THE ADOPTION OF AI: A COMPARATIVE ANALYSIS OF CONSTRUCTION-RELATED COMPANIES

Abstract

The construction industry has seen little digitalisation in the past decade as compared to other industries. This phenomenon propelled this study, which is to probe the adoption rate of AI technology among construction-related firms in Singapore and reasons for the extent of adoption. Due to limited resources and the general low adoption rate of AI among SME construction firms, six construction-related companies were selected for this comparative study. The companies are from different segments of the industry to allow for a more diverse analysis. They include a technology supplier of AI software, a main contractor, a project management consultancy firm, an engineering consultancy firm, a subcontractor, and a statutory board. The data were collected through a questionnaire using a rating scale. Likert Scale analysis using the median revealed that the most important reasons for companies to adopt AI are competitive advantage, improved productivity, and reduce reliance on labour. The most important reasons hindering AI adoption for companies are difficulties in training employees, shortage of skilled AI employees, insufficient economies of scale, insufficient benefits, wait for more extensive adoption, and lack of government incentives. The data was then ranked, and Friedman Test was performed to determine the significance of the reasons. It is concluded that the nine reasons for adopting AI are significantly different while the 14 reasons for not adopting AI are not significantly different. There needs to be a more concerted effort to attract younger and more IT savvy professionals into the industry. The possible measures include providing scholarships, internships, R&D funding, and the revamp of curriculum to incorporate digital construction. Finally, demonstration projects and public procurement may provide more stable demand for construction output to encourage firms to invest in AI technologies.