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Adoption of Artificial Intelligence Technologies in the Philippine Construction

Industry: A Review of Literature

Article · January 2024

DOI: 10.69569/jip.2024.0304

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 ISSN Print: 2984-8288, ISSN Online: 2984-8385
Vol. 2, No. 8, pp. 461-471, August 2024

Adoption of Artificial Intelligence Technologies in the

Philippine Construction Industry: A Review of Literature
John Vincent L. Santos1*, Joefil C. Jocson2
1HolyCross College, Sta. Rosa, N.E., Inc., Nueva Ecija, Philippines
2Nueva Ecija University of Science and Technology, Nueva Ecija, Philippines

*Corresponding Author Email: [email protected]

Dated received: June 23, 2024 Originality: 88%

Date revised: July 5, 2024 Grammarly Score: 99%
Date accepted: June 11, 2024 Similarity: 12%

Recommended citation:
Santos, J.V., Jocson, J. (2024). Adoption of artificial intelligence technologies in the Philippine construction
industry: a review of literature. Journal of Interdisciplinary Perspectives, 2(8), 461-471.
https://doi.org/10.69569/jip.2024.0304

Abstract. This review explores the adoption of Artificial Intelligence (AI) technologies in the Philippine
construction industry, focusing on the extent and scope of adoption, influencing factors, readiness, and
associated benefits and challenges. Utilizing the Technology-Organization-Environment (TOE)
framework, Technology Readiness Index (TRI), and diffusion of innovation theory, the study
synthesizes findings from 20 articles published between 2014 and 2024. Findings reveal a promising
yet varied landscape of AI integration, driven by the need for improved cost management, enhanced
decision-making, and higher quality standards. Successful AI adoption involves digital readiness,
robust data management, and stakeholder engagement. Benefits include enhanced productivity, cost-
efficiency, decision-making capabilities, sustainability, and safety. However, significant challenges
such as data quality, technological complexity, ethical concerns, and the need for a skilled workforce
remain. Overcoming these challenges through strategic planning and investment is crucial for the
growth of AI adoption in the Philippine construction industry.

Keywords: AI adoption; Philippine construction industry; Cost management; Technological

integration; Sustainability.

1.0 Introduction
In recent years, the global construction industry has increasingly turned to Artificial Intelligence (AI) technologies
to address its challenges, including labor shortages, cost overruns, and the need for greater efficiency and safety
(Adeloye et al., 2023). Worldwide, AI was leveraged to optimize project management, enhance predictive
maintenance, and improve overall productivity (Jambol et al., 2024). Countries like Bahrain, France, and Germany
made significant strides in integrating AI into their construction practices, resulting in substantial improvements
in project outcomes and operational efficiencies (Aljawder & Al-Karaghouli, 2024; Pan & Zhang, 2023). These
advancements set a precedent for other nations, showcasing the potential benefits of AI in transforming the
construction sector.

The construction industry is a cornerstone of economic development globally, including in the Philippines, where
it plays a crucial role in infrastructure growth and employment (Siman, 2023). As this sector navigates the
complexities of modernization, the adoption of Artificial Intelligence (AI) technologies stands out as a
transformative potential (Bang & Olsson, 2022). AI offered promises of efficiency gains, improved safety measures,
and enhanced project management capabilities, which significantly benefited the Philippine construction
landscape (Korke et al., 2023). However, the Philippine construction industry faced challenges such as limited
technological infrastructure, a shortage of skilled professionals, and regulatory hurdles (Dimaculangan, 2023;
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0).
Subia et al., 2019; Santos et al., 2022). Understanding the current state of AI adoption in the Philippines is essential
for identifying these barriers and developing strategies to overcome them.

This scholarly review explored the current state of AI adoption within the Philippine construction industry,
addressing several key research questions. Firstly, it described the extent and scope of AI technology
implementation across various construction practices and projects in the Philippines. Understanding this current
state is critical for stakeholders and policymakers to identify existing gaps and opportunities for further
integration of AI (Dwivedi et al., 2021). Secondly, the review explored the factors influencing AI adoption in the
Philippine construction industry. By examining these factors—ranging from technological feasibility and cost-
effectiveness to regulatory frameworks and organizational readiness—this research aims to uncover the
motivations and barriers shaping AI uptake in Philippine construction (Obana, 2024). Moreover, the study
investigated how the Philippine construction industry can prepare for the integration of AI technologies. This
includes identifying challenges such as the shortage of skilled AI professionals and the need for targeted
investments in infrastructure and training. Addressing these challenges will be essential for maximizing the
potential benefits of AI while mitigating risks (Shahriar et al., 2023). Lastly, the review assessed both the potential
benefits and challenges associated with AI integration in the Philippine construction industry. By examining local
case studies and best practices, the research aims to derive actionable insights that can inform strategic decision-
making and policy formulation (Khan et al., 2024).

