An Industry Lens on Forecasts from the AI Futures Project
By: Omar Smith and Eric Lamb
The construction industry stands on the brink of significant transformation in the coming years, driven by rapid advancements in artificial intelligence (AI). This article draws on forecasts from the AI 2027 report, published by the non-profit organization AI Futures Project, and adopts its technology roadmap as a working premise. The project is led by former OpenAI governance researcher Daniel Kokotajlo, who notably accurately predicted several LLM milestones in a previous research report. This new report is built on quantitative modeling from experts and explores detailed scenarios for what could happen if AI systems surpass human-level intelligence by 2027.
This paper is a thought experiment on how the AEC industry could be impacted in the next 3 years given the aggressive “race” scenario predicted in the AI 2027 Report. Several takeaways can be imagined based on this rapid adoption of AI into our industry.
Drawing from the report’s roadmap, we envision this progression: 2025 brings early copilots for structured tasks; 2026 unlocks specialized models through rapid iteration and tuning; and by 2027, general-purpose AI systems are actively delivering designs, making strategic decisions, and managing robotic execution on job sites.
*Inferred from AI 2027 Report
While the full report explores a wide range of geopolitical, security, and societal implications, our focus is specifically on the predicted advancements in AI capabilities. We expect these advancements will lead to a multitude of changes in industry practices. This paper aims to summarize the likely impacts of AI on construction over the next three years, with specific forecasts for 2025, 2026, and 2027.
Diagram excerpt from AI 2027 report
This year marks the emergence of agents that can take multi-step actions, but are often unreliable in execution. This offers glimpses of automation, though reliability often falls short. The models predicted for 2025 are bounded by systems that operate in language and code environments and require hard-coded rules that prevent hallucinations, errors, or faulty reasoning. While some models can process images, they do not yet interpret visual or spatial information reliably on their own. Their usefulness in visual tasks depends heavily on external scaffolding, including translation of images into structured text, vision model pipelines, rule-based logic to constrain outputs, and human oversight to catch failures. As a result, the agents of 2025 are limited and function more as co-pilots than fully autonomous systems.
The construction industry will begin to see the early integration of these AI Agents “stumbling” into its processes and workflows. We expect agents will struggle to reliably execute processes end-to-end, showing the most utility as co-pilots for structured, text-based tasks such as proposal reviews or contract generation. These applications rely on structured documents or templated workflows where LLMs can summarize, retrieve, and generate information within constrained domains. Given that there is work to be done to provide models with sufficient, clean training data and fine-tuning tooling is still nascent, we believe that complex workflows that require multi-step reasoning will begin to emerge but remain largely undependable. Key impacts include:
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Diagram excerpt from AI 2027 report
AI capabilities in 2026 expand meaningfully, not due to breakthroughs in autonomy, but because of accelerated development cycles, broader access to model weights, and improved data infrastructure. Algorithmic innovation boosts development velocity by ~50%, while better tooling and increasing availability of clean, structured enterprise data allow more companies to experiment. Most importantly, developers can now fine-tune models using smaller, high-quality datasets—reducing the historic reliance on massive labeled corpora of data and enabling the creation of domain-specific AI applications. As a result, more reliable, specialized copilots emerge across industries. Though still limited in complex, long-horizon reasoning, these agents are increasingly embedded into real workflows and optimized for practical use cases. The year is defined not by general intelligence, but by increasingly useful specialization.
In 2026, construction AI systems move beyond early-stage co-pilots to become more embedded in decision-making workflows. Rather than simply finding info in project documents, surfacing errors or missing inputs, agents can now evaluate options across variables—proposing schedule adjustments, flagging design risks based on downstream impacts, or recommending supply chain changes. This represents a step-change from 2025, when outputs were typically static or isolated. As domain-specific tuning improves, agents begin to exhibit layered reasoning and context awareness, supporting teams in tasks that previously required experienced human judgment. The industry will experience:
Diagram excerpt from AI 2027 report
The report presents a pivotal decision for readers in 2027: one in which humanity either accelerates or slows AI development in response to growing capabilities and strategic risks. For our purposes, we chose the “race” scenario, in which governments and institutions double down on advancement rather than impose restrictions. Under this trajectory, AI systems transition from narrow copilots into artificial general-intelligence AGI systems, capable of autonomously driving research, design, and operational decision-making. Models run at up to 100X human cognitive speed and are deployed at massive scale, accelerating innovation through self-directed experimentation at a rate 1,000X faster than human teams.
These systems achieve superhuman performance in cognitive domains such as forecasting, strategy, and explanation. In turn, their ability to plan and control physical systems, including robots and equipment, improves dramatically, enabling more reliable multi-step execution in real-world environments. Interfaces also become deeply immersive, allowing for real-time, intuitive collaboration. By year-end, AI is no longer a passive tool but a trusted and indispensable actor across both digital and physical domains.
In construction, 2027 marks the point where AI systems can take on both strategic decision-making and adaptable on-site automation. In the office, AI tools are now capable of managing complex planning, coordination, and decision workflows with superhuman foresight. In the field, AI-powered robotics progressed beyond narrowly scoped, single-task machines to systems that can perform multiple construction tasks in dynamic environments. This unlocks workforce automation across both physical and digital layers of the industry, drastically reducing labor requirements while improving speed and precision. The year 2027 will likely bring:
Conclusion
Over the next three years, AI would begin to transform nearly every facet of the construction industry, based on this “race” scenario. From agentic project management tools and design copilots in 2025, to automated planning and proactive safety systems in 2026, and ultimately to integrated robotics and AI-driven decision-making in 2027, the pace of change will be both rapid and unavoidable.
AEC Recommendations to consider
As stated in the outset, this paper took a more aggressive scenario, but the timeline will likely evolve. However, this transition is not optional. For designers, contractors, and the broader construction workforce, the imperative is clear: start engaging with these tools now or risk being left behind. Waiting to see how AI reshapes the industry is no longer a viable strategy. Those who fail to adopt early may find their roles and relevance fundamentally altered. For startup founders and innovators, the moment is equally urgent. Now is the time to build the foundational AI systems that will power the next era of construction, where value will shift to those who can orchestrate both machines and people in entirely new ways.