skewed performance metricsAI couldIts hard to find affordable solutions to your operational needs.and Colorado have introduced detailed statutes governinginadvertently perpetuate discrimination in areas like hiring,Thats why with the partnership of NFBA and Excelerate America, you get high-risk AI systems and algorithmic decision-making.task assignments, or performance evaluations. This not Construction companies operating in multiple jurisdictionsonly raises moral questions but also exposes companies todiscounts on the software, programs, and services members love to use.must stay informed of these regulatory differences to remainreputational and legal risks.401K RETIREMENT PLANcontinued on page: 16TECHNOLOGY PURCHASING PROGRAM BUSINESS SOFTWARE14 / FRAME BUILDER - VOL6 4CROWDFUNDING SERVICES'