Artificial Intelligence in the Construction Industry: Drafting Project Agreements to Mitigate AI Risks

Description

Artificial intelligence is significantly impacting the construction industry with technological solutions to improve efficiency in every aspect of project development and project management. AI advancements are already being used to enhance productivity and quality in project design and modeling at a project's initial stages; and to improve worksite efficiency, employee safety, and data management once a project is underway.

Yet, with all the benefits come increased risks of which construction counsel should be aware to best mitigate these risks when drafting project agreements. For example, while building information models (BIM) improve project parties' ability to visualize designs and improve communication and project quality, the roles and responsibilities of the parties can become intertwined as they collectively provide input which may raise liability and risk allocation issues. The use of the software and who owns it may also create intellectual property concerns. However, these risks may be addressed by contract.

Additionally, although AI may help manage projects and increase employee safety through worksite surveillance, data and employee privacy concerns arise with the collection of large amounts of data. Therefore, counsel should be aware of possible federal and state law privacy requirements so that these may be addressed contractually and for ongoing compliance.

Listen as our expert panel discusses recent AI innovations in the construction industry and the risks of which counsel should be aware. The panel will offer best practices for drafting agreements to mitigate these risks and address ongoing compliance issues.