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Many people in the building industry have a major concern about the use of artificial intelligence - the replacement of humans in important jobs.

But for Francesco Iorio, co-founder and CEO of Augmenta, a leading AI platform for the built environment, it's just the opposite. "AI isn't here to replace humans; it's here to help us do more with less," he says.

lorio believes AI has the potential to infuse practical efficiency, project cost savings, and home buyer affordability into the industry. He shares his thoughts below.

How do you think AI is viewed in the built/construction industry?

There is much optimism about incorporating AI and its benefits. The industry is massive and complex and is aware of the need to keep up with the growing demand for new buildings and construction. Finding ways to build more quickly, efficiently, safely, and ecologically is critical. AI presents an opportunity to advance the industry much faster than we’ve seen in recent history.

At the same time, the industry is very practical; there isn’t room for experimentation on live projects, and the costs of mistakes are extremely high, so any solution, whether it be AI or otherwise, is looked at through the lens of “What have you done that can be verified?” Meaning is the solution a real, practical, tested, and validated solution.

What are some unconventional ways AI could be utilized in residential construction?

Think about how homes are built today: architects create designs, different specialists plan their systems (plumbing, electrical, HVAC), and contractors have to somehow make it all work together on site. This fragmented process leads to constant redesigns, delays, and increased costs. AI can fundamentally reshape this by acting as an intelligent coordinator that understands all the requirements and constraints simultaneously.

For example, a generative AI system could take basic inputs about a home's requirements and site conditions and automatically generate complete sets of construction drawings. But it goes further, imagine home buyers using an AI-powered configurator that lets them customize their future home in real-time, seeing instant 3D visualizations while the system ensures all choices meet building codes and stay within budget. The AI could automatically generate detailed material takeoffs and cost estimates as changes are made.

This same AI system could optimize the layout of all building systems simultaneously, eliminating the traditional back-and-forth coordination between trades. It could break down custom designs into standardized components that can be manufactured off-site, while maintaining design flexibility. The system could even generate optimized assembly sequences and identify potential safety risks before construction begins.

The implications for housing affordability are significant. By reducing design time, eliminating rework, optimizing material usage, and enabling more prefabrication, construction costs could drop substantially. This AI-driven approach also helps address the industry's labor shortage by increasing productivity and reducing required on-site work. Construction quality improves through standardization and optimization, while project timelines compress dramatically.

The real innovation here is moving from today's fragmented process to one where AI serves as a central coordinator that can understand and optimize all aspects of home building simultaneously. This could help make quality housing more accessible while improving construction efficiency and sustainability. Rather than just automating existing processes, AI has the potential to fundamentally reimagine how we approach residential construction.

Are there any common misconceptions you see surrounding AI in the built environment?

One of the biggest misconceptions is that it will take jobs from construction professionals. This fear is understandable, but it's misplaced. The truth is that the construction industry is facing a severe labor shortage. We simply can't find enough skilled workers to meet the growing demand. Therefore, AI isn't here to replace humans; it's here to help us do more with less.

Think of it this way: AI can take over the tedious, repetitive tasks that often bog down skilled professionals and save their time for higher-value strategy and creativity. The key is to see AI as a powerful ally, not a threat. Another misconception is that AI is only for the big players with deep pockets. However, AI is becoming increasingly accessible to companies of all sizes. Platforms like Augmenta are designed to be user-friendly and affordable, putting AI's power into everyone's hands, from small contractors to large construction firms.

How could AI better benefit large-scale residential builders? s

By operating at scale, builders can leverage AI to create standardized but customizable design libraries that dramatically streamline the development process while still offering home buyers personalization options.

The AI-powered workflow particularly shines in large developments, where it can optimize the layout and construction sequencing of multiple homes simultaneously. For instance, the system could coordinate material deliveries and crew schedules across an entire subdivision, maximizing efficiency while minimizing on-site storage needs and traffic disruption. The traditional 30% material waste rate could be slashed through AI-driven procurement that accounts for bulk purchasing opportunities and cross-project material sharing.

These builders can also benefit from AI's ability to learn from each project. As more homes are built, the system continuously refines its understanding of construction timelines, material usage patterns, and common challenges. This feedback loop enables increasingly accurate predictions for future projects, from cost estimates to construction schedules.

For sustainability, AI can optimize each home's design based on its specific orientation and local climate conditions while maintaining the efficiency benefits of standardized components. This enables builders to deliver energy-efficient homes at scale without sacrificing construction speed or affordability. The result is a more predictable, profitable, and sustainable approach to large-scale residential development.

How are you seeing builders and construction companies using AI to build their businesses?

I’ve seen firsthand how builders and construction companies leverage AI to enhance their businesses. Through our partnership with ENG, a global leader in Building Information Modeling (BIM), electrical contractors are using our platform to automate the design of conduit systems, resulting in significant time and cost savings.

For example, C&R Electric, LLC and KTS Engineering Group used Augmenta’s AI to design and coordinate over 11,000 feet of conduit for Mount Hope Elementary School in Michigan. This project demonstrates how AI creates sustainable and efficient designs for essential public buildings.

We're also seeing construction companies use AI to improve project planning, enhance safety on construction sites, and even gain a competitive edge by offering more sustainable and innovative building solutions.