Artificial intelligence (AI) tools targeted at construction companies continue to get more effective, easier to use, and easier to implement. Insights generated from AI, used well, have the potential to add tremendous value … if someone consumes them correctly.
Imagine this scenario: A general counsel for a large general contractor
noticed inconsistencies with owner agreements executed from a variety of their offices,
nationwide. Even after extensive virtual training, she still observes troubling
concessions being made, adding to the company's risk exposure. A targeted search was
initiated for an AI tool that would assist project teams with aligning to the firm's and
the industry's best practices. The tool found was expensive to deploy at scale, but a
solid business case ensured an effective rollout occurred. Now, the general council can
log into the platform and see that the tool is successfully flagging missing or
problematic language in drafts.
However, during a review of recent executed contracts, the same type of
omissions and inconsistencies were observed across different offices. When the general
counsel digs in a little deeper, she realizes that, when the project executive was
presented with the resulting analysis from the tool, the insights were either ignored,
discounted, or not reviewed at all.
Now this anecdote is fictional, but ask around at your next conference, and you'll find it to be representative of more and more lived experiences as companies continue to invest in and roll out these powerful AI platforms. There are paths from point "A" to point "B," and there are companies out there that have made the commitments necessary to get there. Let's look at one of them.
Correct AI Implementation Is Key
An example of a company that has gone about implementing AI the
"right" way and is now enjoying the results is PCL Construction. PCL Construction's
Special Projects Company Wide Operations Lead Chad Keuler discussed his experience
of getting his division to a place where AI tools are utilized regularly in ways
that benefit a larger population of project and operations staff. Mr. Keuler's
special projects division competitively bids on complicated work, with scopes
ranging anywhere from $10,000 to $15 million, and is delivering revenue of $1.1
billion per year. This team of 600-plus operations staff reviews hundreds of
contracts per year. He noted that, if an opportunity is under $400,000, the job is
assigned fewer people. The ratio between the number of contracts to review versus
the number of qualified people available demanded new, creative, and effective means
of contract review.
The tool that Mr. Keuler and his team moved forward with is AXA
XL's preferred partner, Document Crunch. A key outcome for PCL was empowering its
people, both current and onboarded employees, to review the volume of opportunities
as efficiently and effectively as possible. The team realized that it was imperative
that they find a way to consistently and beneficially apply their 120 years of
contract experience. Additionally, the staff making the call to move forward with an
opportunity was also responsible for propagating the nuances of the contract to the
broader operations team. The AI tool they landed on needed to relay the important
features and controls of the contract in the most consumable way possible.
According to Mr. Keuler, he sees that the AI tool has mitigated
risk and led to a better process and an easier and more consistent onboarding for
new members of the team. "It seemed intangible at the start, but all of a sudden,
the machine starts running, and the benefits become clear. We're really focused on
helping them do their job."
Once it was understood that these AI tools could make executing
the process easier, buy-in increased organically.
After much trial and error, Mr. Keuler found that, to succeed, the
technology needed to take a backseat for a while. They focused on clearly
understanding the process step by step, and everybody needed to recognize their
role. Once the process was mapped out and documented, then AI tools could be
introduced, accelerating key steps. He provided this analogy: "It's like giving a
race car to a 15-year-old kid. There is a good chance that car's not gonna look the
same after it gets around the track, if it gets around the track at all!"
But this evolution is an important part of fitting the tool to an individual organization, and it's critical for success.
The team at Document Crunch explained their perspective:
The construction industry's AI transformation isn't a technology story—it's a people story. What separates the companies getting value from AI from those still struggling? It's about rethinking how organizations—and the people within them—adopt and adapt these tools to solve real problems while improving and automating their current systems and workflows. The companies seeing the greatest return on investment understand that innovation doesn't emerge from the technology itself, but from leaders who build processes and trust, and people who see possibilities and aren't afraid to experiment. This is exactly what we've seen with partners like PCL who have successfully operationalized AI. We're proud that Document Crunch is part of PCL's SOP for reviewing and executing contracts across its projects.
Implement in Steps
Although not every company is going to have the vision to account
for the due diligence described here in their implementation strategy, every company
has people who can ask the questions: What is it that we do? Should we be doing it
that way? How could we be doing it better?
Start with a business or operational concept that requires
attention. Take notice of the fact that the phrase "problem to solve" was not used.
For the AI naysayers, concepts that seem clearly ripe for improvement to you may not
be perceived as problems at all. Driving an AI initiative from the vantage point of
empowering already valuable people and helping people do their jobs can only build
trust that will help deliver AI's potential value end to end. Documenting the
process as a predecessor to leveraging an AI solution ensures that the people using
the tools feel heard.
In other words, the firm is communicating that what an employee
does is so valuable that it should be written down and taught to others. With a
process in place that teams can work to perfect, insights and efficiencies delivered
through AI are not only welcomed but sought after.
By taking these steps, it now becomes far more likely that, when
our fictional general counsel reviews recent executed contracts, the type of
omissions and inconsistencies previously observed across different offices will be a
thing of the past. When people are given a process with a definitive structure,
especially in roles that require expedient decision-making, they become more
creative.
A person's mind is freed from informally developing a
quasi-process while simultaneously trying to make critical decisions. They can focus
on the job at hand and devote their full mental capacity to it. Pairing a
fit-for-purpose AI tool with a process that delivers results supercharges
professionals. It is a scenario where a person could think, "This tool is exactly
what I need." As usage of the tool smooths administrative friction for them, working
at the faster pace they experience with the help of AI will become essential. The
team will have buy-in on the value of the tool and the importance of the process to
the success of their team and the organization.
