Constructing the Future

The Impact of AI on Homebuilding Techniques

Updated 19.09.2024

Last century, who would have guessed that in 2023, technological innovators and world leaders would need to meet for an AI Safety Summit.

Artificial Intelligence (AI), once the fanciful idea of writers and filmmakers in the world of science fiction, has now become a transformative force in various industries.

Among them is the homebuilding industry, which is arguably experiencing a paradigm shift as AI starts reshaping how we construct and inhabit our living spaces.

In fact, 2024 has seen AI make significant strides in transforming the construction industry, focusing on improving efficiency, safety, and project management. Business Mole explains that, ‘As the sector grapples with challenges like rising costs and labour shortages, embracing new tools and methodologies is not just beneficial; it’s becoming essential.’ But what are these tools and how are they transforming the industry?

In this blog, (written by an actual human, no less), we will explore the evolution of AI in relation to homebuilding, while delving into its benefits and drawbacks within this dynamic and ever evolving industry.

AI's Impact on the Homebuilding Industry – The Beginning of a New Generation

The homebuilding industry, traditionally reliant on manual labour and rigorous planning, is undergoing a technological revolution.  

Element Homes reveals that, ‘The construction industry, including residential construction, has embraced AI to streamline processes, improve efficiency, and enhance outcomes.’  They argue that AI will revolutionise homebuilding, an area that is already benefitting from the many applications this new technology can perform: ‘AI technology is being applied to various aspects of construction, including design, project management, scheduling, cost estimation, quality control, and more.’

AI is playing a pivotal role, introducing innovative solutions to age-old challenges.  From design and planning to construction and maintenance, AI is leaving its imprint on every stage of the homebuilding journey. 

But what benefit does this technology really bring to the housing sector when utilised efficiently, and what are the drawbacks of an industry’s reliance on AI?

Benefits of AI in Homebuilding

There are a number of areas in which AI is benefiting the various stages of the designing and building of modern homes. 

Here, we will explore seven key areas where AI is having a huge impact on the speed and efficiency of processes.

1.      Design Optimisation

As Arch Daily argues: ‘AI is the next evolution in the architect’s toolbox.’  This is because AI algorithms have the ability to analyse vast datasets in order to optimize architectural designs.  As explained by Arch Daily: ‘AI algorithms can be used to identify patterns and trends in the data, make predictions and generate insights that can inform different design decisions.’

As these AI algorithms take into account factors like energy efficiency, sustainability, structural integrity, and aesthetic preferences, they can make informed decisions in a much shorter time frame than is possible by their human counterparts. Leeway Hertz reveals that, ‘The global market for architectural technologies is expected to reach a staggering $7.8 billion by 2027.’ According to Leeway Hertz, ‘One of the most compelling applications of AI in architecture is generative design.’ Generative design uses AI to analyse large sets of data, including site conditions, regulatory building codes, and user preferences. As Leeway Hertz argues, ‘Traditionally, architects would create designs based on their experience and intuition, often limited by their own biases and constraints.’ What this AI technology gives rise to is a gradual shift in the role of the architect, from ‘A creator of singular designs to a curator of AI-generated possibilities.’

The end result is that architects are able to produce homes that are not only visually appealing but also functionally efficient at a higher rate than was previously possible. Architects not using this technology might therefore find their output cannot compare to those that do, which could put them at a significant disadvantage against these competitors.

2.      Project Management and Scheduling

One area of the construction industry where AI is having a hugely positive impact is in project management (CPM), and one of the largest impacts AI is having on CPM is through automation. 

E-architect points out that, ‘Construction managers are responsible for many moving parts,’ but with the use of AI, their workload can be eased through the technology’s proficiency at ‘automating tasks like document management, scheduling, and material ordering.’

As well as automation, AI can improve efficiency in CPM through its advanced ability in analytics.  According to E-architect, ‘By analysing past projects and current job sites, AI can identify trends and predict issues before they happen.’

What this allows CPM professionals to benefit from is the ability to make proactive decisions that can save time and money.  For a real case scenario, E-architect says: ‘If AI identifies that a certain type of material is prone to delays, the construction manager can order it in advance to avoid costly delays.’