To sum up, this research is motivated by the imperative to comprehensively understand the landscape of AI
adoption in Philippine construction, anticipate future trends, and provide practical recommendations for
stakeholders to harness AI's transformative potential effectively. By addressing these research questions, this
study seeks to contribute to the ongoing discourse on technological innovation within the Philippine construction
industry.

Theoretical and Conceptual Framework

The adoption of AI technologies in the construction industry is a process influenced by various factors. To
understand this complexity, several key concepts and theories are instrumental. This research leverages several
theoretical and conceptual frameworks to examine the adoption of AI technologies in the Philippine construction
industry. The primary theoretical framework is the Technology-Organization-Environment (TOE) framework,
which describes the relationship between technological, organizational, and environmental factors that influence
technology adoption (Lin & Chen, 2023). The TOE framework is particularly relevant as it provides a
comprehensive perspective on the factors affecting AI adoption in this sector.

In addition to the TOE framework, the Technology Readiness Index (TRI) serves as another framework for this
study. The TRI measures the readiness of individuals and organizations to adopt new technologies, offering a
critical assessment of the Philippine construction industry's preparedness for AI integration (Lai & Lee, 2020). This
framework is essential for understanding the industry's current capabilities and identifying areas needing
improvement (Santos & Jocson, 2021). The theoretical anchor for this research is the diffusion of innovation theory,
which explains how new technologies are adopted and spread within a society (Okour et al., 2021). This theory is
pertinent as it provides insights into both the benefits and challenges associated with AI adoption in the
construction industry, guiding the analysis of how AI can be effectively integrated (LlenadaSantos, 2022).

The application of these frameworks to the research questions is as follows: the TOE framework addresses the
current state of AI adoption and the factors influencing it, corresponding to research questions 1 and 2. The TRI
framework is applied to research question 3, which focuses on how the industry can prepare for AI integration.
The diffusion of innovation theory is relevant to research question 4, which explores the potential benefits and
challenges of AI adoption.

2.0 Methodology
This research reviewed the literature on the adoption of AI in the Philippine construction industry. To achieve this
objective, a systematic review of existing studies was conducted. The systematic review approach was chosen
because it allows for identifying, selecting, and analyzing relevant literature on AI adoption in the Philippine
construction industry (Ismail et al., 2021). Following the guidelines of the Preferred Reporting Items for Systematic
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Reviews and Meta-Analyses (PRISMA) statement, this approach ensured a structured and transparent review
process.

Data collection involved a comprehensive search of electronic databases, including Google Scholar, JSTOR, and
EBSCO. Keywords such as "Philippines," "Construction Industry," "artificial intelligence," and "AI technology"
were used to identify relevant studies. Initially, 150 articles were identified through this search. These articles were
then screened and assessed for eligibility, resulting in 20 articles being selected for inclusion in the final review.
This selection process ensured that only the most pertinent studies were included, providing a focused and
relevant dataset for analysis.

The sample for this study consisted of 20 articles published between 2014 and 2024, all written in English.
Purposive sampling was employed to select articles that met specific eligibility criteria relevant to the study's focus
on adopting AI in the Philippine construction industry. This sampling technique was crucial in ensuring that the
selected articles were directly relevant to the research questions and provided comprehensive insights into the
current state and challenges of AI adoption in the industry.

The data analysis technique used in this study was thematic analysis. Each selected article was thoroughly read
and analyzed to identify key themes related to AI adoption in the Philippine construction industry. These themes
were then organized and presented coherently, offering a comprehensive review of the literature. This analytical
approach allowed for a deep understanding of the factors influencing AI adoption and the specific challenges
faced by the industry.

However, the study had some limitations. The primary limitation was the potential for selection bias, as only
articles written in English and published between 2014 and 2024 were included in the review. Additionally, the
study relied solely on literature and did not incorporate empirical data, which may limit the generalizability of
the findings. Despite these limitations, the study provides valuable insights into the current state of AI adoption
in the Philippine construction industry.

