Technology

Artificial intelligence accelerates transformation of the built environment

Wednesday, 5 November 2025 5:07AM UTC

Emerging multimodal AI and large language models are poised to revolutionise design, construction, and property management, promising increased efficiency, safety, and transparency in the built environment by 2030.

The built environment, encompassing every skyline, neighbourhood, and building, represents one of humanity’s greatest collective achievements, underpinned by extraordinary coordination of people, materials, and capital. In the United States, the construction and real estate sectors together constitute nearly a quarter of the national GDP, with construction alone valued at $1.3 trillion. Yet despite their economic scale and physical footprint, these sectors remain among the least digitized, having benefited only selectively from recent technological advances.

A critical bottleneck for construction and real estate lies in their inherently language-intensive and multi-stakeholder nature. Success demands seamless coordination across complex workflows, involving text, images, video, and numerous stakeholders ranging from architects and engineers to brokers and tenants. Traditional tools and software, while foundational, have largely failed to address the nuanced challenges of multi-modal communication, real-time collaboration, and decision-making on-site and in the office.

Multimodal artificial intelligence (AI) and large language models (LLMs) are now poised to drive a transformative leap in how the built world is designed, constructed, managed, and experienced. By 2030, AI-powered workflows could reshape daily operations: architects generating full building models from sketches, estimators conducting automated, precise takeoffs from evolving plans, on-site teams capturing safety reports through voice and images, and homebuyers navigating intuitive search platforms tailored to their needs. The promise is a built environment characterised by enhanced creativity, operational efficiency, transparency, and safety—far beyond the labourious, paper-heavy systems of the past.

The construction sector, in particular, faces a significant productivity challenge. Unlike the broader US economy, where labour productivity has surged by nearly 300% over the past six decades, construction productivity has declined annually since 1970. This productivity gap—amid persistent labour shortages, rising material costs, and supply chain disruptions—hampers growth and efficiency in a sector employing over seven million people. Current technology spend in construction is notably low, with firms allocating only about 2.7% of revenue to tech, far behind industries like finance and manufacturing.

Construction AI is thus emerging at a critical inflection point, centred on addressing coordination friction and enabling new forms of human-machine collaboration. Innovations are rapidly advancing across five core construction workflows: design generation, takeoff and estimation, on-site communication and coordination, knowledge management, and construction robotics. For example, startups like Higharc and Finch are pushing the boundaries of generative design, enabling architects to create cost-optimized, code-compliant layouts faster and more flexibly than traditional CAD tools allow. In estimation, companies such as Bild AI and Drawer AI automate the once-manual process of quantity takeoffs, helping estimators shift focus from tedious measurement toward pricing strategy.

On the ground, multimodal AI solutions combining voice, image, video, and text recognition aim to revolutionise communication and safety monitoring. Future platforms could allow construction crews to dictate and document site reports in multiple languages instantaneously, linking observations directly to plans and schedules, thereby reducing delays and errors. Knowledge management tools like Trunk Tools are integrating disparate project data—contracts, RFIs, change orders—into unified, searchable repositories facilitating faster resolution of conflicts and decision-making. Meanwhile, robotic automation is set to rise with companies such as Terrafirma retrofitting equipment to operate autonomously or semi-autonomously, controlled through natural language interfaces.

The real estate sector, which picks up after construction to manage leasing, sales, and property operations, similarly stands on the cusp of an AI-driven transformation. Real estate is a profoundly trust-based, relationship-driven industry, yet it remains burdened by fractured data systems, manual tasks, and slow transaction cycles. Emerging AI capabilities hold promise to automate repetitive administrative workflows for brokers and agents, such as lead nurturing, scheduling, and compliance management. Cutter-edge platforms are reimagining property search experiences with natural language queries and personalised recommendations, enabling faster and more informed decisions for buyers and renters.

On the property management front, AI startups like EliseAI and SurfaceAI are building layers of automation that integrate with legacy systems to streamline leasing, maintenance, and tenant communications. Additionally, generative AI is revitalising property marketing and design, with tools like Spacely AI and Renovate AI producing high-quality, personalised visualisations on demand—redefining how spaces are staged, marketed, and experienced.

Investment interest is growing steadily in this space, recognising the vast untapped potential. For instance, Israeli startup Buildots recently secured $15 million in funding led by Intel Capital, aiming to cut construction costs and delays by up to 50% using AI-powered progress tracking and analytics. Meanwhile, established players like Procore have incorporated generative AI tools (e.g., Procore Copilot) into their construction management platforms, automating document summarisation and routine tasks to enhance workflow efficiency.

European regulation is also aligning with these technological shifts. The EU Data Act and AI Act, effective from early 2025, are set to facilitate data access and set standards for trustworthy AI use, fostering innovation across construction while addressing workforce retraining to handle digital tools effectively.

Venture capital firms focused on real estate technology, such as Fifth Wall, further attest to the accelerated digitisation of the built environment, backing companies that are driving novel proptech and constructiontech solutions. These ventures are pushing forward the creation of a digital 'fifth wall' of technology, complementing the physical infrastructure.

The convergence of multimodal AI, vast domain-specific data, and enhanced human-machine collaboration in both construction and real estate represents an inflection point rivalling the introduction of CAD or SaaS decades ago. For founders and companies entering this space, success will hinge on delivering clear economic impact, solving cross-stakeholder coordination challenges, leveraging proprietary data, integrating seamlessly into existing workflows, and building with deep empathy for end users.

