Building Services: AI Can Do (Almost) Anything

While industries worldwide sprint ahead with integrating artificial intelligence (AI) into the core of their operations, the building and construction (B&C) services sector finds itself at a crucial crossroads, marked by both opportunity and hesitation. Recent findings from L.E.K. Consulting’s Digital Impact Study reveal that the adoption rate of AI across industries is 69% while only 20% of B&C services firms have integrated AI technologies into their operations.

This stark disparity not only underscores the sector’s slow adoption rate but also highlights the untapped potential that AI holds for B&C firms ready to innovate. In this article, we’ll explain how embracing AI strategically is key to unlocking immense value, and we’ll provide you with the steps to start integrating AI into your business’s strategic plan.

Lagging AI adoption among B&C providers

While AI’s transformative influence spans various industries ― from massive data analysis in healthcare to intricate logistics optimization in manufacturing and personalized customer communications in retail ― its adoption within the B&C services sector has been notably slow. According to L.E.K.’s Digital Impact Survey, B&C services providers have a significant “success gap” relative to other industrials service providers, who themselves lag service providers from all industries. Only 6% of B&C services providers qualify as digital progressives,¹ compared to 58% across service providers in all industries and 22% of industrials service providers, with more than 90% of B&C services providers considered digital mainstream² (see Figure 1).

Figure 1. Digital success of service providers by industry (2023)

Examining the expected influence of AI further, more than 50% of industrials digital progressives expect AI to have a transformative effect on their industry and business, yet B&C services providers anticipate that AI will be less influential than industrials respondents more broadly, with just 10% and 22% believing that AI will have a strong impact on the industry and on their businesses, respectively.

When comparing industrials digital progressives (22%) and industrials mainstreamers (78%), the numbers are disparate as well: 8% of mainstream industrials companies believe that AI will influence their industry, while 16% anticipate a favorable outcome for their business (see Figure 2). This data illustrates the widening gap between digital leaders and laggards in the industrials sector and emphasizes the critical need for more widespread and effective AI adoption.

Figure 2. Anticipated level of AI impact among service providers (2023)

AI in action: Practical applications in building services

AI is most frequently deployed in B&C services companies to enhance business resiliency, agility and operational efficiency. For example, AI-driven predictive maintenance systems can anticipate equipment failures before they occur, reducing downtime and maintenance costs, while AI-powered analytics can optimize supply chain operations, improving both speed and flexibility in responding to market demands.

AI’s integration into daily operations bridges the gap between potential and practice, manifesting as a tangible reality across various segments of the industry. For example, L.E.K. partnered with a leading engineering and construction firm to revamp its AI and analytics strategy. This overhaul mitigated inefficiencies and boosted analytics utilization, identifying over $350 million in annual cost savings and showcasing the substantial benefits of sophisticated AI frameworks.

Other examples include:

Operational efficiency. Autodesk Construction Cloud helped Pro Craft Construction capture data in the field to enable data-driven decision-making and digitally focused operating models, streamlining operations and enhancing efficiency in nonmanufacturing processes.
Engineering and maintenance. CBRE’s Smart Facilities Management Solutions manage leases and perform predictive maintenance, using IoT sensors to enhance building efficiency and reduce costs, deployed across vast property portfolios in 2023.
Production optimization. Big River Steel uses AI to optimize steel production, employing sensors and algorithms to refine maintenance scheduling and logistics, which has enhanced environmental protection and cost-effectiveness.
Jobsite automation. Nyfty.ai offers jobsite automation that integrates with scheduling software. AI bots communicate via text to manage tasks, save data and escalate issues when needed.
Predictive maintenance. Skanska has used machine learning advancements to enable predictive maintenance strategies that minimize downtime and optimize equipment performance, essential for operational continuity.

However, as we look at these significant advancements, it becomes crucial to address the challenges that can hinder wider AI adoption.

AI adoption challenges and strategic focus

Navigating the path to widespread AI adoption in the B&C services sector involves overcoming significant barriers. Ethical and legal concerns, safeguarding intellectual property and the challenge of demonstrating clear ROI often hinder firms from fully leveraging AI technologies. Addressing these challenges is essential not only for staying abreast of rapid technological advancements but also for maximizing the strategic benefits AI can offer.

To realize AI’s full potential, B&C services firms must adopt a focused strategy that targets high-impact areas, involving the following:

Benefits sought: Prioritizing AI applications that enhance operational efficiency, improve customer satisfaction and reduce overhead costs.
Barriers overcome: Strategically addressing ethical and legal concerns and protecting intellectual property to ensure compliance and secure competitive advantage.
Targeted strategy: Implementing AI to address specific challenges and directly contribute to business goals, thereby maximizing benefits and minimizing risks.

By strategically addressing these challenges and developing a focused approach, companies in the B&C sector can enhance their technological capabilities and leverage AI to achieve substantial business improvements. In the next section, we’ll outline how B&C companies can start to integrate AI into their businesses.

From potential to practice: Steps to AI integration

For those companies looking to integrate AI effectively, a methodical approach can significantly enhance the likelihood of success (see Figure 3).

Leveraging focused AI for transformative outcomes

The journey to integrating AI in the B&C services sector transcends merely adopting new technology; it’s about strategically deploying AI where it can generate the most value. By meticulously selecting targeted applications and carefully navigating the implementation process, B&C firms can not only enhance operational efficiencies but also foster innovative practices that set new standards in the industry. This strategic focus ensures that AI investments contribute meaningfully to business objectives, driving sustainable growth and competitive advantage.

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Endnotes
¹Defined as those reporting their digital investments as highly successful (scoring 6 or 7 on a scale of 1 to 7)
²Defined as those reporting their digital investments as less successful (scoring 1-5 on a scale of 1 to 7)