Ethical considerations were carefully adhered to throughout the study. All selected articles were properly cited to
acknowledge the original authors' contributions and avoid plagiarism. Any potential conflicts of interest were
disclosed to maintain transparency. Since the study did not involve human participants, ethical approval was not
required, and the review process adhered to standard ethical guidelines for literature reviews.

3.0 Results and Discussion

3.1 Current State of AI Adoption
Adopting AI technologies in the Philippine construction industry transforms various sector aspects, significantly
improving efficiency, accuracy, sustainability, and safety, as shown in Table 1. One key area of impact is cost
estimation and budgeting. AI, particularly Artificial Neural Networks (ANN), provides accurate cost predictions
and enhances budgeting methods. This is crucial for financial planning and project success, as shown in studies
by Roxas et al. (2019) and Allam et al. Roxas & Ongpeng (2014) and Gante et al. (2022) further highlight how ANN
models improve structural cost estimation and road construction cost forecasting, benefiting financial
management in construction projects.

In project management and performance, AI technologies enable predictive modeling, which enhances decision-
making and project outcomes. According to Fernandez et al. (2021) and Lim et al. (2021), AI is used in predictive
modeling and construction management, especially in low-cost housing projects. This leads to more efficient
processes and better project performance, improving timelines, resource allocation, and overall productivity in
the construction industry. Sustainability and environmental impact are also critical areas where AI is making
substantial contributions. AI improves green building ratings and integrates sustainable materials into
construction projects, as noted by Lat et al. (2022) and Silva et al. (2020). Additionally, Cataldo et al. (2022) discuss
the role of AI in sustainable supply chain management (SSCM), promoting sustainability throughout the
construction supply chain. These advancements help the industry adopt more environmentally friendly practices
and comply with global sustainability standards.

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 Table 1. Identified sub-themes in the current state of AI adoption
Sub-themes Applications Related Literature
AI in Cost Estimation and Accurate cost predictions and budgeting Roxas et al. (2019); Allam et al.; Roxas & Ongpeng
Budgeting improvements (2014); Gante et al. (2022); Lim et al. (2021)

AI in Project Management and Predictive modeling and construction Fernandez et al. (2021); Lim et al. (2021)
Performance management

AI in Sustainability and Green building ratings, sustainability Lat et al. (2022); Silva et al. (2020); Cataldo et al. (2022)
Environmental Impact improvements, and SSCM

AI in Safety and Compliance Safety technologies and PPE compliance Magon & Imbang (2022); Reyes et al. (2022)
detection

AI in Material and Structural Optimizing concrete properties and 3D Silva et al. (2020); Nebrida (2022); Alejandrino et al.
Optimization printing (2020)

AI in Geotechnical and Soil profiling, geotechnical analysis, and

Structural Analysis structural health monitoring Galupino & Dungca (2022); Villanueva et al. (2022)

AI in Efficiency and Enhancing supply chain efficiency and Encabo (2023); Pusod & Villaverde (2021)
Documentation problem documentation

Safety and compliance are crucial for the construction industry, and AI technologies significantly enhance these
aspects. Magon & Imbang (2022) and Reyes et al. (2022) report on the development of AI-driven safety
technologies and the use of Convolutional Neural Networks (CNN) for detecting personal protective equipment
(PPE) compliance. These innovations help mitigate risks and ensure worker safety on construction sites,
addressing one of the industry's most pressing concerns. AI also proves invaluable in material and structural
optimization. It optimizes concrete properties for better material efficiency and environmental sustainability, as
highlighted by Silva et al. (2020). The integration of AI in 3D printing, discussed by Nebrida (2022) and Alejandrino
et al. (2020), further enhances material efficiency and automates building processes, representing a significant
technological advancement in construction practices.

AI benefits geotechnical and structural analysis through advanced soil profiling and structural health monitoring.
Studies by Galupino and Dungca (2022) and Villanueva et al. (2022) demonstrate machine learning for soil
profiling and deep learning for crack detection, ensuring construction projects' structural integrity and safety.
These applications improve the accuracy of geotechnical assessments and facilitate proactive maintenance of
structures. Lastly, AI enhances efficiency and documentation within the construction industry. Encabo (2023)
notes that AI improves supply chain efficiency, leading to streamlined operations and better resource utilization.
Pusod and Villaverde (2021) emphasize the role of AI in documenting construction problems, which enhances
project management and workflow efficiency. These improvements reduce delays, minimize costs, and ensure
smoother project execution.

