Artificial Intelligence/Chat bots in Construction Industry

Running head: Artificial Intelligence/Chat bots in Construction Industry
Artificial Intelligence/Chat bots in Construction Industry
Name of the Student
Name of the University
Author Note

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Artificial Intelligence/Chat bots in Construction Industry
Executive Summary
In order to complete the analysis of the report the researcher has considered the
construction industry and a detailed background of it has been provided. Marketing mix
has been discussed in the report to have a better idea of the individual perspective that
are related to the development of a proficient context. In the report porters five forces
has been considered for competitive analysis and the 7Ps has been considered as well.
Thee social and ethical issues have been detailed as well for beer understanding of the
situation. Focus has been given on chat bots to have a detailed report on the
importance of such kind of technical products in the construction industry.

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Artificial Intelligence/Chat bots in Construction Industry
Table of Contents
Discussion..........................................................................................................................3
Marketing mix tools and techniques..................................................................................4
Who are the key competitors and which ones will be most important? Apply relevant
theory.................................................................................................................................6
Identify current /potential Macro marketing issues (e.g. social/ethical) that may arise
where AI/Chatbots are used. With recent examples.........................................................8
References.......................................................................................................................10

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Artificial Intelligence/Chat bots in Construction Industry
Discussion
Background of the topic
Chatbots are a piece of software which is used in text messages, chat-bots are a
system of Natural Language Processing (NLP), which is generated by machine learning
algorithms. Chatbots have made communication much easier and it is hard to verify
whether the conversation is going with human being or a computerized robot. In 21st
century majority of the businesses have capitalized using chat- bots, they are being
deployed especially in customer services, and communication processes of businesses.
Businesses are also in client to give the chat-bots processes in the internal
functionalities for learning and training processes. Natural language processing has also
become a mandatory inclusion for understanding the market diamonds and the
customer perception of a particular brand. The usage of chatbots has become
necessary because it has replaced large human call centers, making a considerable
cheaper to strike a conversation customer understand the market demands. Many
customers are also giving positive feedback in case of chatbot deployments in
organization as they have been getting accurate answers to their questions and quicker
services, the last human call Centre can provide. Nevertheless, it can be understood
that chat-bots have replaced thousand call centres, decreasing the investment of time
and cost.
According to forbes.com, (2020), the key concepts in achieving efficient NLP
technology are aggregation and augmentation. By applying this concepts business
organization want to derive insights from every conversation about market condition
trends. Another important factor that must be included while deploying chat-bots is
summarization, summarized answers to questions of the customers, which involve
product and service issues or technical issues, this will help the chat--bots to quickly
response, and process data acquired from the customers, and provide speedy and
quality services to the customers.
Construction sector has not been much active in using advanced technology in their
processes (Dodge and Futcher 2015). Due to lack of technology construction sector is
going through low productivity, as according to construction industry institute value

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Artificial Intelligence/Chat bots in Construction Industry
added activities are just 10% of the over activities under construction sector. On the
other hand, manufacturing industry is much more productive by using advanced
technology. Thus, manufacturing industry being the main competitor for the construction
industry, technology usage is much more less in the construction industry. The
necessity of involving chatbots in the construction industry is that it will help in acquiring
accurate information about machinery and team functionalities, sharing photos and
updates about the construction site, analysis about work progress, urgent requirements
navigation to the site engineers. The inclusion of chatbot in the construction industry
make the processes much more fecund and less time consuming. According to
forbes.com(2020), 95% of consumers given feedback the customer service will be much
more developed by the utilization of chat-bots. Therefore, this report will exemplify the
efficacy in utilizing chat-bots in construction industry, and the development it will acquire
by implementing NLP through chat-bots.
Marketing mix tools and techniques
Construction industry must provide chatbots to their customers or deploy them to
have the site engineers access their work progress and various other functionalities to
speed up their work. In implementing chatbots, a marketing mix should be done to
analyses various facets that involve in successful technological implementation. The
marketing mix that will be applied in case of the contraction industry is the detailed 7p's.
The 7p's represents the product, price, promotion, place, packaging, positioning and
people.
Product - in case of a construction industry, contractor will provide the chatbots in
bringing more interaction among the engineers, with the labors working in the site. The
chatbot will provide accurate information about managing project schedules, designing,
necessary equipment’s or machinery, to the workers on site. The chat bot will also
provide necessary services by spreading awareness among workers in case of security
and safety. The inclusion of chatbot therefore will be beneficial for decreasing accidents,
and increasing collaborative working.
Price- prices should be based on the competition in the sector; including chatbots will
decrease many unwanted investments in the construction industry. As chatbots will help

