Construction Disputes in 2025: The Year of Generative AI

Construction disputes skyrocketed in the wake of the COVID-19 pandemic, with the average value of disputes in North America rising by 42 percent from 2021 to 2022.

There hasn’t been much slowdown: in mid-2023, a survey of construction lawyers found that 70 percent of the organizations they represented expected an increase in the volume of their disputes over the next two years. Labor shortages, uncertain market conditions, rising material costs, supply chain issues, and potential regulatory shifts under a second Trump administration will likely exacerbate these issues in 2025.

Fortunately, industry stakeholders can manage disputes more efficiently and effectively using new technologies. In fact, 2025 is poised to be the first full year of applied generative artificial intelligence (AI) use in construction dispute cases, marking a significant turning point in how the industry handles complex disputes.

Saving Time and Money with Generative AI

Construction disputes have become increasingly document-intensive over the past decade. A typical dispute now involves reviewing thousands of daily reports, emails, meeting minutes, and change orders—often ten times the volume seen just five years ago. This explosion in documentation stems from the industry’s digital transformation, with project management software, emails, and mobile devices generating vast amounts of searchable data. Add in the growing complexity of modern construction projects and stricter documentation requirements, and the need for more efficient document analysis becomes critical.

Fortunately, advances in AI technology can help meet this challenge. New large language model (LLM) releases mean that today’s generative AI capabilities outpace what could have been done even six months ago. These advances are particularly valuable for construction disputes, where AI can quickly process and connect information across multiple document types—from technical specifications to informal site communications. Based on BRG analysis, generative AI systems developed and used by experts can now save up to 85 percent in costs and time for specific repetitive tasks, transforming how firms approach document review and analysis.

The construction sector is poised to realize these benefits in 2025 and beyond. For example, a major construction dispute involving 100,000 project emails demonstrates the dramatic impact recent innovations can have. Traditional manual review of these emails would require multiple attorneys working for seven weeks at a cost of approximately $216,000. With generative AI-enhanced analysis, the same review—including AI processing and expert analysis—can be completed in just four business days at a cost of around $27,000.

The technology also improves accuracy in meaningful ways. It can spot patterns—like recurring weather delays or material shortages—across thousands of daily reports using project-specific language. It applies the same standards consistently throughout documents and can track multiple issues at once (e.g., delays, equipment problems, design changes). By connecting information across daily reports, emails, and claims, it creates a clearer picture of what happened and when.

Leading firms are deploying sophisticated AI systems that go beyond basic document review. These include:

• specialized AI agents for analyzing daily reports
• email analysis systems that can process communications through case-specific parameters
• intelligent tools that can derive insights from case filings to generate focused summaries of key issues

Such advances represent a new frontier in construction dispute resolution, combining technological innovation with practical application.

Knowledge of Construction and AI Technology Is Key

The construction industry is at a pivotal moment, with generative AI development accelerating rapidly and AI agents becoming more specialized and capable of handling increasingly complex tasks. As developers continue to push the boundaries of what is possible with new LLMs, we can expect AI agents to handle even larger document sets and more sophisticated analyses.

Success with generative AI requires a deep understanding of both construction and AI agent processes. The future is not about replacing human expertise with AI, but rather augmenting human capabilities with powerful analytical tools. This integration of industry experts with custom AI agent development will drive construction dispute resolution in 2025.

The year of generative AI is here.