3.2 Factors Influencing AI Adoption

Various factors influence the adoption of AI technologies in the Philippine construction industry, each with
significant implications for the sector's growth and development, as shown in Table 2. Cost and Operational
Efficiency are major drivers of AI adoption. Studies by Encabo (2023) and Nebrida (2022) highlight AI's potential
to reduce operational costs and boost productivity. Accurate cost estimation, as discussed by Roxas et al. (2019)
and Allam et al., is crucial for efficient project planning and execution. Construction companies must invest in AI
technologies to stay competitive by managing costs effectively and enhancing overall efficiency.

In Project Management and Decision-Making, AI enables more efficient project planning and accurate decision-
making, especially in complex projects like road construction (Gante et al., 2022). Pusod and Villaverde (2021) note
that AI can reduce delays and solve construction problems more effectively. This suggests that adopting AI can
lead to more timely project completions and improved problem-solving capabilities, which are vital for
maintaining project schedules and budgets.

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 Table 2. Identified sub-themes in the current state of AI adoption
Sub-themes Factors Related Literature
Cost and Operational Operational cost benefits, accurate cost estimation Encabo (2023); Nebrida (2022); Roxas et al.
Efficiency (2019); Allam et al.

Project Management and Efficient project planning, accurate decision-making, Gante et al. (2022); Pusod & Villaverde
Decision-Making delay reduction, problem solving (2021)

Quality and Performance High-quality project outputs, socio-economic progress, Fernandez et al. (2021); Lim et al. (2021)
Improvement workmanship, policy development

Safety and Regulatory Safety enhancements, regulatory compliance, deep Magon & Imbang (2022); Reyes et al. (2022)
Compliance learning advancements

Sustainability and Sustainable material use, urbanization, environmental Manahan Malasan et al. (2021); Lat et al.
Environmental Impact concerns, energy efficiency (2022)

Technological and Data Data completeness and quality, technology limitations Roxas et al. (2019); Galupino & Dungca
Challenges (2022); Alejandrino et al. (2020)

Ethical and Skill Ethical concerns, skill requirements Nebrida & Oliveros (2023); Cataldo et al.
Considerations (2022)

Quality and Performance Improvement is another area where AI plays a crucial role. Fernandez et al. (2021) and
Lim et al. (2021) emphasize the need for high-quality project outputs and the socio-economic progress driven by
AI adoption. Addressing workmanship defects and developing policy guidelines to support AI implementation
is essential for enhancing construction quality. Embracing AI can lead to higher-quality constructions that meet
industry standards and societal needs. Safety and Regulatory Compliance are also critical. AI technologies
enhance safety regulations and ensure compliance, particularly through advancements like deep learning for PPE
compliance (Magon & Imbang, 2022; Reyes et al., 2022). This implies that AI can significantly reduce workplace
accidents and ensure adherence to safety standards, crucial for worker safety and legal compliance.

In Sustainability and Environmental Impact, AI adoption is driven by the need for sustainable material use and
addressing environmental concerns (Manahan Malasan et al., 2021; Lat et al., 2022). AI helps manage urbanization
challenges and improve energy efficiency. AI can support the construction industry’s efforts to become more
sustainable and environmentally friendly, aligning with global sustainability goals. However, the industry faces
Technological and Data Challenges. Ensuring data completeness and quality is a significant hurdle, as Roxas et
al. (2019) and Galupino & Dungca (2022) highlight. Current AI technologies also have inherent limitations
(Alejandrino et al., 2020). Overcoming these challenges requires substantial investment in technology and data
infrastructure. Companies must prioritize data management and technological upgrades to leverage AI's benefits
fully.

Lastly, Ethical and Skill Considerations are crucial for AI adoption. Ethical concerns related to AI use must be
addressed, as noted by Nebrida and Oliveros (2023). Additionally, there is a need for skilled personnel to manage
and implement AI technologies effectively (Cataldo et al., 2022). The construction industry must invest in training
and education to develop the necessary skills and address ethical issues, ensuring responsible and effective AI
implementation. Overall, the identified factors affecting the adoption of artificial intelligence in the construction
industry were encompassed by the technological, organizational, and environmental factors that influence
technology adoption according to the TOE framework (Lin & Chen, 2023).