AI-driven project management tools can therefore assist the homebuilding industry in helpful and practical ways, such as, creating realistic timelines, anticipating potential delays, and optimising resource allocation.  

This leads to a smoother construction process and, ultimately, faster project completion.

3.     Sustainable Building Practices

Business Mole points out that, ‘Sustainability is no longer just a buzzword in commercial construction; it’s a crucial criterion for success.’ Green buildings in the residential market are much more than a sales gimmick. The sustainability of a home and its builder could be the deciding factor in making or losing a sale. ‘Sustainable buildings offer lower operating costs and improved occupant satisfaction, making them highly attractive to prospective clients,’ highlights Business Mole. And in a world where the cost of living seems to only be rising, the ability to cut costs within the home is an important consideration.

AI is a game-changer on the path to greener building practices and more sustainable homes. As Billion Bricks points out, ‘Artificial Intelligence (AI) is playing a pivotal role in the design of green buildings.   It’s being used to create energy-efficient designs that minimise environmental impact.’ In the aim of energy efficiency, for instance, Billion Bricks explains that, ‘AI algorithms can analyse a multitude of design variables such as building orientation, window placement, and insulation types to optimise energy efficiency.’ As they can quickly analyse this comprehensive data, they are able to create informed designs with optimum efficiency in a much shorter time frame than is possible by humans, making this technology an invaluable tool for the industry.

4.      Predictive Maintenance

AI sensors and analytics can predict and prevent potential maintenance issues in a home.  Sometimes described as ‘machine learning,’ these predictions are made based on a feeding of sample data, into a machine learning system.  According to PTC, ‘These algorithms build models that become familiar enough to identify inefficiencies, suggest accuracy improvements, and even make predictions about future outcomes.’  

These systems are particularly useful in the maintenance of home systems, argues PTC, as, ‘Machine learning can assess historical and current equipment usage data to predict likely future events—such as the need for a service visit, or the breakdown of equipment if the current situation is left unaddressed.’ And as time goes on, and an increasing amount of data is available for the machine learning to consume, ‘These predictions become increasingly accurate and granular.’

From plumbing to electrical systems, AI enables proactive maintenance, reduces the likelihood of costly repairs and improves the overall lifespan of a structure.

5.      Robotics and Automation

One area of AI technology in construction that is expected to grow is that of robotics and automation. Construction Today highlights the fact that, ‘AI-driven robots and drones are already used on some construction sites for tasks such as bricklaying, site surveying, and material transportation.’ However, they go on to reveal that, ‘The Boston Consulting Group predicts that by 2025, up to 30% of construction work could be automated.’ This is expected to significantly increase labour productivity as well as speed up project timelines.

6.      Cost Efficiency

According to briq, there are ‘3 ways AI helps control construction costs.’  The first of these cost-cutting abilities is made possible through the AI’s ability to access real-time financial data for analysis.  By drawing on all data sources in your legacy systems, ‘AI-powered software can quickly connect all your data sources, analyse for discrepancies, alert you to them, and provide you with a real-time window at how your projects and business are performing.’

This data is often gathered by the AI and then fed back to users in an easily digestible format so that company professionals can make informed decisions much sooner than would be possible without the technology.

Secondly, briq argues that AI can ‘Streamline processes and workflows’ by optimising communication and the sharing of data between members of an organisation.  This technology is essential, according to briq, who argues that, ‘Moving out of siloed spreadsheets and connecting your business to a centralised platform where all stakeholders can share data and collaborate on projects is a necessary move for the modern workplace.’

And finally, briq notes that the benefits of ‘Utilising data-driven insights’ can lead to further cost cuttings in the construction industry, with ‘Better decision-making and planning and a deeper understanding of where your business stands and what’s achievable in the future.’

It would seem, therefore, that AI can contribute to significant cost savings in the homebuilding process.  This cost efficiency could even have the long-term benefit of making homeownership more accessible and affordable for consumers, as the prices of properties should naturally come down.

