The surge of Artificial Intelligence (AI) development has been well documented in the last 18 months; in fact, the AI market size is projected to reach $9.87bn in 2023, expected to grow by 15.17 per cent between 2023 and 2030.
Based on its rapid development, it is no surprise that AI is impacting and evolving all industries – including architecture and engineering (A&E). The introduction of AI in A&E is quickly making waves, empowering firms to be more informed, more productive and profitable.
However, despite the opportunities and buzz around AI, adoption continues to be a challenge. More than half (53 per cent) of A&E firms say that adoption is a top challenge for their business. This is no surprise with businesses having to combat data availability, lack of employee awareness and implementation complexities – all during the current turbulent business landscape.
However, it needs to be a top priority for A&E firms to overcome these challenges. Failure to leverage AI to streamline the project management lifecycle could leave firms falling behind. To maintain pace with the competition and innovation, leveraging AI to streamline project management and improve operational efficiencies is essential for project leaders in 2024 and beyond.
It’s something we’re laser focused on at Deltek, charting the ways project-based businesses can benefit from leveraging AI technology.
AI adoption
In 2023, research by Finbri found that three in five business owners are planning to use more AI in their business over the next 12 months. Specifically in A&E, 41 per cent identify AI as being very important to their organisation, holding the potential to generate content, inform decisions and prescribe and automate action.
Given 2023’s economic challenges, the rise of AI couldn’t have come at a better time for the project landscape. In 2023, seven in 10 projects have failed – and a huge proportion of these businesses have been impacted by factors outside of their control. AI holds the opportunity to enable these projects to enable operational efficiencies.
AI has the potential to empower more strategic decision making by analysing historical performance and data inputs. For example, if an A&E firm stores all its data in a cohesive platform, AI has the capability to forecast the likelihood of future success, which in turn, could enable organisations to allocate resources, investments and efforts more effectively.
AI’s transformative potential is huge.
How AI can solve A&E challenges
Our research reveals that admin workload is a top challenge for over a third (37 per cent) of A&E firms and project emails is a challenge for over one in three (36 per cent). AI adoption can minimise these challenges with automation, giving project managers more time to focus on the human element of projects. Building relationships, seeking new business and managing crisis situations.
Outside of these challenges, businesses also revealed a heavy reliance on manual data entry. In fact, over half (54 per cent) of A&E firms acknowledged this to be the case.
As AI evolves, it holds the potential to empower project managers, like never before, to have critical project metrics at their fingertips and have unprecedented line of sight into where the project is headed. For example, if a project manager is asked to report on progress against project status and trajectory, AI will enable project managers to ask through a natural language interaction for the relevant information in real-time.
This improves upon the current process of configuring and running traditional reports and hunting for information within the accounting system. In addition, AI holds potential to take this project performance metrics harvesting one step further by predicting project outcomes based on current trajectory and historical data.
Embracing AI’s transformative power
When adopting AI within an A&E firms, it’s important to remember that it’s still a relatively new technology. It’s the role of A&E firms to remain agile and resilient to overcome these challenges. With the A&E industry being so dynamic in 2023 and looking into 2024, maintaining pace with competition is vital and AI is the frontrunner in the battle to win new business.
By adopting cutting-edge technology, through partner integrations or embedded within the business, organisations will showcase their commitment to efficiency and productivity, while staying ahead of the curve. The rapid evolution of AI has presented a learning curve for every business.
We've been charting the ways we think it can best benefit project-based businesses and adapt our products as a result. The key is being on the journey and identifying the biggest benefits. This holistic approach fosters success, resilience, and competitiveness in a rapidly evolving business landscape.
The A&E industry stands on the cusp of a remarkable era fuelled by AI. Those firms who fully embrace its transformative potential will not only survive but thrive in an increasingly competitive landscape. The path forward is clear: seize the opportunities AI offers, automate with confidence, and revolutionise data management. By doing so, project-based businesses will continue to evolve, adapt, and prosper in the age of artificial intelligence.
Bret Tushaus, VP of Product Management, Deltek
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