What Does 2025 Look Like for Construction and Manufacturing? A Lot Smarter, Thanks to AI

Construction and manufacturing face numerous challenges—rising costs, labor shortages, and outdated workflows.

Enter AI: it’s being hailed as the tool that could help businesses tackle these issues. Whether it’s automating workflows or predicting safety risks, AI is the catalyst these industries need.

But here’s the big question: Are these industries really ready to make that leap? Sure, AI offers a ton of possibilities, but the gap between what it can do and what the industry is set up to handle might be wider than we think.

So, how exactly will AI make an impact? What should you be paying attention to in the next few years? And most importantly, how can your organization get ahead of the curve and stay there?

Let’s dive into what AI has in store for construction and manufacturing by 2025.

How AI Will Make Your Workday Smarter and Easier in 2025

AI doesn’t need a hard hat or to punch in at 9 am, but it’s already transforming construction and manufacturing behind the scenes.

By 2025, over 80% of construction leaders will be actively concerned about the loss of institutional knowledge as skilled workers retire. Meanwhile, AI is stepping in to bridge the gap, offering solutions to enhance productivity, improve safety, and tackle labor shortages head-on.

EvanKirstel, an AI expert predicts, “AI will shift from ‘cool to have’ to essential. It’ll blend into workflows and show impact from day one.”

According to Evan, 2025 will mark the tipping point where AI becomes an essential for business. AI tools will blend into your workflow, tracking progress, spotting delays, and offering suggestions—all in real time.

Expect AI tools to become such a natural part of daily operations that you won’t even notice them—but they’ll be making a world of difference.

Picture this: You grab your coffee, open your dashboard, and it’s all there—progress updates, delay predictions, and next steps—all thanks to AI.

A question to keep in mind: What’s one area in your workflow that could use an AI upgrade?

Rise of the Machines: AI Agents and Industry 5.0

Industry 5.0 is bringing AI agents into construction and manufacturing, revolutionizing how work gets done.

And in 2025, it will start becoming a key asset, particularly in construction and manufacturing. These AI agents will assist managers and workers by providing real-time updates, improving safety protocols, and ensuring quality is maintained across the board.

Isaac Sacolick, a thought leader in AI and digital transformation, says, "These agents will ease reporting, improve safety, and ensure quality. It’s like having a crystal ball, but with data, logic, and AI-driven precision.”

AI on the Job Site? It's Happening.

AI is in a great spot to tackle the big challenges construction and manufacturing industries face, offering solutions that fit their needs perfectly.

Let’s explore these challenges and how AI provides the answers:

Construction: Managing Complex Projects and Mitigating Risks

Construction projects are often massive undertakings with tight deadlines, complex workflows, and significant risks. AI is becoming a critical tool for managing these challenges.

• Identifying Risks Early: Aarni Heiskanen highlights how AI-powered systems can aggregate data from various sources (meeting notes, on-site photos, and sensor readings) to detect potential delays or risks. For example, AI can predict weather-related disruptions or spot logistical bottlenecks, enabling managers to take proactive measures.
• Automating Planning Processes: AI simplifies construction management by automating tedious tasks like resource allocation, scheduling, and progress tracking. This reduces human error and makes things run smoother.
• Enhancing Decision-Making: With real-time data analytics, AI gives project managers a clear picture of ongoing operations, so they can make smarter decisions fast.

Manufacturing: Combating Labor Shortages and Optimizing Operations

Labor shortages continue to be another major hurdle in manufacturing, with retiring workers and a shrinking talent pool creating significant gaps.

According to the Quickbase's recent State of Manufacturing research, 90% of manufacturing leaders cite rising production costs as a critical concern, but 57% are already planning to adopt AI to offset these expenses.

Evan Kirstel points out how AI addresses this through automation and upskilling:

• Automation to Fill Gaps: AI-powered robots and systems are stepping in to handle repetitive, labor-intensive tasks, such as assembly, quality checks, and packaging. This ensures that your production remains uninterrupted despite workforce shortages. For example, a manufacturing line equipped with AI can operate 24/7, adapting to production demands without fatigue.
• Upskilling the Workforce: AI-powered training programs, often integrated with augmented reality (AR), help workers learn new skills at their own pace. These programs adapt to individual learning styles, making it easier for employees to transition into more technical roles.
• OptimizingProduction Lines: AI analyzes data from sensors and machines to identify inefficiencies in real time, enabling managers to streamline operations and reduce downtime.

AI-Enhanced Collaboration: Streamlining Operations and Efficiency

Gone are the days of projects getting bogged down by endless meetings, inefficient scheduling, and wasted resources. AI is here to streamline collaboration and improve efficiency, making project planning smoother than ever.

Gary Mintchell adds that AI-embedded applications will enhance operations so subtly that workers won’t even realize they’re using them. Over 57% of leaders in manufacturing plan to consolidate IT systems, paving the way for these streamlined AI solutions.

• Optimized Resources: AI allocates materials, staff, and tracks inventory to prevent downtime.
• Risk Prevention: Predictive tools through early issue detection.
• Seamless Communication: Unified dashboards ensure your teams are aligned, without extra meetings.
• Adaptive Timelines: AI adjusts schedules in real-time to keep your projects on track.
• Quick Decisions: AI turns data into actionable insights for faster decisions.

The Shifting AI Landscape: Small Models, Big Impact

While big AI systems have gotten a lot of attention, experts like David Linthicum believe the future will focus more on smaller, smarter AI tools that can make a real difference.

These “agentic AI” tools don’t just wait for instructions—they actively analyze data, spot potential issues, and suggest solutions on their own. Think of it as having an extra set of hands on your team, always ready to keep things on track, solve problems, and make your day-to-day operations run more smoothly.

As we look toward 2025 and beyond, a significant shift is happening: the industry will move towards smaller, more cost-effective AI models.

What does that mean for you?

Simply put, AI will become more accessible, allowing smaller companies to adopt and benefit from these technologies without having to break the bank.

Instead of relying on expensive, high-power AI systems that require enormous resources, businesses will be able to deploy smaller, more tactical AI systems that can still deliver substantial benefits. These smaller models are cheaper, easier to manage, and, surprisingly, just as effective for many practical applications.

Crafting the Future: AI in Action

The future belongs to businesses that are ready to adapt, innovate, and begin to embrace the possibilities of AI.

At the heart of this transformation are CIOs and forward-thinking leaders who are ready to champion AI adoption. It’s their vision that will turn the theoretical potential of AI into practical results, driving growth, improving efficiency, and empowering the workforce.

Quickbase is already leading the way in making this transition seamless. By integrating AI into our solutions, whether you’re looking to consolidate workflows, manage labor shortages, or improve optimizing project timelines, Quickbase makes sure you have the tools you need to thrive in the age of AI.

For businesses, the time to act is now. Start small—explore scalable AI solutions, train your workforce, and turn today’s innovations into tomorrow’s competitive edge.