AI spending in the construction set to grow to US$1 billion by 2024
Following the news that AI-powered construction software company Procure has filed for an IPO (initial public offering), Dr Lil Read, Thematic Research Analyst at GlobalData, a leading data and analytics company, offers her view:
โProcore is the embodiment of โright company at the right timeโ. While COVID-19 initially postponed Procoreโs IPO, it could now be a driver for its success. The companyโs AI-powered construction management software has been a lifeline for the construction industry in the same way that collaboration tools and tech enablement have been a lifeline for almost every sector.
โThe construction sector has adopted AI at a snailโs pace. However, AI has the potential to deliver tangible benefits at every step of the construction value chain. GlobalData predicts that construction companies will spend $1bn on AI platforms by 2024, up from $436m in 2019, representing a compound annual growth rate (CAGR) between 2019 and 2024 of 19.2%.
โAs the construction value chain is fragmented, effective collaboration and communication between multiple stakeholders is key. Lots of small wins at each step of the broken value chain can add up to big wins in construction, a sector known for having problems delivering on time and on budget.
โGlobalData has identified Procore as a leading company in its artificial intelligence (AI) in construction report. Of the themes discussed in the report, COVID-19, the future of work and collaboration tools, the internet of things (IoT), and AI are the key drivers of Procoreโs IPO.โ
