AI is advancing the construction and real estate sectors into the next era

A new report from Bessemer Venture Partners shows that the construction and real estate sector—which together account for nearly a quarter of the US GDP—still rank among the least digitized industries.

The report highlights how multimodal AI (text, image, video, and voice in the same engine) can now solve the coordination and information burden that has weighed down projects for decades.

Why does this matter right now?

• Productivity Gap: While overall US labor productivity has increased by nearly 290% since the 1960s, the construction industry's productivity has shrunk—primarily because information gets stuck in silos and manual processes.

• Text-heavy Workflows: Blueprints, contracts, RFIs, and change orders are fundamentally language. AI-driven semantics make them searchable and queryable in real-time, rather than hidden in folders and email threads.

• Technological Maturity: Generative models for designs, images, and text are starting to interact directly with existing project platforms without forcing new behaviors on the construction site.

3 Opportunities That Stand Out

Bessemer identifies several niches where the value of vertical AI is already measurable. Those most relevant for customer and team interactions are:

1. Knowledge Management – a “question-and-get-answer” interface that consolidates plans, contracts, and field data into a single source of truth.

2. On-site Coordination – voice and image-captured inspections that automatically link to the correct drawing and timestamp.

3. Automated Quotation & Quantification – material and time calculations directly from altered models, allowing estimators to focus on margin optimization instead of manual tallying.

Note that all these workflows are based on the same core principle: AI working with existing tools rather than replacing them. That's where the leverage occurs.

What Does This Mean for Builders or Managers?

• More Time On-Site – When documentation gathers itself effortlessly, the hours spent in construction meetings and showrooms become more valuable.

• Fewer Sources of Error – Context-aware AI flags conflicts before they become costly delays.

• Faster Decisions – From the first sketch to operational building, lead times decrease when data is talkable, not buried.

The report confirms one thing: value is created when language-intensive workflows are automated while keeping the human relationship at the center. Services that have fine-tuned AI engines to regional construction data—and allow technology to work in the background—unlock the industry's efficiency lock.

“The built environment rewards creativity, efficiency, and safety—not endless stacks of paper.” Bessemer Venture Partners

Want to dive deeper?

Read the full report “Roadmap: Built World AI” here.