Neil Davidson, Group Vice President of Deltek, says it’s the year Architecture and Engineering firms need to embed AI and sustainability into their business DNA for resilience and growth.
“As more companies strategically adopt emerging technologies and environmental best practices, 2024 is shaping up to be a pivotal year for architecture and engineering (A&E). Firms that harness automation and AI and prioritise sustainability will optimise operations, attract top talent and be future proof for the long term. In this article I will anticipate the key trends we might expect to see in the year ahead.
Automation and AI to augment talent
Artificial intelligence has begun making inroads with promising applications like generative design and digital twins. Thoughtful implementation of these tools for repetitive tasks and data analysis will empower employees to focus on more fulfilling, strategic work.
And, maintaining a “people first” mantra will ensure automation enhances rather than replaces roles. With proper training and change management support, staff can smoothly transition as automation is embedded across operations. Once embedded into company culture, automation has many benefits. Automating repetitive tasks frees up employees to focus on creativity, strategy and customers. With understanding and vision, firms can empower workers while benefiting productivity. Despite adoption challenges, automation stands to enhance sustainability for willing enterprises. A&E firms that leverage technology to unlock human creativity will realise the greatest gains.
Sustainability becomes standard
Companies are also planning to amplify their Environmental, social and governance (ESG) initiatives as a priority.
Business leaders recognise it is a significant change and one that is needed, with nearly half (46%) saying heightened environmental and sustainability consciousness plans will be a key challenge to address over the next five years. As the year unfolds, A&E firms can leverage resourceful tools such as the International Energy Agency’s Net Zero Emissions by 2050 Scenario to align their ESG commitments. This will ensure they are making purposeful strides towards achieving net zero or even towards the creation of positive energy buildings and a far more sustainable future.
Strategic digital investments
Project landscapes are shifting, and so are the tools project managers have available to help reshape traditional practices. Many A&E firms will prioritise new technology investments for long-term resilience next year, as revealed by Deltek’s Digital Trends Unwrapped: Tech Powering Architecture and Engineering Project Success in 2024 report. To stay ahead of the curve, nearly half (44%) of engineering firms are looking toward IT infrastructure as their top investment.
Deltek’s data also suggests the A&E sector will optimise technology integration for tracking KPI’s. While currently only one in five demonstrate confidence in monitoring essential KPI’s like operating profit, change is near. Refined integrations promise granular, real-time analytics, and offer enhanced visibility to improve KPI management so that firms can confidently undertake more decisive action. Rather than vague projections, leaders can gain on-demand clarity into operations. And as projects stay in flux, technology advancements provide the visibility to anchor smarter decisions and pull ahead.
The next digital transformation wave
A sizable portion of architecture and engineering companies find themselves well into their digital evolution, per Deltek’s report showing 42% and 33% residing in advanced stages of their digital transformation (DX) journey, respectively. For others still exploring transformation, their interest is evident, with 38% of architectural firms now navigating these initial steps. Appreciation of DX’s competitive necessity also surges across the industry, as 92% foresee losses without substantial progress.
As firms increasingly leverage maturing technologies and see success, this will naturally accelerate the pace of transformation and fuel a virtuous cycle of rising ambition. While the journey’s end remains unclear (no one is there yet), the trends reveal an exciting future full of innovation and sustainability.”