3.3 Preparations for AI Adoption

The adoption of AI technologies in the Philippine construction industry stands to revolutionize key aspects, driven
by extensive preparation outlined in recent literature, as shown in Table 3. Central to this transformation is
integrating Digital Tools and Modeling, such as BIM AI software and MATLAB simulations, highlighted by
Nebrida & Oliveros (2023) and Roxas et al. (2019). These tools promise enhanced project visualization, streamlined
collaboration, and improved decision-making, addressing longstanding design and project management
inefficiencies.

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 Table 3. Identified sub-themes in the preparations for AI adoption
Sub-themes Preparation Factors Related Literature
Digital Tools and Modeling Digital modeling, BIM AI software, and Nebrida & Oliveros (2023); Roxas et al. (2019); Allam et
MATLAB use al.

Data Collection and Comprehensive data collection, analysis of Roxas et al. (2019); Roxas & Ongpeng (2014); Allam et al.;
Analysis past projects Gante et al. (2022)

Stakeholder Training and Workforce training, stakeholder education, Nebrida & Oliveros (2023); Fernandez et al. (2021);
Education and relations Encabo (2023)

Assessment and Evaluation Assessment tools, meta-cognitive analysis, Fernandez et al. (2021); Lim et al. (2021)
policy guidelines

Algorithm Development Algorithm development, statistical tools, Pusod & Villaverde (2021); Silva et al. (2020); Galupino &
and Validation model training Dungca (2022); Villanueva et al. (2022)

Sustainability and Sustainability assessment, green building Lat et al. (2022); Magon & Imbang (2022)
Innovation ratings, innovation mapping

Practical Applications and Practical application development, 3D Villanueva et al. (2022); Nebrida (2022)
On-Site Utility printing impacts

Financial and Technological Smart technology investment, ML algorithm Cataldo et al. (2022); Alejandrino et al. (2020)
Support implementation

Data Collection and Analysis emerge as foundational pillars for AI readiness. Roxas et al. (2019) and Allam et al.
emphasize robust data collection methods and advanced analytics using tools like MATLAB. Effective use of
historical project data, noted by Gante et al. (2022), enhances predictive capabilities and optimizes cost estimation
and resource allocation, thereby reducing project risks and improving efficiency. The importance of Stakeholder
Training and Education cannot be overstated in fostering AI adoption. Nebrida and Oliveros (2023) stress the need
for workforce training in digital modeling and AI technologies, ensuring stakeholders can leverage these tools
effectively. Fernandez et al. (2021) advocate for meta-cognitive analysis and stakeholder education to align
expectations and enhance project outcomes. This preparation is crucial for overcoming initial resistance to change
and maximizing the benefits of AI integration.

Assessment and Evaluation methodologies, including assessment tools and policy guidelines formulation (Lim et
al., 2021), are essential for measuring the impact and success of AI implementations. These frameworks facilitate
continuous improvement and ensure AI applications meet industry standards and regulatory requirements,
fostering an environment conducive to innovation and sustainable growth. In terms of Algorithm Development
and Validation, advancements in machine learning algorithms (Pusod & Villaverde, 2021; Silva et al., 2020) play
a pivotal role in predictive modeling and real-time decision support in construction projects. Robust algorithmic
frameworks and validation processes are critical for enhancing AI-driven applications' accuracy, reliability, and
performance metrics.

Sustainability and Innovation are driving forces behind AI adoption in the construction sector. Lat et al. (2022)
highlight AI's role in sustainability assessments and green building ratings, aligning with global environmental
initiatives. Magon and Imbang (2022) stress innovation mapping and socioeconomic reviews to identify
opportunities for AI-driven advancements that contribute to economic development and environmental
stewardship. As discussed by Villanueva et al. (2022) and Nebrida (2022), practical applications and on-site utility
underscore the tangible benefits of AI technologies in enhancing construction processes and project outcomes.
From optimizing material usage to improving methodologies, these applications illustrate AI's transformative
potential in mitigating challenges and advancing industry standards.

