“Steel” Yourself: AI is Coming

The construction industry has a labor problem. Contractors are constantly looking to fill gaps— not only in the field—but also in front office and back office roles.

Daniel Kamau, P.Eng, MBA/M.Eng, is founder and CEO of SketchDeck.ai. Read how other steel erectors and fabricators have won bids and reduced estimating time at sketcdeck.ai/ customer-stories.

In many industries, AI works hand-inhand with businesses and employees to increase efficiency and fill skilled labor gaps. For instance, some construction

This data fits into a larger pattern: historically, construction firms have

spent less than 1% of revenues on IT. However, it’s not necessarily a lack of desire, but a lack of options, driving this trend. With few truly innovative, purpose-built tools available, leaders are often left to cobble clunky or outdated programs into a workable solution.

When construction companies do invest in advanced software, they often start with data and project management tools – tools to record hazards, review procedures, run projects, or preemptively predict maintenance needs. While important, these tasks don’t offer the same productivity boost as construction-specific, multi-modal AI (algorithms that process many types of information simultaneously).

Despite the lack of widespread investment, construction’s early forays into AI have already generated transformative effects. Various software can assist firms with project planning and execution, more accurate cost estimation, data and document analysis, and even advanced materials discovery. Companies that have integrated these programs successfully often enjoy boosts to productivity, safety, and sustainability.

And yet, AI’s substantial potential has been undercut by snailpaced innovation, slow adoption, and business’ wariness of advanced AI tools.

So, how does construction solve this problem?

It starts at the top. Industry leaders must be willing to test and adopt AI technologies for their own purposes, and to promote AI education within their ranks. Someone has to stand abreast of the new frontier – and companies that adopt, learn, and grow early will undoubtedly hone a more competitive edge.

AI in Construction: A Case Study in Steel

Victor Garcia, President of Flawless Steel Welding in Denver, Colorado, is an example of a construction leader racing to embrace AI’s potential. His company has integrated AI into nearly every aspect of business – with substantial results to show for it.

For instance, Flawless Steel Welding uses Microsoft Co-Pilot for secure communication, document management, and automated code updates to stay AISC-compliant as a certified fabricator and erector. AI-powered meeting software automates note-taking to improve follow-up with partners and clients. These programs also assist with research, project insights, and even scaling opportunities. “I need an assistant, and AI has been an awesome assistant,” said Garcia.

One of Garcia’s more ambitious projects has been experimenting with AI in Excel. He hopes to create code that will streamline cost analysis by following projects from sketch to estimation to production. “Once I figure that out, I’ll be able to really manage my business by the numbers,” he said.

On the estimation side, Victor has adopted the construction-specific software, LIFT by SketchDeck.AI, to assist in more specialized needs. This AI-powered tool reads 2D engineering drawings and bidding plans, then exports essential data into integrated Bill of Materials (BOMs.) Early case studies show that LIFT can reduce take-off times by 50-95%, allowing erectors like Flawless Steel Welding to focus on high-value tasks, quality control, and client interaction.

Used together, Garcia’s AI suite has enabled him to overcome labor challenges in key areas of his company and position himself for growth. “As a small company, we’re setting the foundation to scale in the future,” he says. “Adopting AI earlier in the process means we’re going to have fewer hiccups and can adapt to a changing technological environment a lot faster.”

The Future of AI in Steel Construction

In 2022, the global AI construction market was valued around $1.3 billion. By 2030, that number is expected to hit $13.5 billion. The companies that stand to benefit most from this AI boom are the ones who adopt – and adapt – early in the game.

“The steel industry is so behind with software, but people who are willing to adopt now, they’re going to be new titans in the industry,” predicts Garcia. “I think [early adopters] are operating the way the entire industry is going to operate in five years.”

Early adopters will also help shape the AI-construction landscape by guiding development of technology that can overcome real-world challenges. Training

LIFT from SketchDeck AI helps automate takeoff tasks by analyzing large documents, calculating weights and volumes, detecting materials, and more.

This last problem, at least, has an easy solution: marketing AI-enabled companies as assets instead of liabilities. “Everyone

says they can get your job done on time and under budget, but do they have the tools to do that?” asks Garcia. “[Companies that use AI] aren’t just saying, ‘Hey, I can save you money.’ No, here’s the proof that I can save you money.”

It's only with the buy-in of these industry leaders that companies can realize the benefits of AI innovation. And it’s only in partnership with on-the-ground firms that AI tools can be built, tested, and properly implemented for maximum results.

As Victor Garcia says, “You can’t get away from AI. We’re tiptoeing into this AI environment, and this is exactly where the industry and society is going to go. I would rather be on the front end of it, trying to learn how to adopt it, than be on the back end trying to stay away from it – because it’s going to happen.”

Tips for Implementing AI Tools

AI offers great promise to companies seeking a competitive edge. But the gap between being willing to work with AI and actually implementing AI can be substantial. The process starts with leadership. Here are suggestions for encouraging success when companies are ready to adopt AI.

Address employees’ concerns. Business leaders can buy into AI – but employees will be the ones using the programs. Leaders can start by communicating their plans to adopt AI and what they hope to achieve. Emphasize that successful adoption will help the business scale and grow and allow skilled workers to refocus on high-value work. And be prepared to field questions about how AI integration will impact current practices.

Upskill your workforce. No one can take advantage of programs they don’t know how to use, so it’s more important than ever to promote or offer general AI education, through online or in-person courses. As the workforce gets familiar with these technologies, businesses will see more successful AI-human partnerships, especially when paired with algorithm-specific training programs.

Have an open-door technology policy, which establishes a culture where workers can clearly express concerns, frustrations, and drawbacks. Leadership can tap these insights to adjust procedures, deploy additional training, or select more viable AI alternatives.

Balance automation and human expertise. Construction leaders should not aim to outsource all human labor – they should look to capitalize on it. AI offers great promise, but algorithms are still machines that require oversight, correction, and a human eye to achieve their promise. Emphasize that the human-AI equation frees workers to focus on higher-value tasks, quality control, and on-time delivery as part of the collaborative partnership.

Adopt tools that cleanly integrate. Start the AI adoption process off right by identifying tools that make sense for your business needs, procedures, and existing software, which minimizes production interruptions and gives workers the best chance for success.