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AI In Commercial Construction Contracts
The Rise of AI in the Construction Industry
Artificial Intelligence (AI) is permeating every phase of construction — redefining how buildings and projects are designed, managed, and maintained. From generative design platforms and predictive scheduling tools, to AI-powered drones for site safety, these technologies are becoming integral to project delivery. A 2025 McKinsey article and survey found that 78% of global companies use AI in at least one function, while attempting to manage risks such as inaccuracy, intellectual property (IP) infringement or cybersecurity incidents. Yet, most construction contracts fail to address AI use. Traditional forms — AIA, ConsensusDocs, FIDIC — were not written for a world where autonomous systems influence design or execution. Without updated provisions, project stakeholders may face unclear liability, data risks, and disputes over IP ownership. This article offers practical analysis, sample clauses, and insights into how AI-specific contract terms can mitigate risk and facilitate responsible innovation.
Where Is AI Already Being Used?
AI tools can be, and are, used in almost every construction function:
- Design: utilizing tools, such as Autodesk Forma to generate and optimize layouts
- Scheduling: utilizing software, such as ALICE to adjust sequencing based on predictive models
- Site Safety: utilizing drone footage to identify potential hazards and monitor site safety
- Contract Review and Negotiation: utilizing AI tools to highlight risk clauses, and actively compare “competing” provisions
However, with the use of these tools comes increased exposure to errors, cyber threats, and legal ambiguities which must be addressed now before it is too late.
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