In September 2026, the Massachusetts Institute of Technology (MIT) and national building company Suffolk released a joint study on the immediate benefits of AI use in the construction industry.
Combining academic research, case studies, surveys, and interviews with industry experts, the study identifies the six most promising areas where AI can quickly improve operational efficiency and contribute to faster growth.
6 ways AI is transforming construction
1. Design automation
According to the study, using AI to evaluate drawings and blueprints results in a faster design cycle, leading to up to a 21% reduction in design and engineering costs and a 10% potential total project cost savings.
Designers use AI to more quickly iterate, while AI review catches design errors and evaluates costs and constructability.
2. Offsite manufacturing
For businesses that employ modular construction, using AI to optimize factory prefabrication results in up to 14% total cost savings.
AI is most frequently used to evaluate and plan manufacturing logistics or to generate actual component designs, while robotics speed up assembly.
3. Permitting
Automating permit reviews and application leads may reduce project time by 24%.
Because building regulations across the U.S. are diverse and complex, obtaining the correct permits is a common bottleneck for construction projects. AI reduces uncertainty by automating code compliance and document management.
4. Scheduling
AI reduces project timelines by as much as 15-18% with responsive scheduling.
AI scheduling tools can more quickly suggest strategies to both predict and optimize project duration and cost. It also helps project managers visualize budgets and detect scheduling conflicts.
5. Skilled labor and subcontracting
Up to 17% time and up to 13% cost savings can be achieved by reducing the administrative burden of assigning and managing skilled labor.
Managing your workforce is especially important during construction’s ongoing skilled labor shortage. AI helps most by improving forecasts, automatically matching employee skillsets to specific tasks, and structuring contract agreements.
6. Supply chain and procurement
AI is poised to reduce total project time by 15% and reduce total project costs by up to 10%.
Most businesses use AI in supply chain management to quickly research available products that match design specifications as well as to track materials and supplies as they are both manufactured and delivered.
Connected workflows
While the full study covers each most promising use case for AI in detail, the main takeaway of the research is that it will have the greatest impact when used to improve project planning, execution, and management holistically.
“When data, systems and field operations are connected, teams can make better decisions faster and remove a lot of the manual friction that slows projects down,” Suffolk’s Jit Kee Chin, Executive Vice President and Chief Technology Officer explains. “The opportunity now is to move from isolated AI use cases to integrated workflows that create measurable value across design, procurement, scheduling and execution.”
Implementing AI in your construction workflows
Raken uses AI strategically to automate repetitive tasks and allow you to make the most of your data.
Connect field data to your preferred AI tools - Securely connect Raken to all major AI agents including Claude and ChatGPT to gain accurate insights on project management, performance, and more.
Tag jobsite photos automatically - Let AI add relevant keywords related to safety, equipment, and other details to your photos to more easily search and filter your project gallery.
Prevent time theft - Verify clock-ins by employee photo identification to eliminate buddy punching.
Capture better, more accurate reports, time cards, and more, and enhance workflows with strategic AI that securely accesses your data.