Procurement is the beating heart of construction. But for many UK organisations, it still runs on spreadsheets, siloed systems, and countless phone calls. And that inefficiency comes at a price. Research reported by PBC Today shows construction projects in the UK run, on average, 46 percent over budget, with procurement and supply chain inefficiencies playing a major role.  Meanwhile, a study commissioned by procurement software provider Ivalua found that UK procurement professionals spend nearly a third of their working hours on manual processes. A new wave of AI-powered digital tools, aligned with the principles of Procurement 5.0 (a term suggested by McKinsey), is starting to change this landscape. Intelligent document processing, demand forecasting, smart supplier evaluation, and real-time tracking are already helping teams work faster and with more certainty.  One of the most exciting developments is the use of optical character recognition (OCR) and large language models (LLMs) to “read” engineering drawings and blueprints, extracting specifications and pushing them directly into procurement workflows. Add AI agents that can manage orders, chase suppliers, and flag risks instantly, and the result is a smarter, leaner, more resilient supply chain.  The future of procurement in UK construction isn’t decades away — it’s happening now. Five Procurement Challenges Construction is Facing Today Before we look at how AI and Procurement 5.0 can transform your organisation, it’s worth taking stock of the obstacles that UK construction leaders are up against. 1. Fragmented supplier visibility. Many firms manage hundreds of suppliers with no single, consistent record of performance, compliance, or pricing. This can lead to duplication, missed opportunities, and a lack of leverage when negotiating. 2. Budget overruns. According to PBC Today, UK construction projects overshoot budgets by an average of 46 percent, with supply chain inefficiencies playing a major role. 3. Slow decision cycles. Procurement decisions can take weeks when project deadlines demand hours, largely because data is scattered across systems or trapped in paper documents. 4. Compliance pressures. New sustainability regulations and modern slavery legislation place additional reporting requirements on procurement teams, increasing admin workloads. 5. Manual processes. The Ivalua study found that procurement professionals spend around 31 percent of their time on repetitive, non-strategic tasks. That’s valuable labour that could be redirected towards supplier innovation and risk management. These challenges are more than operational headaches — they directly affect margins, project delivery, and a company’s ability to compete. Business Benefits of AI-powered Procurement Tools  For all the excitement about new technology, most construction leaders ultimately want to know one thing: will it deliver measurable returns? Early adopters of AI-powered procurement tools, in line with Procurement 5.0 thinking, are already seeing results that translate directly to the bottom line. Among them are: Shorter cycle times Research from McKinsey shows AI-enhanced procurement can reduce inventory by 20 to 30 percent, logistics costs by 5 to 20 percent, and procurement spend by 5 to 15 percent, meaning critical materials arrive sooner and projects avoid costly delays. Cost savings According to Accenture, organisations implementing AI in procurement typically reduce direct material costs by 5 to 10 percent, driven by better demand forecasting and supplier competition. Fewer compliance breaches Automated risk checks and document analysis have helped some UK firms cut contract compliance issues by over 25 percent, as reported in Supply Management magazine. Improved staff productivity – The Ivalua study found that automation can reclaim nearly a third of procurement professionals’ time, freeing them to focus on strategic supplier relationships. Efficiency and savings uplift – The Hackett Group finds AI-driven procurement outsourcing delivers a 23 percent average improvement in purchase cost savings and cost avoidance, and an 83 percent overall satisfaction rating for service experience and value. These aren’t abstract benefits. Real companies are already seeing results from their pilots and preparing for wider rollouts. The real question is whether your company will be among the pioneering adopters. 5 Key Steps to Implement AI-powered Procurement in Your Organisation For many business leaders in the construction sector, the main challenge isn’t understanding the value of AI but knowing how to start. The key is to approach AI-powered procurement implementation as a business transformation rather than a tech project. Step 1: Define clear objectives Identify the procurement process pain points you want to address first, such as reducing lead time, improving supplier risk assessment, or speeding up contract reviews. Step 2: Pilot with a valuable use case Start small, for example, by using OCR and LLMs to extract specifications from engineering drawings and feed them into your ordering system.AI consulting experts can help you scope, test, and refine your pilot so it aligns with your business goals. Step 3: Integrate with the existing system Ensure AI tools can be connected with your enterprise resource planning (ERP) or procurement management platforms, avoiding duplicate data entry. Step 4: Upskill your team Provide targeted