Opinions expressed in Expert Commentary articles are those of the author and are not necessarily held by the author's employer or IRMI. Expert Commentary articles and other IRMI Online content do not purport to provide legal, accounting, or other professional advice or opinion. If such advice is needed, consult with your attorney, accountant, or other qualified adviser.
Artificial intelligence (AI) tools targeted at construction companies continue to get more effective, easier to use, and easier to implement. Insights generated from AI, used well, have the potential to add tremendous value … if someone consumes them correctly.
Imagine this scenario: A general counsel for a large general contractor noticed inconsistencies with owner agreements executed from a variety of their offices, nationwide. Even after extensive virtual training, she still observes troubling concessions being made, adding to the company's risk exposure. A targeted search was initiated for an AI tool that would assist project teams with aligning to the firm's and the industry's best practices. The tool found was expensive to deploy at scale, but a solid business case ensured an effective rollout occurred. Now, the general council can log into the platform and see that the tool is successfully flagging missing or problematic language in drafts.
However, during a review of recent executed contracts, the same type of omissions and inconsistencies were observed across different offices. When the general counsel digs in a little deeper, she realizes that, when the project executive was presented with the resulting analysis from the tool, the insights were either ignored, discounted, or not reviewed at all.
Now this anecdote is fictional, but ask around at your next conference, and you'll find it to be representative of more and more lived experiences as companies continue to invest in and roll out these powerful AI platforms. There are paths from point "A" to point "B," and there are companies out there that have made the commitments necessary to get there. Let's look at one of them.
Correct AI Implementation Is Key
An example of a company that has gone about implementing AI the "right" way and is now enjoying the results is PCL Construction. PCL Construction's Special Projects Company Wide Operations Lead Chad Keuler discussed his experience of getting his division to a place where AI tools are utilized regularly in ways that benefit a larger population of project and operations staff. Mr. Keuler's special projects division competitively bids on complicated work, with scopes ranging anywhere from $10,000 to $15 million, and is delivering revenue of $1.1 billion per year. This team of 600-plus operations staff reviews hundreds of contracts per year. He noted that, if an opportunity is under $400,000, the job is assigned fewer people. The ratio between the number of contracts to review versus the number of qualified people available demanded new, creative, and effective means of contract review.
The tool that Mr. Keuler and his team moved forward with is AXA XL's preferred partner, Document Crunch. A key outcome for PCL was empowering its people, both current and onboarded employees, to review the volume of opportunities as efficiently and effectively as possible. The team realized that it was imperative that they find a way to consistently and beneficially apply their 120 years of contract experience. Additionally, the staff making the call to move forward with an opportunity was also responsible for propagating the nuances of the contract to the broader operations team. The AI tool they landed on needed to relay the important features and controls of the contract in the most consumable way possible.
According to Mr. Keuler, he sees that the AI tool has mitigated risk and led to a better process and an easier and more consistent onboarding for new members of the team. "It seemed intangible at the start, but all of a sudden, the machine starts running, and the benefits become clear. We're really focused on helping them do their job."
Once it was understood that these AI tools could make executing the process easier, buy-in increased organically.
After much trial and error, Mr. Keuler found that, to succeed, the technology needed to take a backseat for a while. They focused on clearly understanding the process step by step, and everybody needed to recognize their role. Once the process was mapped out and documented, then AI tools could be introduced, accelerating key steps. He provided this analogy: "It's like giving a race car to a 15-year-old kid. There is a good chance that car's not gonna look the same after it gets around the track, if it gets around the track at all!"
But this evolution is an important part of fitting the tool to an individual organization, and it's critical for success.
The team at Document Crunch explained their perspective:
Implement in Steps
Although not every company is going to have the vision to account for the due diligence described here in their implementation strategy, every company has people who can ask the questions: What is it that we do? Should we be doing it that way? How could we be doing it better?
Start with a business or operational concept that requires attention. Take notice of the fact that the phrase "problem to solve" was not used. For the AI naysayers, concepts that seem clearly ripe for improvement to you may not be perceived as problems at all. Driving an AI initiative from the vantage point of empowering already valuable people and helping people do their jobs can only build trust that will help deliver AI's potential value end to end. Documenting the process as a predecessor to leveraging an AI solution ensures that the people using the tools feel heard.
In other words, the firm is communicating that what an employee does is so valuable that it should be written down and taught to others. With a process in place that teams can work to perfect, insights and efficiencies delivered through AI are not only welcomed but sought after.
By taking these steps, it now becomes far more likely that, when our fictional general counsel reviews recent executed contracts, the type of omissions and inconsistencies previously observed across different offices will be a thing of the past. When people are given a process with a definitive structure, especially in roles that require expedient decision-making, they become more creative.
A person's mind is freed from informally developing a quasi-process while simultaneously trying to make critical decisions. They can focus on the job at hand and devote their full mental capacity to it. Pairing a fit-for-purpose AI tool with a process that delivers results supercharges professionals. It is a scenario where a person could think, "This tool is exactly what I need." As usage of the tool smooths administrative friction for them, working at the faster pace they experience with the help of AI will become essential. The team will have buy-in on the value of the tool and the importance of the process to the success of their team and the organization.
Opinions expressed in Expert Commentary articles are those of the author and are not necessarily held by the author's employer or IRMI. Expert Commentary articles and other IRMI Online content do not purport to provide legal, accounting, or other professional advice or opinion. If such advice is needed, consult with your attorney, accountant, or other qualified adviser.