However, realizing these benefits hinges on addressing Financial and Technological Support. Cataldo et al. (2022)
advocate for strategic investments in smart technologies and financial support, particularly for SMEs, to facilitate
widespread AI adoption. Alejandrino et al. (2020) stress the importance of handling large datasets and

466
implementing scalable machine learning algorithms, highlighting the need for robust technological infrastructure
to sustain long-term AI integration.

3.4 Benefits of AI Adoption

Adopting AI technologies in the Philippine construction sector promises transformative benefits across several
critical dimensions, as highlighted by the identified sub-themes in the literature shown in Table 4.

Table 4. Identified sub-themes in the benefits of AI adoption

Sub-themes Associated Benefits Related Literature
Increased Productivity and Increased operational efficiency, enhanced project Nebrida & Oliveros (2023), Encabo (2023), Lim
Efficiency delivery speed et al. (2021)

Improved Cost Management Reduced operational costs, accurate cost Roxas et al. (2019), Roxas & Ongpeng (2014),
predictions Pusod & Villaverde (2021)

Enhanced Decision-Making Informed decision-making, improved forecasting Fernandez et al. (2021), Allam et al., Magon &
Imbang (2022)

Higher Quality and Use of sustainable materials, improved Manahan Malasan et al. (2021), Lat et al.
Sustainability environmental impact assessments (2022), Silva et al. (2020)

Optimization of Processes Material optimization, production efficiency Alejandrino et al. (2020), Nebrida (2022)
improvement

Safety and Compliance Enhanced safety compliance, protocol integration Reyes et al. (2022), Galupino & Dungca (2022),
Villanueva et al. (2022)

Innovation and Technological Technological innovation, advancement in Gante et al. (2022), Cataldo et al. (2022)
Advancement construction methods

Economic Competitiveness Improved economic competitiveness, alignment Magon & Imbang (2022), Cataldo et al. (2022)
with socio-political settings

Environmental Benefits Environmental sustainability benefits, reduction of Lat et al. (2022), Nebrida (2022), Silva et al.
carbon footprint (2020)

Digital Transformation Adoption of digital methods, efficiency gains Nebrida & Oliveros (2023), Encabo (2023),
through automation Galupino & Dungca (2022)

One of the primary advantages is Increased Productivity and Efficiency. AI-driven tools, as demonstrated by
Nebrida & Oliveros (2023), Encabo (2023), and Lim et al. (2021), significantly enhance operational efficiency and
expedite project delivery. AI accelerates project timelines and boosts overall productivity by automating routine
tasks, optimizing resource allocation, and streamlining workflows. Moreover, Improved Cost Management
emerges as another pivotal benefit. Studies by Roxas et al. (2019), Roxas & Ongpeng (2014), and Pusod &
Villaverde (2021) underscore AI's ability to facilitate precise cost predictions and reduce operational expenses.
Through advanced analytics and predictive modeling, AI enables better financial planning, risk management, and
budget adherence, which is essential for sustainable project execution in the Philippine context.

AI adoption also enhances Decision-Making capabilities within the industry. Fernandez et al. (2021), Allam et al.,
and Magon and Imbang (2022) highlight AI's role in providing data-driven insights and improving forecasting
accuracy. By leveraging real-time data analysis and predictive algorithms, stakeholders can promptly make
informed decisions, mitigate risks, and capitalize on opportunities, enhancing project outcomes and stakeholder
satisfaction. Integrating AI contributes significantly to Higher Quality and Sustainability practices in construction.
Research by Manahan Malasan et al. (2021), Lat et al. (2022), and Silva et al. (2020) emphasizes AI's capacity to
promote sustainable construction methods through the use of eco-friendly materials and enhanced environmental
impact assessments. AI-driven tools optimize material usage, minimize waste, and facilitate energy-efficient
construction practices, aligning with global sustainability goals and regulatory requirements.

Furthermore, AI supports process Optimization by improving material selection, enhancing production efficiency,
and optimizing operational workflows, as noted by Alejandrino et al. (2020) and Nebrida (2022). These

467
advancements streamline construction operations and enhance scalability and adaptability to market demands,
further driving efficiency gains and cost savings. Regarding Safety and Compliance, AI technologies ensure
enhanced safety protocols and regulatory compliance on construction sites. Reyes et al. (2022), Galupino & Dungca
(2022), and Villanueva et al. (2022) illustrate AI's capability in real-time safety monitoring, risk prediction, and
protocol integration, fostering a safer working environment and reducing accidents.