7.      Optimisation of Aftercare Services and Procedures

As we have learnt, there are practical benefits of utilising AI throughout the planning, building and maintenance of properties, but the advancement of this technology can also benefit one the most important aspects of customer care for homebuilders. As Forethought argues, ‘AI is changing the future of customer service for the better and making it possible to improve your customer experience.’

The aftercare service a homebuilder provides is a crucial ingredient for a positive customer experience, and is also carefully regulated by organisations, including, the New Homes Quality Board and the Consumer Code for Home Builders.

Applications such as Spaciable Living use AI to enhance the aftercare service homebuilders provide by ensuring defect reporting is a seamless process for residents and staff alike.

Through the app’s Reported Issues tool, residents can report an issue within the home immediately, and provide supporting images, if they choose to. This will open up a conversation with a ChatBot offering troubleshooting suggestions.  If an issue cannot be resolved, an admin can join the conversation to arrange a call-out. Not only does this minimise the costs associated with repairs, it also helps homebuilders comply with aftercare legislation.

So, there are at least seven areas where AI has found its groove in the construction industry, but are there any drawbacks to utilising this technology?

Drawbacks and Challenges

Although there are many benefits to the use of AI in the construction industry, it is also important to note its possible drawbacks.

We will now explore three areas where these problems are most likely to arise.

Initial Investment and Integration

For homebuilders, implementing AI will normally require a significant financial investment in both the technology itself and then in the training of staff on how to get the most out of that technology.

For smaller companies this might pose a challenge in adopting these technologies, which could potentially create a divide in the industry.  As PlanHub argues, ‘There’s no getting around the high cost of purchasing and implementing AI technologies.’  They go on to say that, ‘Until these tools become more affordable, many companies will be unable to adopt them, even if they would save them money in the long run.’

Like the streaming services we use at home, for homebuilders to gain access to all of the applications they might require, they could find themselves saddled with numerous subscriptions. As those developers with bigger pockets are able to invest in something that will save them, and therefore also generate, more money, the gap between small and large developers widens.

Ethical Considerations and Bias

One of the most worrying outcomes of a reliance on AI is that of perpetuating human bias.  As Forbes reported, ‘In numerous forms, bias may infiltrate algorithms,’ explaining that, ‘AI systems learn to make decisions based on training data, which may contain skewed human decisions or represent historical or social inequities.’ 

In the case of homebuilding, the danger lies in AI algorithms inadvertently choosing unfair outcomes in areas such as design preferences or resource allocation.

It is important that homebuilders using AI address the ethical considerations and ensure fairness.  This is a critical challenge and carries immense importance for the safe integration of AI in the industry.

Job Displacement Concerns

For all of us, the reality of being replaced by automation is becoming an increasingly scary and foreseeable prospect.  And we cannot yet be sure whether our own particular area of expertise will be safe from an AI revolution.  Earlier this year, Fortune Magazine published an article titled, ‘Over 4,000 workers have lost their jobs to AI since May, outplacement firm estimates—and that’s ‘certainly undercounting.’’

The automation of AI in construction processes raises concerns about job displacement, whether that be through machines which can carry out manual tasks, or data-based tools that can generate schedules and plans at a speed impossible for humans.

Striking a balance between technological advancements and preserving employment opportunities for people is a delicate challenge that the industry must carefully navigate.  And as Elon Musk advised in his interview with Prime Minister Rishi Sunak at Bletchley Park for the inaugural AI Safety Summit, it will also likely need an intervention from government to ensure the safety of any AI applications being heavily utilised in industry.  ‘The risk to the population is not zero,’ said Musk.

Finally, as AI continues to chisel its groove in the homebuilding industry, the benefits are substantial, promising more efficient, cost-effective, and sustainable homes.  However, the challenges and drawbacks cannot be ignored.  It’s imperative that the homebuilding sector navigates these complexities carefully to foster responsible AI adoption.  Not only in order to transform the industry but also to addresses ethical considerations and ensure a harmonious integration of technology and craftsmanship.  

The journey towards a future where AI and homebuilding coalesce harmoniously requires a delicate balance between innovation, responsibility, and inclusivity.