Where Did AI Originate?
Artificial Intelligence, or AI, refers to the ability of machines to perform tasks that typically require human intelligence. This includes learning from data, recognising patterns, making decisions, and solving problems.
AI’s roots stretch back to the 1950s, but one of its biggest breakthroughs came in 1997, when IBM’s Deep Blue defeated Garry Kasparov, the reigning world chess champion. This proved that machines could analyse complex data and make decisions better than humans in certain tasks.
By the early 2000s, companies like Google began using AI to revolutionise search engines. Their systems learned from user behaviour, improving search accuracy and predicting results. These advancements laid the groundwork for the AI we know today, which powers everything from digital assistants to complex industrial systems.
Fast forward to today, and AI is no longer just about software. Companies like NVIDIA, which specialise in creating the powerful chips needed to run AI systems, have become some of the most valuable in the world. Their hardware enables the immense processing power required for advanced AI applications in industries like gaming, healthcare, and research.
While construction hasn’t fully embraced AI yet, it’s starting to show potential. The same technologies driving innovation in other industries—like predictive modelling and automation—could soon reshape how construction projects are planned and executed. It’s an exciting space to watch as the industry begins to catch up.
Current Challenges in the Construction Industry
The Cost of Estimation in Construction
Cost estimation is a critical part of any construction project, but it’s one of the most time-consuming and expensive processes. Builders often spend 10–15% of their working hours preparing quotes and estimates, with no guarantee of winning the project. For many, this unpaid time represents a significant strain on resources, especially for smaller firms or independent contractors. The cost of hiring quantity surveyors further adds to the burden, with fees typically ranging from 0.5% to 2% of a project’s total cost depending on its complexity. Despite this investment, traditional methods are prone to inaccuracies. Misestimations can lead to profit losses of up to 3% on awarded tenders as unforeseen costs and delays arise. Additionally, poor estimates can result in a 30% reduction in win rates, either by overpricing bids or underpricing and risking financial instability during execution
These challenges make it clear that the industry needs a more efficient solution. AI-powered tools and automated estimation software offer a way forward. By analysing historical data, integrating real-time variables, and generating precise cost predictions, AI has the potential to save builders valuable time and significantly reduce errors. While adoption is still in its early stages, the technology’s promise of cost savings and improved accuracy could make it an essential tool for the future of construction.
Tackling Waste in Construction
Construction projects in New Zealand generate significant waste, with 40–50% of all landfill waste coming from construction and demolition. On average, building a single home produces four tonnes of waste, including materials like timber, plasterboard, and packaging. This waste not only impacts the environment but also drives up project costs through inefficient resource use and disposal fees.
Despite the scale of the problem, studies suggest that at least half of this waste could be diverted through better planning, sorting, and recycling. However, achieving this requires systemic changes to how construction projects are planned and executed. Current methods often lack foresight in material use, leading to unnecessary waste and missed opportunities for reuse or recycling.
AI presents a promising solution to these challenges. By analysing project designs, material usage patterns, and local recycling options, AI could optimise resource allocation and significantly reduce waste. Tools powered by AI can also predict where waste is likely to occur and suggest alternatives during the design and construction phases. Over time, these innovations could help the industry move toward a more sustainable and circular model, reducing costs while minimising environmental impact.
Sources:
- PlaceMakers, Creating Accurate Quotes, https://underconstruction.placemakers.co.nz
- RapidQS NZ, The Ultimate Guide to Cost of Quantity Surveyors NZ, https://rapidqs.net
- Rider Levett Bucknall (RLB), Construction Costs to Increase Due to Labour and Material Shortages, https://www.rlb.com
- Ministry of Business, Innovation & Employment (MBIE), Building and Construction Sector Trends, https://www.mbie.govt.nz
- BRANZ, Waste Minimization Reports, https://www.branz.co.nz
