A View into Construction 2025: The Rise and Risks of AI, Data Sovereignty, and Industry Standards

As we approach 2025, the construction industry finds itself at the intersection of transformative technologies, evolving geopolitical landscapes, and a growing emphasis on data standards for collaborative working. These dynamics promise to redefine how we build and innovate over the coming year. Throughout 2024 we have continued to witness remarkable advancements in technology adoption and digital transformation. Here are my top three trend predictions for 2025: 

1. The rise and risks of machine learning, large language models and AI 
2. Hyper-nationalism in cyber security 
3. The critical role of industry standards in ensuring data resilience 

The Rise and Risk of Large Language Models (LLMs) and AI 

Machine Learning and Artificial intelligence (AI), especially large language models (LLMs) and industry-specific retrieval-augmented generation (RAG) techniques, are playing an increasingly central role in leveraging construction data. These tools hold tremendous promise for streamlining project management, optimizing designs, and improving communication among stakeholders. However, their rapid adoption also brings significant data security risks. Feeding sensitive project details into generalized public AI systems can create vulnerabilities, with the clear potential for unauthorized data retrieval in the future. Currently, industry is integrating these technologies at a fast pace, often without fully considering the long-term implications of how and where this data might resurface. 

To harness the transformative potential of AI while minimizing risks, the infrastructure industry must prioritize secure, tailored enterprise solutions. Instead of bolting standard public AI models such as OpenAI, Gemini, and the like; organizations should leverage personalized AI models designed specifically for them at an organization or even project level—ensuring data ownership and protection remain paramount. By maintaining secure environments and deploying proprietary models, the industry can achieve the dual goals of fostering innovation towards a future of coordinated AI-agents supporting collaborative working and doing maintaining security and data protection compliance at all times! 

Hyper-Nationalism and Data Sovereignty 

Geopolitical tensions—from disputes between major powers and the weaponization of cyber—are reshaping how enterprises manage data. Unlike the early days of the .com boom and the ensuing rise of Software as a Service (SaaS), where data’s physical location was of little concern, today’s environment demands strict awareness of where data resides in data centers. This shift has led to a proliferation of data sovereignty laws and regulations across countries, supranational regions and global companies alike. 

Large-scale construction projects regularly involve highly sensitive information, such as infrastructure blueprints and resource management plans for energy sectors including water, nuclear, and wind power. Safeguarding this data requires robust internal policies as well as stringent scrutiny of supply chain partners. Increasingly, data sovereignty is becoming a focal point, with organizations prioritizing the storage and processing of project data within the region or country where the project is located. This trend is expected to intensify in the coming year as regulations continue to become stricter. 

The Critical Role of Industry Standards 

Open industry standards that support collaborative information management and data portability are the foundation of trust in construction. They go beyond local certifications, emphasizing global compliance to facilitate cross-border collaboration. In today’s interconnected world of capital project delivery, adherence to international standards is no longer optional; it is a prerequisite for doing business. 

Amongst our customers, we’ve observed that risk officers and compliance teams prioritize certifications when evaluating suppliers and partners. Our clients demand that we—and by extension, our suppliers—maintain the same high level of accreditation. This "full chain of supply risk management" ensures security and compliance cascade throughout the project lifecycle. 

Investing in these standards and certifications and the systems that support them comes at a cost, but it is essential. Just as no one would buy a car without seatbelts and airbags, major infrastructure projects cannot afford to neglect security and compliance. Choosing software solutions designed with security in mind is vital for mitigating risks and safeguarding sensitive data. 

Looking Ahead 

As the construction industry adapts to these emerging trends in 2025 and beyond, organizations must embrace innovation with caution and responsibility. Leveraging AI while protecting data, addressing geopolitical risks with robust security measures, and upholding the highest industry standards will be key to success.