b'THE OFFICIAL NFBA MAGAZINEAnother key ethical issue is transparency andCCPA. By embedding these risk mitigation strategies into accountability. Many AI systems operate as black boxes,company culture and workflows, construction companies making decisions based on complex algorithms that evencan responsibly innovate while minimizing legal, ethical, their developers may struggle to fully explain. This opacityand operational risks.can be problematic in safety-critical environments likeFinally, maintaining human oversight over AI tools construction, where lives may depend on understandingis essential for construction companies to ensure why a particular decision was madesuch as approvingaccountability, accuracy, and compliance with legal and a structural design or halting a project due to riskethical standards. While AI can significantly enhance assessments. decision-making in areas such as safety monitoring, To maintain trust among employees, clients, and regulators,project planning, and hiring, it is not infallible. Errors, construction companies must strive for explainabilitybiases, or misinterpretations by AI systems can have BUSINESS MANAGEMENTin their AI systems. Establishing clear policies on howserious consequences, including legal liability, safety decisions are made, who is responsible for overseeinghazards, and reputational damage. Human oversight AI outputs, and how errors are addressed is essential forallows companies to catch mistakes, interpret AI outputs building a culture of ethical AI use. within the appropriate context, and make judgment Mitigation Strategies calls that machines cannot. Additionally, given the rapidly evolving regulatory landscape surrounding AI, To effectively harness the benefits of AI while minimizingconsulting an attorney is crucial. Legal counsel can help potential downsides, construction companies must adoptconstruction firms navigate complex issues such as data a proactive and strategic approach to risk mitigation.privacy compliance, IP ownership, labor law implications, One of the most important steps is developing clearand liability concerns, ensuring that AI adoption is both and comprehensive contracts with AI vendors andlegally sound and strategically managed. Legal counsel technology partners. These agreements should explicitlyalso can help a company keep up with regulatory changes, outline ownership of AI-generated outputs, liability inthereby further safeguarding operations.the event of system failures, data usage permissions, andConclusionindemnification clauses. Well-drafted contracts can help avoid disputes and provide legal clarity on responsibilitiesAI is poised to revolutionize the construction industry, and rights related to AI systems. offering substantial improvements in efficiency, safety, and Another essential mitigation strategy is conducting regularinnovation. However, its integration brings multifaceted audits and testing of AI tools. These audits should assesslegal, ethical, and operational challenges. From liability the accuracy, fairness, and safety of AI systems, especiallyand IP ownership to data privacy and labor relations, each those used for critical tasks like structural design, projectrisk demands careful attention and proactive management.management, and safety monitoring. Regular evaluationsConstruction companies must embrace a strategic can identify potential flaws or biases in the algorithmsapproachgrounded in legal compliance, transparent before they cause harm. Construction companies alsopolicies, and stakeholder engagementto fully realize should ensure that AI tools are updated frequently andthe benefits of AI while minimizing its pitfalls. Through tested under real-world conditions to confirm reliabilityinformed planning, continuous education, and legal and compliance with evolving regulatory standards. due diligence, the industry can build a future where AI Employee training and engagement are equally crucial.enhances, rather than endangers, construction outcomes.Workers need to understand how AI systems function, their limitations, and how to use them effectively andAbout Kellen Shearinethically. Offering workshops, onboarding sessions, and open forums for feedback can help reduce resistance to AIKellen Shearin, an attorney with Buchanan Ingersoll & adoption while ensuring that staff are aware of legal andRooney PC (www.bipc.com), focuses on defending clients in operational implications. Moreover, involving employeeslabor and employment matters. Based in Charlotte, North in the implementation process helps foster trust andCarolina, he specializes in unfair labor practice charges encourages responsible use of new technologies. before the NLRB, as well as cases involving harassment, Construction companies should invest in robust datadiscrimination, wage and hour claims, and Family and security and compliance programs. This includesMedical Leave Act issues. Shearin also advises clients establishing internal policies for data collection, storage,on union elections, policy development, and compliance, and sharing; implementing cybersecurity measuresensuring they navigate evolving regulations effectively. such as encryption and access controls; and monitoringWith a keen eye on emerging trends, he provides strategic compliance with privacy regulations like the GDPR orguidance on the legal and ethical implications of AI in hiring decisions. 16 / FRAME BUILDER - VOL6 4'