How can you reduce your costs by 20% with AI?

November 8, 2024
6 min
Cover of our webinar “How to reduce your costs by 20% using AI?”

Discover how Artificial Intelligence can reduce your costs, improve your productivity and take your business to the next level!

Alexandre Champoux, CEO and Founder of Civalgo, recently gave A webinar on the subject. He explained how artificial intelligence (AI) can transform the construction industry by significantly reducing operational costs!

Billed as a revolutionary technology, the use of AI offers numerous possibilities, which go far beyond simply automating repetitive tasks (which, let's face it, is already incredible!). Contrary to popular belief, Artificial Intelligence is already a fully-fledged assistant, intelligent and capable of adapting to any situation.

How can AI help you on a daily basis?

AI can help your business! And here's how: it has the ability to analyze and learn from a vast amount of data in real time and history. For the construction sector, this means it can:

  • Assimilate Information About Past Performance
  • Understand the recurring patterns in your processes by analyzing the data it collects
  • Identify the factors that influence the success or failure of a project

This ability to learn allows AI to become more and more accurate and effective as you use it, adapting to the specificities of your business and to each type of project.

Its deep understanding of data allows AI to make multiple predictions, helping to mitigate risks, improve efficiency, and increase productivity:

  • Predicting the duration of a task with high accuracy
  • Anticipating risks
  • Identifying Bottlenecks
  • Monitoring stock levels
  • Follow market trends (material prices, wages, competition, etc.)

All of this makes AI the perfect assistant for planning andResource Allocation. These predictive capabilities allow project managers and business leaders to make informed decisions based on concrete data rather than on simple intuition or personal experiences.

You see, beyond automating processes, AI can do a lot for your construction company!

Artificial intelligence in construction: but does it work?

AI is not presented as a solution to a specific problem and that is its strength! It can be adapted and configured to meet various industry specific needs:

  • Cost estimate
  • Project delivery times
  • Optimizing the supply chain
  • Human resources management
  • Material resource management
  • Equipment management
  • Anomaly Detection
  • Identification of safety risks on construction sites

This flexibility allows construction companies to integrate AI into different aspects of their construction projects, according to their most pressing needs.

In addition, Artificial Intelligence is capable of intervening in the resolution of very complex problems, which involve many codependent variables, which is often the case in construction.

For example, it can optimize the long-term planning of a project by simultaneously considering time and budget constraints, available resources, and task sequencing. It can propose various alternative scenarios in case of unforeseen events, allowing to anticipate and react quickly and effectively to any change.

Reducing your costs with AI: 4 concrete examples.

1. Assisted estimation: AI can quickly analyze historical data and project plans to provide accurate estimates.

2. Optimized planning: With just a few clicks, AI can compile information and deliver an accurate schedule, carrying out 90% of the planning work.

3. Cost reduction: Trials conducted by Civalgo demonstrate that AI is almost 100 times faster than a human planner, reducing costs by 93 to 98% for some stages of work.

4. Substantial savings: On an average of 20 projects, savings can reach between $3,400 and $87,000. A Real Game Changer WhileAvoid cost overruns in construction It is a real challenge.

The shortcomings of Artificial Intelligence: points of vigilance!

Thanks to AI, you can significantly reduce your operational costs, but be careful not to go too fast! Although Artificial Intelligence offers numerous advantages for the construction sector, it is essential to adopt a careful approach and to prepare well for its integration.

The preservation of human know-how

AI Should Not Be Perceived as a Replacing Human Expertise, but rather as a complementary tool. It is crucial to maintain and value the skills and experience of construction professionals. That doesn't stop you from taking advantage of AI capabilities to improve the efficiency and accuracy of your processes! By intelligently combining human expertise with the analytical and predictive capabilities of AI, your construction company can reach a higher level of productivity and innovation.

The introduction of AI can have a significant impact on the morale and motivation of your teams (feeling like they are being replaced by robots, fear of losing jobs or colleagues, etc.). Clear and transparent communication is essential to avoid misunderstandings and concerns. It is important to explain the role of AI as a virtual assistant, do not hesitate to emphasize the fact that it is there to facilitate everyone's work and not to replace employees. This approach can help maintain a positive work environment and promote the integration of this new technology into the business.

The question of responsibility in the event of an error committed by an AI

This is a crucial question. It is necessary to clearly define who bears responsibility in the event of an accident or quality problem:

  • The construction employee who uses AI?
  • The construction company that integrated AI?
  • The AI provider?

This clarification is essential to avoid potential conflicts and to ensure responsible use of technology.

Be careful not to go too fast!

Alexandre recommends a gradual approach for the adoption of AI in construction. Instead of implementing it rudely, start by training your teams to use this new technology. Talk to them about the benefits and risks, make sure they understand how AI will positively impact their work, in short: make sure the transition is smooth!

Before you think about integrating AI, make sure your business is ready to take the plunge. Your digital transformation must be complete and fully functional!

Digital transformation: a crucial step!

La Digital transformation is the first step for construction companies wishing to take full advantage of Artificial Intelligence. In his webinar, Alexandre highlights that this transformation can be done through several systems, including:

  • Project management software
  • Estimation software (such as TPL solutions)
  • Site planning and monitoring software
  • Mobile applications for data entry in the field
  • Etc.

It is strongly recommended to be supported by experts in this digital adoption to ensure the success of this transformation. Team training is also absolutely crucial: you must take the time to follow the training courses offered by the experts who assist you while ensuring the understanding and adherence of your teams.

At Civalgo, we offer tailor-made training courses, designed to be easy and quick to assimilate, as well as personalized support to guide construction companies in their digital transition and their adoption of AI. Of course, we are not the only ones! The important thing is to surround yourself well.

Adopting digital technology with Civalgo?

Civalgo is positioned as a complete solution for the construction industry, especially for civil engineering. The company offers much more than a simple management tool:

Civalgo is positioned as a complete solution for construction companies, in particular for Civil Engineering. Much more than a simple management tool, Civalgo offers A single platform to simplify all your operations :

  • Project management
  • Resource Management
  • Document management
  • Communication
  • Construction site monitoring
  • Timesheets
  • Payroll tracking

And AI is at your fingertips! We are currently working on integrating AI into our platform. New features, capable of reducing planning costs by 93 to 98%, should be available in a few months.

Bonnes raisons d'envisager civalgo pour une transformation numérique

What you need to remember!

The integration of AI in the construction industry promises significant cost savings, improved productivity, and process optimization. However, this transition requires a thoughtful approach, including a solid digital database and adequate team training. With these elements in place, construction companies can expect to achieve savings of up to 20% on their operational costs, while improving their overall efficiency.

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