training so staff can interpret the AI solution output, adjust forecasting, and manage AI agents effectively. Step 5: Measure the success and iterate Set measurable KPIs such as cycle time reduction or supplier performance improvements, track results, and scale the AI use once its value is proven. By treating AI as a business goals driver, rather than an innovative add-on, you create the conditions for sustained efficiency gains and competitive advantage for your organisation. Future Outlook: What’s Next for Construction Procurement? In the next few years we will see construction procurement move from reactive buying to proactive, data-led decision-making. Several trends are already taking shape: Trend 1: AI agents with multi-role capabilities Beyond order management, these systems will handle supplier onboarding, performance tracking, and early risk detection without human prompting. Trend 2: Integration of digital twins Connecting procurement platforms with project digital twins will allow teams to model material needs in real time, adjusting orders dynamically as designs or schedules change. Trend 3: Blockchain for contract transparency Distributed ledgers can record supplier agreements and transactions securely, reducing disputes and enabling faster verification of compliance. Trend 4: Sustainability metrics in procurement Environmental performance data will increasingly be built

Technology has already changed our lives many times, and it’s continuing to do so. From sustainability to personalized suggestions, from automated customer service to supply chain logistics, everything we do is easier thanks to someone who invented the right technology and its application. Many platforms are already experimenting with advanced personalization systems; if you want to check out the latest offers, click here to see more promotions related to online gaming, a sector that is experimenting a lot with technology, especially with AI.  Every industry’s usage of artificial intelligence There was a time when AI sounded like science fiction. Today, it’s embedded in everyday life. AI-powered tools assist doctors with diagnoses, detect anomalies in medical images, and even predict patient risk factors before symptoms appear, becoming precious in healthcare. The construction industry is heavily experimenting and embracing AI to anticipate hazards and streamline project workflows. AI is also accelerating design and creativity. In architecture, the Royal Institute of British Architects (RIBA) reports that usage of AI has surged from 41% in 2024 to 59% in 2025. With many people worrying about artificial intelligence robbing creatives of their jobs, the right application is a precious support. Scalable, connected and efficient with Cloud Computing There isn’t a single large business that doesn’t operate on cloud nowadays. From banking to entertainment, from remote education to retail and online shopping, everything happens on cloud computing. This means that companies don’t need their own data centers to process big data and maintain smooth operations. Maybe you don’t even know it, but every time you complete a task online without a lag or a problem, the cloud is involved. VR / AR: immersion meets practical application VR and AR are redefining forces in training, planning, and remote collaboration. AR helps construction companies and architects overlay their blueprints directly onto the real site, making changes easier and helping customers understand how their home will look like before it even exists. There are many examples of companies that use reality capture and 3D visualization tools, IoT integration, and AI to streamline operations—and their results point to improved productivity and reduced risk for workers. This isn’t just futuristic—it’s becoming best practice in many industries. Fashion, interior design, and even travelling are being changed forever. Other applications in key sectors of our everyday lives In education and continuous learning, AI understands every student’s needs and tailor a personalized learning journey, while VR transports students inside historical moments or complex simulations, turning theoretical information into hands-on experience. Retail and Marketing are also heavily influenced by these technologies. Every user receives a custom recommendation for their next purchase, and they can even try on clothes or see how the new sofa will look like in their living room through AR. Advanced technologies are revolutioning healthcare and medicine too. Beyond diagnostics, VR is being used to manage pain, train surgeons in immersive environments, and conduct remote therapy sessions under various simulated conditions. Finally, this progress is key in finance. Through the cloud users and companies are capable of secure, rapid data sharing, while AI detects fraudulent patterns in real-time. The future will be challenging, but we look forward Like many other technological innovations, AI, AR, VR and cloud computing pose amazing opportunities and challenging scenarios alike. Industries must invest in training teams to operate and manage these platforms effectively—not just adopt them. At the same time, institutions need to create clear and safe protocols for the companies’ and the users’ protection. But as seen in the increasing rate of AI adoption across architecture and construction, professionals are starting to lean into this change, not shy away from it.

