#126 Building the Future: AI, Construction and Law
Dec 10, 2024
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Denis Serkin, a Partner and Chair of International Practice at Peckar & Abramson, dives into the exciting intersection of AI and construction law. He discusses how AI is redefining efficiency in the industry, tackling challenges like labor shortages and the need for regulatory frameworks. Serkin also highlights AI's role in enhancing dispute resolution and the potential for substantial cost savings. With a shift towards data-driven decision-making, he emphasizes the importance of legal guidance in navigating this transformative landscape.
AI is revolutionizing the construction industry by enhancing efficiency in project management, scheduling, and resource allocation despite initial resistance to change.
The integration of AI raises significant legal questions regarding accountability and liability in design errors, necessitating clearer regulations within construction law.
Deep dives
The Role of AI in Construction
Artificial intelligence is transforming various aspects of construction and construction law by acting as a general-purpose technology that significantly influences efficiency and productivity. Its swift evolution means that by the time information is presented, it can quickly become outdated, highlighting the dynamic nature of AI advancements. AI technologies are being integrated into daily operations, enabling construction companies to automate tasks such as project management, scheduling, and resource allocation, thus enhancing decision-making processes. These tools not only assist with immediate project requirements but also lay the groundwork for a future that integrates deeper technological innovations into traditional construction methodologies.
AI Adoption and Resistance in the Industry
Historically, the construction industry has been resistant to change, with productivity metrics stagnating since the 60s and 70s. However, progressive construction firms are increasingly embracing technological advancements, identifying AI as a critical opportunity to enhance their operational capabilities. This shift is driven by a new generation of construction companies that are more agile, willing to adapt, and invest in innovative management techniques. The integration of AI into construction practices is seen as inevitable and necessary for survival in an increasingly competitive marketplace, despite the industry’s long-standing reputation for slow adoption of new technologies.
Legal Implications of AI in Construction Law
The integration of AI into construction raises numerous legal considerations that are still being explored within the legal community. Discussions surrounding liability, particularly regarding errors made in designs produced by AI, highlight the need for legal clarity in this new landscape. As AI tools become common in drafting notices and making crucial project decisions, questions about accountability and the responsibility of individuals remain paramount. The evolving discourse in construction law aims to address these issues, but regulation and statutory guidance have yet to catch up with the rapid technological advancements.
Future of Litigation with AI Insights
As the construction industry increasingly adopts AI technologies, the complexity and volume of data generated will inevitably impact litigation processes. The challenge will include managing the extensive data that exists when disputes arise, raising concerns for legal professionals regarding data retrieval and review efficiency. However, there is optimism that AI can streamline document analysis and early claims identification, leading to better-informed decision-making and earlier resolution of disputes. The potential for AI to enhance data management could ultimately reduce litigation costs, providing significant efficiencies compared to traditional methods.
In this episode of Let’s Get Surety®, we explore the impact of artificial intelligence (AI) on the construction industry and construction law with our guest Denis Serkin, a partner at Peckar & Abramson. Serkin emphasizes how AI is transforming the construction sector, despite its reputation for being resistant to change. He points out that AI tools are already significantly benefiting the design and supply chain aspects of construction. Although the adoption of AI technology may not happen swiftly, its eventual integration is set to influence every facet of the industry. Tune in to learn more about how AI is shaking up construction and construction law practices. Also check out the Virtual Seminar that Denis co-presented titled, "AI in Construction Law: Managing Risks and Opportunities" and these other great episodes discussing technology and AI.
With special guest:
Denis Serkin, Partner, Chair - International Practice, Peckar & Abramson
Hosted by:
Kat Shamapande, Director, Professional Development, NASBP and Mark McCallum, CEO, NASBP