Moreover, AI adoption stimulates Innovation and Technological Advancement in construction methods. Gante et
al. (2022) and Cataldo et al. (2022) emphasize how AI facilitates technological innovation by enabling advanced
construction techniques and integrating smart technologies. This innovation enhances project efficiency and
positions Philippine construction firms at the forefront of global technological advancements. Economically, AI
adoption contributes to Improved Economic Competitiveness by optimizing resource allocation, improving
project efficiency, and aligning with socio-political settings, as discussed by Magon & Imbang (2022) and Cataldo
et al. (2022). These benefits enhance industry competitiveness, attract investment, and stimulate economic growth,
creating opportunities for local businesses and job creation.

Lastly, AI adoption promotes Environmental Benefits by fostering sustainable construction practices and reducing
the carbon footprint. Lat et al. (2022), Nebrida (2022), and Silva et al. (2020) highlight how AI enables efficient
resource use, minimizes environmental impact, and supports green building initiatives, aligning with global
sustainability agendas.

3.5 Challenges of AI Adoption

The adoption of AI technologies in the Philippine construction industry presents promising opportunities,
alongside several significant challenges that must be addressed to fully realize its potential, as shown in Table 5.
Adopting AI technologies in the Philippine construction industry presents promising opportunities alongside
several significant challenges that must be addressed to realize its full potential. Ethical and Security Concerns
stand out as critical hurdles, as highlighted by Nebrida & Oliveros (2023) and Reyes et al. (2022). Data privacy,
algorithm bias, and cybersecurity risks need careful management to ensure ethical use and protect sensitive
information, which is essential for maintaining trust and credibility within the industry.

Table 5. Identified sub-themes in the challenges of AI adoption

Sub-themes Associated Challenges Related Literature
Ethical and Security Ethical implications, security risks Nebrida & Oliveros (2023), Reyes et al. (2022)
Concerns

Financial Constraints Funding challenges, financial investments Encabo (2023), Cataldo et al. (2022)

Data Complexity and Quality Handling complex data, ensuring data accuracy Roxas et al. (2019), Gante et al. (2022), Silva et al.
(2020)

Stakeholder Trust and Building trust, stakeholder acceptance Roxas et al. (2019), Roxas & Ongpeng (2014)
Acceptance

Accuracy and Adaptability of Ensuring model accuracy, adapting models to Lim et al. (2021), Galupino & Dungca (2022),
Models diverse project conditions Villanueva et al. (2022)

Technological Complexity Managing complex AI technologies, technological Galupino & Dungca (2022), Alejandrino et al.
risks (2020)

Policy and Regulatory Adhering to policy guidelines, regulatory Lim et al. (2021), Pusod & Villaverde (2021)
Challenges compliance

Long-term Sustainability Sustainable integration of AI technologies, longevity Cataldo et al. (2022), Nebrida (2022)
of AI solutions

Skills and Workforce Skills gap, workforce training, and adaptation Encabo (2023), Nebrida & Oliveros (2023)
Adaptation

Integration with Existing Integrating AI with current systems, compatibility Pusod & Villaverde (2021), Silva et al. (2020)
Systems issues

468
Financial Constraints pose another substantial challenge. Encabo (2023) and Cataldo et al. (2022) underscore the
funding challenges and significant financial investments required for implementing AI technologies. Overcoming
these barriers requires strategic financial planning, potential partnerships with financial institutions, and
demonstrating a clear return on investment to stakeholders. Data Complexity and Quality represent fundamental
challenges in AI adoption, as noted by Roxas et al. (2019), Gante et al. (2022), and Silva et al. (2020). Handling large
volumes of complex data while ensuring accuracy and reliability is crucial for the effectiveness of AI applications
in construction. Robust data management strategies, advanced analytics capabilities, and rigorous validation
processes are necessary to mitigate errors and enhance decision-making outcomes.

Building Stakeholder Trust and Acceptance is crucial for successful AI adoption. Roxas et al. (2019) and Roxas &
Ongpeng (2014) emphasize the importance of transparency in AI processes and demonstrate tangible benefits to
gain acceptance among project managers, contractors, and regulatory bodies. Effective communication and
addressing concerns proactively can help mitigate resistance to technological change. Ensuring the Accuracy and
Adaptability of Models is another challenge, particularly in diverse project conditions and environments,
highlighted by Lim et al. (2021), Galupino & Dungca (2022), and Villanueva et al. (2022). AI models must be
continuously refined and adapted to specific project requirements to maintain reliability and effectiveness in
decision-making processes.