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Artificial Intelligence/Chat bots in Construction Industry
in connecting the multiple workers in different portion of the sites. As well as the chatbot
will help in asking recommendations to engineer which can be beneficial in the
construction site. Chatbot prices are generally ranging from $25000 to $30000, which
can be easily affordable, and this should be included according to the developmental
processes, as well as integration processes (Smestad and Volden 2018). The pricing
strategy that must be applied by the construction industry is market oriented pricing
strategy, as it will help in keeping at par with their competitors. Nevertheless, involving a
good chatbot will decrease much inventory cost, or transportation cost because it will
help in easy communication.
Promotion- the promotion can be done by sending messages to the employees
personally, this type of techniques are generally referred as marketing communication
tactics. Therefore, the promotional strategy should be by virtual communication to
create communicative environment in the construction sites.
Place - in this factor, the place for the implementation of the product will be analyzed.
The Deploying of the chatbots will be done in the construction sites, by using multiple
sensors, which will be connected in the various parts of the construction site. Chatbot
with answer various type of questions related to the construction facilities, like project
scheduling the design list of equipment’s and machineries, safety procedures etc. This
will be quite beneficial to the workers working, as there will be easy connectivity with
engineers.
Packaging: the packaging of the product is necessary to understand the quality of the
product. Chatbot should be of good quality and should be deployed successfully by the
help of software engineers so that there is no inconvenience created while
communication.
Positioning: the positioning is the concept of the consumer perception about the brand.
In case of construction industry deploying chatbot, the perception of the workers is
necessary. Checking of the chatbots should be made a mandatory function in a
construction site, which can be done by taking feedbacks from engineer and laborers.
People- this is the essential element of marketing mix as, it include everyone who is
involved in the product development or service. The involvement of the employees and
their satisfaction is the most important thing in case of deploying the chat- bots.

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Artificial Intelligence/Chat bots in Construction Industry
Who are the key competitors and which ones will be most important?
Apply relevant theory.
It has been estimated that by 2035, inclusion of artificial intelligence increase the
productivity by 40% in many of the organizations (Bollweg et al 2018). Artificial
intelligence have capability to boost up economic growth and according to the
estimation. By the year 2035, deploying chat bots will give an economic post of 1.7% in
in approximately 17 industries.
Moreover, in case of industrial or manufacturing industries, implementation of
artificial intelligence is comparatively less then information and communication
manufacturing and financial in industries. By the year 2035, information and
communication manufacturing and financial services will be the top three industries,
which will acquire economic development. On the other hand, in case of construction
industries 85% of the companies have been reported to use artificial intelligence by the
year 2016, and the end of 2020, still 18% of the company have not used technological
implementation. The work processes in construction industries have piled up and
becoming more complex, is compulsory to include technological innovation on a serious
note.
Engineers have been struggling with collecting suit sets of data, which can be
implemented in the construction site. Therefore, it involves 20 to 30 per cent of
engineers time in repetitive tasks, answering one questions many times and checking
activities more than once (Følstad Nordheim and Bjørkli 2018).
In analyzing the competitors of the construction industry, Porter’s five forces will be
implemented. This concept helps in understanding the competition of the market and
the way a company will sustain by acquiring the goals and objectives. main strategic
analyst have used photos five forces to understand the importance of new products or
services in gaining profit as well compel good performances by employees.
The five forces that will be applied in construction industry are as follows:
Supplier power: the porters five forces the supplier power is quite strong, as the
company has opted for the market pricing strategy. The phone in this case the supplier
power is high as what is the necessity of the construction industry to quick involvement

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Artificial Intelligence/Chat bots in Construction Industry
some technological innovation for reducing their time and inventories so that they
can improve their performance. Therefore, the prices presented by the suppliers will he
high and construction industry have to opt for it.
Buyer power: Buyer’s power is analyzed but the capacity of the buyer to drive the
prices down for the products offered by the suppliers. The power also depends on the
number of buyers in the market, and the chances of the buyer in shifting to another
supplier. In this case, the buyer power is strong. Moreover, the other construction
companies that will be opting for chat-bots to increase productivity will also be an
considerable threat to the construction industry.
Competitive rivalry: the main competitors of the construction industry will be the
manufacturing industry as well as Information and Technology Industry. Moreover, as
stated by Accenture research and frontier economics, that education, accommodation,
food services and construction industry will the most benefited by involving artificial
intelligence by the year 2035. However, according to one report I will give potential
economic growth to industries involved with information and communication up to 4.8
percentage, manufacturing to 4.4 percentage and financial services by 4.3 percentage,
which will act as a strong competitor to the contraction industry as they have not used
artificial intelligence from the beginning. Therefore, competitive rivalry is high.
Threat of substitution: in case of substitute of threats, threats can be related to
products or services that is provided better by any other company. Many companies are
providing better services and facilities to their employees for improving the production.
In that case, of that threat of substitution is medium for the construction industry.
Threat of new entry: main profitable markets accept new companies which targets for
profitability and competitive edge. Only strong companies, which have establishment for
years, can sustain by threaten of new entrants. In case of construction industry a new
entrant will have to take time in acquiring customers and market size, therefore the
threat of new entrant is low in case of construction industry.
The implementation of five forces helps a company in understanding the elements that
are necessary to acquire profitability and competitive advantage. In case of construction
industry, the industry have taken initiative to deploy chat bots in their processes, so that
the workers can communicate efficiently and increases their productivity.

