Society of Construction Law - AI in Construction: A Legal Perspective

Artificial intelligence is becoming an increasingly common topic across the construction industry as firms explore how new technologies can support their workflows. Alongside the potential benefits, there is also growing discussion around the legal and professional implications of using these tools within construction and professional services.

Recently, Tom Haley and Andrew Shaw attended a Society of Construction Law conference in Leeds where one of the sessions examined the role of artificial intelligence within the construction and legal sectors. The session was delivered by Thomas Crangle and Nick Kaplan of 4 Pump Court and explored how AI tools may begin to influence the work of construction professionals, including quantity surveyors, consultants and legal advisers.

Understanding how generative AI works

A central point of discussion was the way generative AI systems operate. Despite the confident and authoritative tone that AI-generated responses can sometimes present, these systems do not reason in the same way humans do.

Instead, generative AI tools produce responses by identifying patterns within the data they have been trained on and predicting likely outputs. While this process can generate useful summaries or analyses, it does not necessarily mean the system understands the information in the way a professional would.

For professionals working in construction and dispute resolution, this distinction is important. AI-generated responses can appear credible, but the logic or sources behind those responses may not always be transparent. As a result, outputs generated by AI systems should always be carefully reviewed and verified before being relied upon.

Confidentiality and data protection

Confidentiality was another important issue raised during the session. The growing use of publicly available AI tools has introduced potential risks where sensitive project information or commercially confidential documentation is uploaded into open platforms.

This can raise concerns around legal privilege, client confidentiality and data protection obligations. For many organisations, the governance of how AI tools are used internally remains an emerging challenge and one that requires careful consideration.

Legal implications and professional responsibility

As AI tools become more widely used across professional services, there is also the potential for legal disputes to arise from their misuse.

One area likely to be tested is professional negligence. If a professional relies on AI-generated outputs without appropriate verification, and those outputs later prove to be incorrect or misleading, questions may arise regarding whether reasonable professional standards were met.

Ultimately, the responsibility for the work remains with the professional. Whether analysis is produced by AI software or by a junior member of a team, the individual reviewing and issuing the work remains accountable for its accuracy.

Emerging applications in dispute analysis

The session also highlighted emerging use cases in dispute resolution. In the United States, AI tools are increasingly being used to analyse historical arbitration decisions.

By reviewing large volumes of previous rulings, these systems can identify patterns in tribunal behaviour and highlight trends in how certain disputes have been determined. In some cases, this analysis may even assist in predicting potential outcomes in comparable disputes.

In high value construction disputes, insights of this nature could provide a strategic advantage when assessing risk, preparing claims or considering settlement options.

AI as a professional support tool

The overall message from the discussion was that AI should be viewed as a tool to support professional work rather than replace professional judgement.

Used appropriately, these technologies can assist with analysing information, reviewing documents and improving efficiency across certain processes. However, proper oversight and governance remain essential.

For organisations adopting AI, the focus should be on training teams to understand the capabilities and limitations of the technology, controlling access to AI tools, and establishing clear policies around acceptable use and data protection.

With appropriate safeguards in place, AI has the potential to enhance efficiency and insight across the construction industry while maintaining the professional standards that clients and projects rely upon.

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