Artificial intelligence to streamline building processes and address housing shortages
Artificial intelligence is poised to play a larger role in New South Wales’ construction sector, with new technology being introduced to speed up building times, reduce costs, and help alleviate the state’s ongoing housing shortage.
Several pilot projects are underway, led by Chandolin Construction in partnership with Cuby Technologies, which are trialling AI-driven systems to manufacture and assemble key housing components such as framing and modular fittings. The companies plan to expand the use of this technology to deliver between 200 and 300 homes next year, with further scaling intended for larger housing developments.
The AI systems are designed to integrate much of the construction process into a single workflow, aiming to reduce delays caused by weather, subcontractor availability, and labour shortages. Mobile micro-factories – portable production units – are used to fabricate home components, which are then shipped to building sites with the help of QR-coded instructions for efficient assembly.
“This transforms housing from a labour-intensive construction process into a digitally controlled manufacturing system,” said Sarah Dimitrievski, director at Chandolin Construction. “It drastically reduces the time, cost and labour required to build high-quality homes, delivering units in 30 to 60 days at a cost that is often one third below traditional methods.
“This unlocks the ability to scale housing supply rapidly, even in regions with tight labour markets or high material costs, making it an ideal solution for Australia’s housing shortage.”
The materials produced through this process include structural steel frames, insulated wall panels, pier foundations, and prefabricated service cores. According to Dimitrievski, these materials are engineered for durability, energy efficiency, and resistance to fire, mould, pests, and rot. Home designs can also be customised to meet local preferences, with buyers able to select from a range of pre-approved modules.
The Housing Industry Association’s chief economist, Tim Reardon, noted that AI could offer significant benefits to the sector, particularly in reducing the administrative burden associated with regulatory compliance and planning approvals.
“There’s more white collar people involved in building a house these days trying to cope with red tape and regulatory requirements of building – which has made homes increasingly expensive – it is in that area that AI presents enormous opportunity,” Reardon said. “I think that what we’re going to see is two particular components of homebuilding that will be really amenable to that and that is the engineering component and the planning component.”
Reardon added that while AI may change certain roles within the industry, it is unlikely to replace skilled trades. Instead, he suggested that the technology could shift the focus of employment from administrative tasks to productive work on site.
“It does mean more homes and therefore more homebuilding which will employ more people,” he said. “It is simply shifting the cost from non-productive engagement to productive engagement of the labour force.
“That argument that AI will take peoples jobs is no different to what we saw in the industrial revolution – it’s not that technology takes people’s jobs, it does change roles. AI won’t take your job. Somebody that knows how to use AI will.”
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