Implementation of construction-specific AI systems to require multimillion-dollar investments – experts

Artificial intelligence (AI) technologies in construction are currently being used primarily to enhance the efficiency of existing processes, while the implementation of specialized, comprehensive AI systems remains unlikely for now, particularly due to economic factors, said Oleksiy Koval, project manager at Perfect Group.

"AI will likely become a standard component of most software products used by developers. At the same time, proprietary comprehensive AI solutions will be introduced gradually and mainly by large players. As of today, such full-fledged solutions simply do not exist on the market. Even if they do emerge, the question will not only be about technology, but also about economic feasibility," the expert told Interfax-Ukraine.

According to him, such comprehensive systems could integrate resource planning, finances, schedules, contractors, and risks into a single model. Implementing such ERP-class AI systems for a large developer could cost tens of millions of dollars. In addition, annual licensing and support costs could amount to 10–15% of the initial investment.

Koval noted that the development of AI in construction is currently taking place mainly through updates to the software used by developers and the expansion of its functionality through AI technologies.

"Even with a five-year payback horizon, the level of optimization required to build a positive business case currently appears unattainable within existing technologies. That is why companies are choosing an evolutionary approach, gradually enhancing existing systems rather than building comprehensive AI platforms from scratch," Koval explained.

Financing and the need to rethink workflows are the main barriers to widespread adoption of AI technologies in construction, said Dan Saltsev, commercial director of the Kyiv office of Greenville. Although AI has not yet become a driver of the industry, that stage still lies ahead, he believes.

Among promising areas for AI implementation, Saltsev highlighted technologies aimed at improving comfort and safety for residents of residential complexes, as well as the digitalization of document workflows.

"Recently I saw statistics showing that a single development project involves on average between 3,000 and 10,000 documents, each going through stages of revisions and approvals. Up to 80% of approvals are still done manually. So this is currently a huge field for implementing AI and digital tools," the expert noted.

Maria Naumenko, deputy head of the marketing department at Intergal-Bud, described the use of AI in Ukrainian development as moderate. According to her, while nearly everyone uses AI technologies for routine tasks, large-scale implementation is only feasible for major developers with the necessary digital infrastructure and data volumes.

"System integrations, from product to sales, remain the exception. The main reasons are the lack of high-quality data, insufficient digitalization of business processes, and the inertia of the market, where the adoption of innovations is slower than, for example, in the financial sector," she said.

In the coming years, AI tools will move from an experimental level to standard business practice, primarily in marketing and sales, automating advertising campaigns, managing leads, and forecasting demand, Naumenko believes. At the same time, further development of AI in construction depends on current investments by developers in data management.

"In the long term, as development gradually becomes a data-driven industry, AI will be able to cover the entire lifecycle of a project, from construction management to operation. Therefore, companies that invest today in digital infrastructure and data will gain a long-term competitive advantage," the expert noted.

According to Zhanna Kriuchkova, co-owner of construction company Stikon, one of the areas of AI development the company is working on is the application of such technologies in engineering calculations.

"One of the company's leading engineers is researching the automation of structural calculations in the LIRA software suite as part of a PhD dissertation. We see this as building internal expertise and a future intellectual asset for the company," she told Interfax-Ukraine.

At the same time, the construction business is a fairly conservative sector that is often not ready for change, Kriuchkova noted. She sees a realistic scenario for AI development in real estate development as a synergy between human expertise and technology.

"It is important to understand that this is not about blindly implementing any technology. Each tool requires testing and evaluation of practical effectiveness. Ultimately, final decisions will remain with humans for a long time, but the volume of routine work will be significantly reduced. In the near future, we will most likely operate in a hybrid model where human expertise and AI complement each other to achieve results," the expert explained.

According to Hanna Layevska, CEO of Sigma+, realistic prospects for AI development in analytics and design currently lie in design, visualization, preparation of advertising materials, and rendering. At the same time, in technical and engineering fields, artificial intelligence still significantly lags behind human capabilities, she believes.

"In technical, engineering fields and in sales, machines still significantly lag behind humans, both in terms of intelligence and emotional components, the ability for creative thinking and flexible communication. In this sense, I remain somewhat skeptical: people are still far more talented and capable of handling such tasks more effectively," Layevska concluded.