NBS, powered by Hubexo, has launched its Digital Construction Survey, now in its 13th year, with a fresh focus on the technologies shaping the future of the industry. This year’s survey invites professionals across the built environment to share their insights on digital transformation and attitudes towards the growing role of artificial intelligence (AI) in construction. For over a decade, NBS has tracked the adoption of Building Information Modelling (BIM) and other digital technologies through its industry-leading survey. The 2025 edition broadens its scope, offering a comprehensive view of digital transformation trends while providing the first in-depth look at AI’s emerging impact on design, specification, and construction practices. The survey is open to all professionals across the built environment, including designers, specifiers, manufacturers, contractors, and is the most extensive of its kind in the sector. The findings help shape industry understanding of current trends and inform the next steps in digital evolution. New this year are questions dedicated to AI adoption, exploring just how artificial intelligence is being used today and what its future potential might be. Dr Stephen Hamil Innovation Director at Hubexo (Global), said: “Digital transformation continues to reshape the construction industry at an accelerating pace. With BIM now firmly established in processes, we’re seeing new technologies like artificial intelligence begin to revolutionise how we design, specify, and build. This year’s survey will provide valuable benchmark data on AI adoption rates, implementation challenges, and emerging opportunities, helping the industry navigate its next chapter of innovation.” Why take part? For every completed response, NBS will donate £1 to the charity Crash, which uses construction expertise to help homeless charities and hospices with vital construction projects. The survey should only take 10-15 minutes to complete.  A pre-release report is sent to all participants, so those taking part will be among the first to access the findings. Take the survey: https://comms.thenbs.com/l/757813/2025-07-09/49pyjv Building, Design & Construction Magazine | The Choice of Industry Professionals

Today, Siemens Smart Infrastructure announced a collaboration agreement with  Microsoft to transform access to Internet of Things (IoT) data for buildings. The  collaboration will enable interoperability between Siemens’ digital building platform,  Building X, and Microsoft Azure IoT Operations enabled by Azure Arc. Azure IoT  Operations, a component of this adaptive cloud approach, provides tools and infrastructure to connect edge devices while integrating data, enabling organizations to optimize their operations and utilize the potential of their IoT environments.    The interoperability of Building X and Azure IoT Operations is making IoT-based  data more accessible for large enterprise customers across commercial buildings,  data centers, and higher education facilities and provides them with the necessary  information to enhance sustainability and operations. It enables automatic  onboarding and monitoring by bringing datapoints such as temperature, pressure, or indoor air quality to the cloud, for assets like heating, ventilation and air conditioning  (HVAC) systems, valves, and actuators. The solution will even allow customers to  develop their own in-house use cases such as energy monitoring and space  optimization.  Building, Design & Construction Magazine | The Choice of Industry Professionals

Reds10, a leader in industrialised construction, has unveiled a new senior leadership structure to drive the next phase of its ambitious growth strategy, targeting £500m in turnover and accelerating the integration of advanced technologies across the business. At the heart of this evolution is the promotion of three senior leaders, Phil Cook, Joe Shepherd and Ryan Geldard to Managing Directors of their respective divisions. Together they will lead the delivery of Reds10’s strategy to revolutionise construction across Defence, Public Sector and Offsite Manufacture. They will be supported by a strong and experienced leadership team. Scott Laird takes on the newly created role of AI & Technical Director, while Uthira Balachandar continues in her role as Design Director. David Newey and James Bateman remain in their positions as Construction Directors, and Stephanie Mehra continues as Finance Director. This blend of newly promoted and established leaders will drive Reds10’s mission to industrialise construction, embed AI across its operations, and deliver exceptional value to clients. As part of the changes, Chief Executive Matt Bennion will assume a new role at Reds10’s sister company, Thrive-AI after six years in his current role. Matt will focus on accelerating growth at the smart building technology business. Thrive-AI applies machine learning to help clients operate their buildings more efficiently, improve user experience, reduce energy consumption, save money, eliminate redundancy in design and optimise the lifespan of critical assets. Founder and Chairman, Paul Ruddick will assume day to day leadership of the Reds10 business, working closely with the leadership team to scale operations and deepen Reds10’s technological capabilities. Paul Ruddick, Reds10 Founder and Chairman said: ““Following four years of strong growth, we are moving to the next phase of our strategy focused on advancing technologies to fully industrialise our design, production and construction processes and integrate AI across the business. As part of our plan, Matt Bennion is taking on the leadership of Thrive-AI to accelerate its development and growth, while a new generation of leaders takes the helm at Reds10. We thank Matt for his outstanding contribution to date, and we are excited to move forward on our mission to modernise construction, driving up productivity, quality, and sustainability and delivering exceptional value to clients.” Matt Bennion, Reds10 Chief Executive, said: “I am delighted to be able to hand the baton on to the new leadership team.It has been a huge privilege to have worked with them and led such a talented Reds10 team over the past six years. These promotions put Reds10 on a firm footing for the next stage of its development and allow me to hand over my CEO responsibilities, safe in the knowledge that the business will continue to go from strength to strength. I’m excited to be spending more time developing and growing our sister company Thrive-AI, our intelligent building platform that puts end users, operators and asset owners in control of their building, carbon footprint and operating costs. It’s a great business and gives Thrive-AI and Reds10 the opportunity to transform the use and operation of buildings for our customers.” The changes come after Reds10 announced its fourth consecutive year of growth for the year ended 31 March 2024, with revenue rising by 70% YoY to £142.5m. Reds10 designs and builds high-quality sustainable buildings for the public sector, with a particular focus on defence, education, health, justice, accommodation and social housing.   