AI and the Construction Industry: Driving Efficiencies
On a recent project, my team was given access to a fully developed 3D building information modeling (BIM) model from the engineering, procurement, and construction (EPC) contractor. At first glance, it looked complete; but when it came time to determine the insulation scope of work, we were still flipping through hundreds of drawings, manually building quantities, and relying on experience to fill in the gaps. Sound familiar?
That disconnect says a lot about where our industry really stands when it comes to digital tools and artificial intelligence (AI).
As the Pre-Construction Director for JT THORPE, a soft crafts national contractor specializing in industrial construction, I have been working for the past 15 years on large-scale industrial projects. I have had the opportunity to work across the full project life cycle, from the owner’s side, to EPC, and now as a contractor. That perspective has given me a clear view of how projects are planned, bid, and executed, and where there are real opportunities to improve efficiency, particularly through the use of digital tools and AI.
I was part of a team from NIA that recently discussed insulation practices and lessons learned, which led into a broader topic that is now coming up more and more: How are new technologies, including AI, being used and influencing how construction projects are planned and executed? If you are like me, you are starting to see these tools show up more often, whether in conversations, project requirements, or internally within your own company.
The intent of this article is to share what I am seeing, highlight where the use of AI and technology exist, specifically with regards to insulation, and ask a few questions that might get readers thinking differently about how we as mechanical insulation professionals can participate and get ahead of the curve. I don’t claim to have all the answers. In fact, most of us are figuring this out in real time.
AI has existed for decades, but recent advances such as generative AI platforms and chat based tools like ChatGPT have brought the technology into everyday discussions. What used to feel like something reserved for tech companies is now being talked about within project teams and at jobsites.
In construction, we have already gone through several waves of technology. Remember when email replaced paper communication, and when digital drawings replaced printed sets? Today, BIM, 3D models, and 4D scheduling tools are the norm, and AI is simply the next step in that progression.
There is also a significant amount of investment behind this shift. According to Research and Markets, the AI in construction market is expected to grow from $3.47 billion in 2025 to $12.45 billion by 2032, covering both software and hardware such as drones and 360 cameras used for capturing real-time progress1.
AI should not be viewed as something that suddenly replaces what we do, but as another tool to help improve day-to-day efficiency. There is a lot of noise around automation and job replacement, but the reality is likely more gradual, particularly in industries like construction, where so much of the work is hands on.
Elon Musk said as much when he predicted, “anything that’s physical, those jobs will exist for a much longer time,”2 than digital jobs—i.e., computer work. This observation is particularly relevant for industries like ours. It does not mean change isn’t coming, but it means we have time to adapt.
If we are thinking in terms of “what can we do now,” the first opportunity is to start small. Understand what tools already exist, use them to improve everyday processes, and build from there.
For example, ask yourself if there are repetitive documentation, recording, or reporting tasks that your company performs on every project—such as timekeeping, recording quantities installed, or quality reporting using photos and videos—that could be performed more efficiently if digitized? There are already a number of platforms available for these purposes, many of which are relatively quick and cost-effective to implement.
Once that first step is taken, those platforms will continue to evolve and improve, and, by association, your company becomes part of that broader shift toward digital and AI-enabled workflows.
Where the Gap Exists for Insulation Contractors
Another important consideration is that owners and EPCs are already investing heavily in digital tools, often supported by dedicated corporate teams.
These tools work well and were largely developed for pipe routing, electrical systems, and structural components. But by the time that information reaches contractors, further down the supply chain, it does not always translate into something usable for insulation execution.
This is particularly true when it comes to heat tracing, equipment insulation, modular systems, and vendor-supplied skids. The model may appear complete, but from the contractor’s perspective, it often doesn’t provide the level of detail needed to plan or price the work accurately.
AI and Digital Tools in the Bidding and Execution Cycle (Contractor Reality)
Let’s talk about another major example…
As insulation contractors, we operate as subcontractors supporting EPCs, general contractors, and, ultimately, the owner. In the bidding phase, we are typically provided drawings and limited quantity information, and expected to turn around pricing quickly.
On some projects, we are now given access to 3D models, which is a step forward. In certain cases, quantities can be pulled directly. But, more often than not, the model is still a visual tool rather than something we can fully rely on for takeoffs—while still working within tight bidding time frames.
So, the reality is, estimating is still largely manual. On larger projects, that can mean working through hundreds or even thousands of drawings to build insulation quantities. That takes time, introduces risk, and often leads to inconsistencies, depending on how the work is interpreted.
