In 2026, artificial intelligence (AI) is transforming construction projects, influencing schedules, estimates, and safety reporting. As teams adopt AI tools for efficiency during peak construction season, gaps in contract frameworks pose risks. Key areas for contract revision include reliance on AI outputs, data ownership, confidentiality, cybersecurity, record authenticity, and subcontractor use. AI outputs should assist, not replace professional judgment, to avoid disputes over accuracy. Contracts must clarify ownership of project data and address confidentiality concerns linked to AI integration. To ensure defensibility, leading teams should implement operational guardrails, such as defined AI use cases, mandatory human reviews, and cross-departmental alignment. As disputes often hinge on documentation and contractual obligations, effective use of AI must align with project contracts. Proper integration of AI enhances efficiency without compromising accountability, making it crucial for teams to confirm their processes before the demanding construction season begins.
Mitigating Contract Risks in Construction Projects: Navigating AI and Digital Tools Ahead of Peak Season | Seyfarth Shaw LLP