The business has a secured pipeline of over £300m of work and turnover is forecast to rise to £160m in the current financial year. Most recently, Reds10 was named by the Defence Infrastructure Organisation (DIO) as one of five construction companies appointed to a new alliance to build Single Living Accommodation (SLA) for the Armed Forces.  Reds10 has set out an ambitious plan to grow its revenue and is targeting an expansion into the healthcare sector, as well as the affordable housing and temporary accommodation sectors, providing high quality sustainable homes for local authorities to help them tackle the housing crisis in their communities. Reds10 manufactures all its buildings off-site and its advancing construction facility in Driffield, East Yorkshire, where it has five factories totalling 300,000 sq ft with the current capacity to produce 4,000 units per year. Following a process of industrialisation this capacity will increase to production of 12,000 units per year.  Building, Design & Construction Magazine | The Choice of Industry Professionals

Builders’ merchants and construction suppliers are accelerating investment in AI, as they seek to modernise operations and stay competitive, according to new research. The study by eCommerce agency PushON, found that nearly half of businesses in the sector (49%) now see the rise of AI and automation as the most significant trend shaping their digital strategies, ahead of platform upgrades and product information management. Partnering with an Amazon full service agency like beBOLD Digital can help brands capitalize on these trends by offering tailored automation, data-driven insights, and end-to-end support across the Amazon marketplace. The report, Building the Future: The Evolution of Construction eCommerce, reveals a sharp uptick in the use of AI to drive personalisation, forecasting and customer experience improvements. Nearly two-thirds of firms surveyed said they were already using AI to offer personalised recommendations to customers, with plans to expand further. Inventory forecasting and stock management are also undergoing transformation, with 40% of companies deploying AI to better predict demand and optimise supply chains. AI’s impact extends into customer service and marketing operations. Almost half of businesses (48%) report using AI chatbots to enhance responsiveness and support, while 46% are automating their marketing efforts to streamline operations. Enhanced site search functionality, using AI to better match customer queries with relevant products, has also emerged as a key investment area, with 49% of businesses investing in smarter search tools to drive better online engagement and conversion rates. Sam Rutley, managing director of PushON, said: “Our research shows that AI adoption is accelerating rapidly in the construction supply sector and is reshaping the future of digital commerce. Builders’ merchants and suppliers that embrace these technologies now will be better positioned to meet changing customer expectations and drive future growth, while those who delay risk falling behind.” Building, Design & Construction Magazine | The Choice of Industry Professionals

The partnership will enhance urban connectivity across three major cities in the UK this year, with Oxford as the first city of deployment, enabled by Dense Air’s neutral host platform Signify, the world leader in lighting, has partnered with Cornerstone, the UK’s leading mobile infrastructure services company, and Dense Air, a leading neutral host platform-as-a-service provider, to transform street lighting infrastructure into a platform of scalable multi-operator connectivity. This first-of-its-kind partnership will launch in Oxford, creating a shared network for mobile operators that leverage existing light points to seamlessly expand wireless coverage and capacity, enabling instant connectivity in dense urban areas. Using street lighting, Signify’s BrightSites solution provides connectivity for 4G and 5G, IoT applications such as CCTV cameras, Internet services via Wi-Fi, and other high bandwidth applications, eliminating the need for additional infrastructure and resetting the economic model on how mobile operators deliver service.  Dense Air’s multi-operator cellShare® platform enables Cornerstone to provide neutral host services to UK mobile network operators, adhering to Joint Operator Technical Specifications (JOTS). The technology optimizes network capacity by leveraging small cell technology specifically designed for public spaces. Khalid Aziz, SVP and Managing Director of BrightSites by Signify: “By harnessing the power of 5G and IoT through our lighting technology, we not only illuminate streets but also pave the way for a more connected and sustainable future. In partnership with Cornerstone and Dense Air, Signify will enable our partners to tap into existing lighting infrastructure as a wireless network, bringing a new era of smart city solutions.” Martin Reeves, Chief Executive of Oxfordshire County Council, said: “These new small cells offer an excellent connectivity solution, and it’s exciting to see a sustainable option that works in both urban and rural areas. Enhanced digital infrastructure supports the council’s strategic objectives by providing environmental, economic, and social benefits. Small cells, being only the size of a shoebox, minimise street clutter and seamlessly integrate into our surroundings.” Miranda van Gestel, Chief Customer Officer at Cornerstone: “At Cornerstone, we are leading the way in transforming the UK’s digital landscape with innovative solutions such as our Small Cell Coverage Solution. By integrating state-of-the-art technology into existing infrastructure, we’re not only addressing the growing demand for seamless connectivity but also empowering local authorities, MNOs, and communities to thrive in the digital age. Our approach ensures faster, more sustainable deployments that enhance everyday life, drive economic growth, and set the standard for smart city innovation.” As the world leader in lighting, Signify is well-placed to transform existing light points into city-wide wireless network grids, enabling seamless connectivity at scale. Starting in Oxford, the project will later deploy across three major cities in 2025, setting the foundation for future expansion and innovation across the UK in the field of smart city infrastructure. Learn more about BrightSites by Signify at https://www.signify.com/global/innovation/brightsites. Building, Design & Construction Magazine | The Choice of Industry Professionals