The relationship of leadership and artificial intelligence in construction and development industry : a mixed methods research

Abstract

Modern residential construction and development industry has remained relatively unchanged for decades - industry is well-known for its reluctance to transform. Throughout the past five years or so, artificial intelligence has once again become a talking point and cause of hype, resulting in widespread adoption across industries. However, construction and development linger in the follower’s position while other industries have gained a strong head start. Author wishes to shed light on the current role of leadership and AI amongst mid-sized construction and development businesses; what is their current level of adoption with AI, how widespread is its use within a business, how successful is the adoption and what are differentiating factors between successful and failing relationship? While management is a well-researched topic, its relationship with artificial intelligence has received relatively modest amount of attention, espe-cially among MSE’s in the field of construction and development. Early stages of AI adoption and the general novelty of available AI information is to blame. This research is a multilevel examination, focusing on a mixed methods approach. Quantitative parts comprise of a global survey intended for 1215 executives of the said industry – only one upper management mem-ber per company was allowed to partake. Only companies from 50 mill to 1 bill USD annual revenues had the eligibility to participate. Following the survey comes the qualitative section where select few of these leaders were personally interviewed, to gain a deeper outlook of the global situation. Final level, and part of the qualitative research analysis, were the review inter-views with AI and construction experts from several recognized institutions. This levelled, mixed methods approach was used for gaining the maximal cohesive understanding of the status quo. The main purpose of the research was gaining intimate knowledge of the path and best practises companies using cognitive technologies, resorted to. As a result, author pre-sented conclusions based on theoretical and practical observations and findings emphasizing recommendations for companies planning to implement the use of AI, or for those failing to see financial benefits and value in their operations implementing AI. This research should offer the reader valuable insights on the named themes and respond to questions companies face in the early or mature stages of AI adoption. The coverage of this research is 54 survey replies from at least 20 countries with a combined revenue bracket from 14.9 bill to 24.6 bill USD of these respective businesses. This translates to approximately 0,33-0,56% of the global resi-dential construction market. All respondents were part of the upper management teams of their own businesses or were representing them (CEO’s, Owners, Managing Officers, Board Members, and other upper management teams members).