The architecture, engineering, and construction (AEC) industry is undergoing a rapid transformation. However, several challenges persist, particularly in the way data flows and is utilized. Based on current observations and industry discussions, we can break down these challenges into key trends, data frictions, and future considerations for a more seamless workflow.

1. Increasing Demand
   Urbanization and population growth continue to push the limits of infrastructure needs. Governments are also investing in infrastructure modernization and building more housing. 
2. Declining Workforce
   A growing concern in the industry is the diminishing pool of skilled labor. Many sectors of the AEC industry are struggling to attract and retain workers, resulting in significant delays and rising costs. As older workers retire, younger generations are not entering the field at the same rate. ‍
3. Underutilized Data
   Despite the vast amounts of data generated during a project—from planning to construction and operation— this knowledge remain untapped and is siloed from future projects. Unfortunately, many companies struggle to effectively leverage the repositories of data they already own to inform future workflows.

At present, data in AEC projects falls into three categories:

• Project Data: Generated by users and AI during the lifecycle of a project, this includes information from past projects that can provide insights for future work.
• Context Data: Site-specific data, environmental conditions, supply chain inputs, and societal impacts, which are crucial for project planning.
• Company Data: Standards, classifications, and content from past projects, often locked away in proprietary systems and finance software.

The challenge lies in integrating these types of data into a cohesive digital thread that all stakeholders can access and use in real time.

Despite advancements in digital tools, there is still significant friction in how data is shared  between various roles in the AEC industry. Key players like architects, engineers, contractors, and owners face bottlenecks throughout the project lifecycle. These frictions can be summarized as follows:

• Architects find it difficult to gather real-time data and constraints to explore viable options during the design phase.
• Engineers struggle with iteration and collaboration without breaking each other’s work, which delays progress.
• General Contractors often find the data they receive untrustworthy, prompting them to redo modeling, further slowing down the construction process.
• Subcontractors are focused on  documents that are often outdated, which limits their ability to make proactive decisions on-site.
• Building Product Manufacturers lack streamlined methods to share their data, forcing others to start from scratch, hindering collaboration across the supply chain.
• Owners and Operators frequently receive unstructured data, making it hard to leverage information for operations and maintenance post-construction.

These pain points lead to inefficient project execution, poor collaboration, and missed opportunities for improvement across the lifecycle of a project.

The future of the AEC industry hinges on addressing these data-related challenges. To reduce friction and fully leverage the potential of data, several key innovations are needed:

• Improved Interoperability: Tools and platforms need to seamlessly communicate with each other, allowing real-time access to up-to-date data across all project stages.
• Automation and AI: As the workforce continues to shrink, automation will need to play a bigger role, from planning and design to on-site construction and long-term operations.
• Better Data Utilization: Leveraging the unused 95.5% of data could unlock immense potential in predictive maintenance, sustainability, and more efficient project delivery.

By embracing these changes and investing in technology, the AEC industry can overcome current challenges and create a more streamlined, data-driven future where projects are delivered on time, on budget, and to the highest standards.