Technological Complexity presents challenges in managing advanced AI technologies and addressing associated
risks, as Galupino & Dungca (2022) and Alejandrino et al. (2020) noted. This includes understanding and
mitigating technological risks, ensuring system compatibility, and integrating AI seamlessly into existing
workflows without disrupting operations. Addressing Policy and Regulatory Challenges is crucial for navigating
legal frameworks and compliance requirements, as Lim et al. (2021) and Pusod & Villaverde (2021) highlighted.
Adhering to evolving policies and regulations governing AI adoption in construction ensures legal compliance
and minimizes regulatory risks.

Long-term Sustainability of AI solutions requires sustainable integration and ongoing maintenance, as Cataldo et
al. (2022) and Nebrida (2022) emphasize. Ensuring the longevity and scalability of AI implementations involves
strategic planning, resource allocation, and adaptation to technological advancements over time. Moreover, Skills
and Workforce Adaptation presents challenges due to the skills gap and the need for workforce training in AI
technologies, as noted by Encabo (2023) and Nebrida and Oliveros (2023). Upskilling the workforce, fostering a
culture of innovation, and investing in continuous education are essential for maximizing the benefits of AI
adoption and driving industry-wide transformation. Finally, Integration with Existing Systems involves
overcoming compatibility issues and ensuring seamless integration of AI technologies with current construction
systems, highlighted by Pusod & Villaverde (2021) and Silva et al. (2020). Careful planning, technical expertise,
and phased implementation strategies can minimize disruptions and optimize operational efficiency.

4.0 Conclusions
The current state of AI adoption in the Philippine construction industry reveals a promising yet varied landscape.
Technologies such as 3D printing, predictive modeling, and machine learning are being integrated to enhance
project delivery and operational efficiency. Despite these advancements, the adoption rate varies across different
sectors and organizations, reflecting a nascent stage of AI integration in the industry. Continued efforts to embrace
these technologies can position the industry to meet modern challenges better and capitalize on opportunities for
innovation and growth.

Several factors influence the adoption of AI in the Philippine construction sector. Key drivers include improved
cost management, enhanced decision-making, and higher quality standards. However, financial constraints, data
complexity, and stakeholder trust present significant barriers. Understanding and addressing these factors is
essential for creating a conducive environment for AI adoption, ultimately leading to more efficient and effective
construction processes. Preparation for AI adoption involves several critical steps. Digital readiness, including
workforce training and data management, is paramount. Stakeholder engagement and developing robust
technological frameworks are also crucial to ensure smooth integration and functionality. By focusing on these
preparatory measures, the construction industry can harness AI’s full potential, driving significant improvements
and fostering a culture of innovation and continuous improvement.
469
The benefits of AI adoption in the Philippine construction industry are manifold. AI technologies enhance
productivity, cost-efficiency, and decision-making capabilities while promoting sustainability and safety. These
advancements improve the quality of construction projects and contribute to economic competitiveness and
environmental stewardship. By leveraging these benefits, the industry can set a path for leadership in the global
construction landscape, achieving higher standards and greater operational success. Despite the potential benefits,
the challenges of AI adoption must be addressed to realize its full potential. Data quality, technological
complexity, ethical concerns, and the need for a skilled workforce pose significant hurdles. Overcoming these
obstacles through strategic planning, stakeholder engagement, and investment in technology and human
resources will pave the way for sustainable growth and innovation in the sector. By tackling these challenges head-
on, the Philippine construction industry can enhance its competitiveness and contribute to broader socio-economic
progress.

Future studies could explore the longitudinal impact of adopting AI in the construction industry. Further
investigation into the effectiveness of AI tools and technological applications in improving the efficiency of
construction methods can also yield innovative approaches that enhance the adoption of AI. Additionally,
comparative studies across different construction methods, including traditional and AI approaches, would
provide insights into the advantages and disadvantages of adopting or integrating AI with the current
construction practices.

5.0 Contributions of Authors

The authors confirm the equal contribution in each part of this work. All authors reviewed and approved the final version of this work.

6.0 Funding
This work received no specific grant from any funding agency.

7.0 Conflict of Interests

All authors declare that they have no conflicts of interest.

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