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Artificial Intelligence/Chat bots in Construction Industry
According to a study, 40 per cent of large businesses have implemented NLP
processes by deploying chatbots. This has increased efficacy in customer services by
14 percent and help in data analytic work by 10 percent.
The usefulness of chatbots are that it helps in better collaborative team work, it checks
conversation, turns voice into messages to present it as information. For example, Slack
developed by Slack technologies is an example of an NLP which acts a chatbot and
provides a instant messaging platform.
Identify current /potential Macro marketing issues (e.g. social/ethical) that may
arise where AI/Chatbots are used. With recent examples
There are different types of issues that might have to face in the construction industry.
The reasons why the issues are there are related to the technicalities that are often
overlooked by the people. It is a major factor to be considered in order to make a
justified assessment of the current scenario. In this context, the social and the ethical
issues are going to be analyzed as well in order to have a better grip of the situation.
Social issues that might arise
Issues associated with the process are related to the cultural aspects that are often
overlooked in the construction industry. The most of the times it is seen that the chat
bots understand one dialect of English language and in some of the cases it is seen that
consider to have a single language as their understandable system. This is considered
biasness to the labors who are coming to work from different parts of the world with low
amount of language information. The chat-bots often are not comprehendible for the
people who are in the labor line up. This is a major factor to be considered in order to
make justified assessment of the scenario (ARAIN et al 2018). The language barrier is a
major factor to consider and in terms of communication, it is considered a major factor
to play a negative role if kept unattended. For an example the according to an site
usabilla, 46% of internet users in United States, think that online support from a living
person is way more effective than deploying an chat bot, it also determines that chat bot
are generally summarized information, and are not capable in understanding situations,
and analyze according to that. There can be accidents in the construction site, in which

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Artificial Intelligence/Chat bots in Construction Industry
the chat bot will be unable to provide helps, and the absence of a site engineer will
magnify the situation.
In case of ethical issues in the construction industry, the lack of live person is
necessary. The system of chat bot will provide the freedom to cite engineers to wok
inefficiently, as they will get dependent on the chat bot. This proves that chat-bot
installation can have its disadvantages, and rather decrease productivity. In the year
2018, 47.5 percent of people have stated that chat-bots provide unrealistic suggestions
and give much bad suggestions. It has also been recorded by 24.2% people that chat-
bots tale a lot of time in responding (chatbotsmagazine.com, 2020). Other problems
have been recorded by 50 percent of business personnel’s operating manufacturing
industries as well as information and technology industry that they did not implement
chat-bots because of less using options, and rest of 29% percent of business peoples
have less preference for chat- bots due to security issues. Due to its high costs, many
have not preferred in implementing chatbots. Therefore, the construction sites in many
countries have stated that chat-bot can distract employees and decrease the user
productivity. Another major ethical issue that has happened by using chat-bot is that it
does not recognize the actual owner’s voice. This can be a major problem in times of
busy schedules and prevent in providing solution in times of crises.

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Artificial Intelligence/Chat bots in Construction Industry
References
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Chatbots Design Techniques. International Journal of Computer Applications, 181(8),
pp.7-10.
ARAIN, A.A., Manzoor, A., Brohi, K., Haseeb, K., Halepoto, I.A. and Korejo, I.A., 2018.
Artificial intelligence mark-up language based written and spoken academic chatbots
using natural language processing. Sindh University Research Journal-SURJ (Science
Series), 50(01), pp.153-158.
Barakat, K.A. and Dabbous, A., UNDERSTANDING THE FACTORS THAT AFFECT
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Artificial Intelligence/Chat bots in Construction Industry
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forbes.com, 2020. How Artificial Intelligence Is Making Chatbots Better For Businesses.
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