In sum, AI is set to redefine how humanity designs, builds, buys, rents, and manages the spaces that surround us, creating a built world that honours creativity, efficiency, safety, and transparency—ushering in a new era for one of the most foundational sectors of the global economy.

📌 Reference Map:

^[1] (Bessemer Venture Partners) - Paragraphs 1-11, 13-18, 20-22
^[2] (Reuters) - Paragraph 12
^[3] (Wikipedia - Procore) - Paragraph 12
^[5] (Wikipedia - Fifth Wall) - Paragraph 14
^[6] (EU Build-up) - Paragraph 13

Source: Noah Wire Services

More on this

https://www.bvp.com/atlas/roadmap-built-world-ai - Please view link - unable to able to access data
https://www.reuters.com/technology/artificial-intelligence/intel-leads-investment-israeli-ai-construction-tech-startup-buildots-2024-07-11/ - In July 2024, Israeli startup Buildots secured a $15 million investment led by Intel Capital. Buildots employs AI technology to enhance construction efficiency, aiming to reduce costs and delays by up to 50%. The company integrates AI-powered progress tracking and advanced analytics into the construction industry, which has yet to fully benefit from digital advancements. Intel Capital's investment director, Lisa Cohen, highlighted the potential of AI to revolutionize construction process management and drive new efficiencies, aligning with Intel's involvement in large-scale construction projects.
https://en.wikipedia.org/wiki/Procore - Procore Technologies, founded in 2002, is an American construction management software company headquartered in Carpinteria, California. The company offers a platform that connects stakeholders in the construction industry, facilitating simplified workflows and providing a consolidated view of construction projects, including task tracking, project workflow management, and scheduling. Procore has integrated AI into its platform through tools like Procore Copilot, a generative AI tool that retrieves and summarizes project documents, and Procore Agents, which automate tasks such as managing RFIs, scheduling, and submittals, reducing manual data entry.
https://en.wikipedia.org/wiki/ZestyAI - ZestyAI, founded in 2017, is a San Francisco-based technology company specializing in AI-powered property risk analytics for the insurance industry. The company utilizes machine learning to analyze aerial imagery, building data, and climate information to assess catastrophe risk at the individual property level. ZestyAI's platform identifies specific risk factors like roof quality, yard debris, and driveway condition to predict a property's susceptibility to damage. As of 2025, its risk models have received regulatory approval in over 35 U.S. states, allowing insurers to incorporate them into underwriting and pricing decisions.
https://en.wikipedia.org/wiki/Fifth_Wall_%28firm%29 - Fifth Wall, founded in 2016, is a venture capital firm specializing in real estate technology, often referred to as 'PropTech'. The firm manages the largest fund dedicated to real estate technology investments, aiming to provide a 'fifth wall' of technology in addition to the four physical walls of a building. Fifth Wall's portfolio includes companies that offer innovative solutions for the real estate industry, addressing various aspects such as property management, construction, and real estate transactions, thereby driving digital transformation within the sector.
https://build-up.ec.europa.eu/en/resources-and-tools/articles/digitalisation-and-AI-reshaping-competitiveness-construction-sector - The article discusses how digitalisation and artificial intelligence (AI) are reshaping competitiveness in Europe's construction sector. It highlights the EU Data Act, which facilitates access to industry data for businesses across Europe, expected to drive innovation through improved data-driven decision-making. The piece also mentions the EU AI Act, in force since February 2025, applying across sectors using advanced technologies such as predictive analytics and automation tools, including during project execution in construction. The article emphasizes the importance of redefining workforce skills to effectively understand and use digital tools in the construction industry.
https://www.bvp.com/atlas/roadmap-built-world-ai - Bessemer Venture Partners' 'Roadmap: Built World AI' explores the transformative potential of artificial intelligence in the construction and real estate sectors. The article highlights that these industries represent nearly a quarter of the U.S. GDP but remain among the least digitized. It discusses how multimodal AI technologies are poised to fundamentally change how we design, build, and operate the built world. The roadmap outlines key areas of opportunity in Construction AI, such as design generation, takeoff and estimation, on-site coordination, knowledge management, and construction robotics, as well as in Real Estate AI, including broker and agent automation, property search and discovery, property management, and design and visualization.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 10

Notes: The narrative is from Bessemer Venture Partners' 'Roadmap: Built World AI' published on November 4, 2025. This is the earliest known publication date for this content. The report is original and not recycled from other sources. As a press release, it warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The content is current and relevant. No earlier versions show different information. The inclusion of updated data without recycling older material justifies a higher freshness score.

Quotes check

Score: 10

Notes: No direct quotes were identified in the narrative. The content is original, with no evidence of reused or varying quotes. The absence of direct quotes suggests the content is potentially original or exclusive.

Source reliability

Score: 10

Notes: The narrative originates from Bessemer Venture Partners, a reputable venture capital firm with a long history of investments in technology sectors. This enhances the credibility of the report. No unverifiable entities or fabricated information were identified.

Plausability check

Score: 10

Notes: The claims made in the narrative are plausible and align with current industry trends in AI and construction. The language and tone are consistent with professional industry reports. No inconsistencies or suspicious elements were found. The content is well-structured and relevant to the topic.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative is original, current, and originates from a reputable source. No issues with freshness, quotes, source reliability, or plausibility were identified. The content is consistent with industry standards and provides valuable insights into the role of AI in the built environment.

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