Even with tools like Bluebeam, Togal.AI, or BIM viewers, we are still measuring, interpreting, and applying experience to arrive at a number we are comfortable standing behind. These tools are evolving and are beginning to read drawings and extract quantities on our behalf, which has the potential to improve both bidding speed and accuracy. Of course, we would like our respective clients to perform this effort themselves and make this information available to us at the time of bidding, but that battle is for another day!
And that’s just pre award. Post award, the same pattern continues.
Once work starts, we are tracking labor, productivity, and performance every day. In some cases, the client may have systems in place. In many cases, we are still relying on manual processes, whether that is paper timesheets, spreadsheets, or basic reporting compiled at the end of the day.
Using tablets in the field for activities such as digital time tracking and reporting allows data to be captured once and used multiple times, with automated distribution. If your company is not doing so already, I suggest spending some time researching tools specifically for field payroll and timekeeping, GPS tracking of equipment, QR code tagging for labels, and quality and safety reporting.
Beyond day-to-day tools, there are also broader approaches such as Advanced Work Packaging (AWP), described as organizing smaller elements of the project scope into defined multidiscipline work packages that align engineering, procurement, and construction sequencing. By involving insulation contractors earlier via AWP-type processes, project teams can better understand installation requirements, identify constraints, and plan work more effectively.
All this does require some up-front cost and alignment with owners, EPCs, and general
contractors, but it enables greater efficiency and gives contractors the opportunity to directly engage with the digital tools and AI systems already being used upstream. This is a topic that could easily be a separate article in itself, but it is one worth being aware of.
Considerations and Suggestions for Next Steps
So, what can be done?
Have more meaningful interactions with owners, EPCs, and general contractors.
- What software tools are they using?
- Can we use the same software and license for cost effectiveness?
- If we gain access to the software, does it actually help in our execution or planning, or are further improvements required?
- What data do they expect, in what format, and how frequently?
- Where do they see gaps from the contractor side considering advances in technology and AI?
Continue external research and engagement. Stay informed on platforms such as Autodesk and Procore. Schedule time with reps from such companies, and take advantage of free demonstrations and training opportunities to understand what is available today and what is coming next.
Think about what “good” looks like. If we had the ideal software specifically for insulation, what would it realistically do for us?
Consider industry-wide collaboration. Could organizations such as NIA help drive development of insulation-specific tools?
Focus on people.
- Hire individuals comfortable with digital tools. On the non-manual/management side, where do these people come from, and how do we attract them?
- Upskill existing craft and field supervision. What can we do specifically to support them in making their work more efficient?
Drive efforts to perform research with a dedicated “champion” in your organization, and create a roadmap of what you want to achieve, by when. Establish clear goals, with a timeline, and have the champion lead a small committee to seek input from all facets of your organization—from the field to entry-level positions and upper management. Meet regularly until goals are achieved.
Check out NIA resources. NIA has a number of courses available through its Education Center, some of which are free for NIA members to access and some of which are accessible through subscription. I recommend looking into these, as they provide a useful starting point for those looking to get more familiar with the topic.
The steps above are, of course, suggestions we can choose to act upon or not. If we don’t act, though, we will continue to rely on manual processes while others move ahead and gain a competitive advantage.
Conclusion and Key Takeaways
AI and digital construction technologies are already widely in use and are continuing to develop across the construction industry.
Owners, general contractors, EPCs, and engineers are already leveraging these tools, and increased adoption on the contractors’ side will improve visibility into insulation requirements during design and planning, which in turn makes execution more efficient.
For mechanical insulation contractors, adopting digital tools and AI has the potential to reduce manual effort, improve accuracy, and free up time, ultimately leading to better project outcomes.
The path forward does not need to be complex. It starts with becoming more digital in how we work, using tools that already exist, and improving how we capture and manage information.
The companies that start making these changes now, even in small ways, will be better positioned as the industry continues to evolve.
We should strongly consider adapting to the technologies available to us, making sure we are part of that shift, rather than catching up to it later.
Continued collaboration and knowledge sharing will be key in identifying the tools and practices that will improve estimating, planning, and installation coordination, driving overall cost and schedule efficiency.
References
- https://www.researchandmarkets.com/reports/5887278/artificial-intelligence-in-construction-market
- “The Joe Rogan Experience,” Podcast Episode #2054 – Elon Musk, October 31, 2023.