AI’s Role in Capital Projects: Transforming Development and Construction

By Brian Gallagher | July 22, 2025

Artificial intelligence (AI) is evolving from an emerging technology to a fundamental driver of efficiency, much like search engines and cloud computing before it. While AI adoption is accelerating across many industries, the engineering and construction sectors have lagged. A recent study by McKinsey & Company, Artificial Intelligence: Construction Technology’s Next Frontier, highlights this disparity, noting that AI’s impact on real estate development and capital construction is still in its early stages.

However, commercial real estate professionals – developers, investors, contractors, site selectors and service providers – are beginning to harness AI’s potential to enhance decision-making, improve project outcomes and mitigate risk. Those that strategically integrate AI into capital project planning and execution will gain a significant competitive advantage.