Future-Proofing AEC Leadership: Six Skills for the Next Five Years in an AI-Driven World
Recently, at our latest Minds & Machines Symposium in Chicago (July 2024), Ying Liu, Director of Strategy at Zweig Group, asked the audience, “Because of AI, what skills will AEC firm leaders need to have in five years that they can start working on today?”
I participated in a roundtable discussion with several AEC industry leaders, and this is the summary of what they proposed. I thought this was so insightful and definitely worth sharing. As always, your comments are appreciated.
As our AEC industry runs the marathon* toward an AI-dominated future, the skill set required for firm leaders is evolving at an unprecedented pace. The next five years will bring challenges and opportunities that demand a radical shift in leadership approaches. The integration of AI into everyday business processes will not only redefine how firms operate but also who leads them. Leaders who can adapt, innovate, and inspire will be those who thrive in this brave new world. To prepare, today’s leaders must cultivate several essential skills that will become non-negotiable in the near future.
1. Openness to Difficult Conversations
One of the most significant challenges AI brings to the AEC industry is the disruption of established norms. From automating tasks once thought to be the sole domain of human expertise to introducing ethical quandaries around data use and privacy, AI will force firm leaders to navigate uncharted waters. This environment requires a leader who is not only comfortable with difficult conversations but seeks them out.
Difficult conversations are no longer just about navigating interpersonal conflicts—they now encompass discussions about AI ethics, job displacement, and the equitable distribution of technological benefits. Leaders who can engage in these conversations transparently and constructively will build trust with their teams and stakeholders, creating a culture where innovation can flourish without fear of retribution or resistance.
2. Understanding New Levels of Risk and Mitigation
AI’s influence on risk management is profound. On one hand, AI can enhance risk assessment by analyzing vast datasets to predict potential issues before they arise. On the other, it introduces new risks—such as algorithmic bias, cybersecurity threats, and the unpredictability of autonomous systems—that leaders must be prepared to address.
AEC leaders must develop a keen understanding of these new risks and how to mitigate them. This involves staying informed about the latest advancements in AI technology, engaging with experts who can provide insights into emerging threats, and developing robust strategies to protect both the firm and its clients. Proactively addressing AI-related risks will not only safeguard the firm’s reputation but also position it as a leader in responsible innovation.
3. Mentorship and Talent Development
As AI transforms the AEC landscape, the role of mentorship becomes more critical than ever. Leaders must be committed to nurturing the next generation of talent, equipping them with the skills and knowledge they need to succeed in an AI-driven world. This goes beyond technical training; it involves fostering a growth mindset, encouraging creative problem-solving, and instilling a sense of ethical responsibility.
Mentorship in the age of AI also means preparing younger professionals for roles that do not yet exist. Leaders must help their teams navigate ambiguity and uncertainty, guiding them through the complexities of integrating AI into their work. By investing in mentorship, leaders ensure that their firms remain competitive and innovative, with a workforce ready to tackle the challenges of the future.
4. Focus on Flexibility and Change Management
The pace of technological change right now is unimaginable. AEC leaders must be flexible, adaptable, and capable of leading their firms through constant change, both seen and unseen, preparing for a future that we simply can no longer predict. This requires a deep understanding of change management principles and the ability to implement them effectively.
Leaders must be prepared to pivot quickly in response to new developments, whether it is adopting new AI tools, adjusting business models, or rethinking project delivery methods. Flexibility also means being open to experimenting with new approaches and learning from failures. By fostering a culture that embraces change, leaders can ensure their firms remain resilient and relevant in a rapidly evolving industry.
5. Cultivating Creativity and True Innovation
AI has the potential to unlock unprecedented levels of creativity and innovation in the AEC industry. However, realizing this potential requires leaders who can think outside the box and encourage their teams to do the same. True innovation goes beyond incremental improvements; it involves reimagining how projects are designed, managed, and delivered.
Leaders must be willing to challenge conventional wisdom and take calculated risks to explore new possibilities. This might mean experimenting with AI-driven design tools, exploring new materials and construction methods, or rethinking the entire project lifecycle. By fostering a culture of creativity, leaders can position their firms competively, setting the stage for long-term success.
6. Transition of Leadership and Trust in the Younger Generation
As the industry evolves, so too must its leadership. The coming years will see a significant transition as older leaders retire and younger professionals step into leadership roles. This transition presents an opportunity for firms to infuse fresh perspectives and innovative ideas into their leadership teams.
However, successful leadership transition requires trust. Older leaders must be willing to empower the next generation, providing them with the support and autonomy they need to lead effectively, especially in a business environment that looks nothing like it did even 10 years ago. This also means recognizing that younger leaders may approach problems differently, particularly with their deepening understanding of AI and digital tools. By fostering intergenerational trust, firms can ensure a seamless leadership transition and continued growth.
Embracing a Techno-Optimist Philosophy
Looking ahead, AEC leaders must adopt a techno-optimist philosophy. This mindset embraces the potential of AI and other technologies to drive positive change, rather than viewing them as threats. By seeing AI as a tool for enhancing human capabilities rather than replacing them, leaders can inspire their teams to leverage technology for the greater good.
Implementing Roles of Human Oversight
Despite the power of AI, human oversight remains essential. Leaders must establish roles that ensure AI is used ethically and responsibly, with humans in the loop to guide decision-making. This approach will help mitigate risks associated with AI, such as biases in algorithms or unintended consequences, and maintain the trust of clients and the public.
Fostering a Community That Encourages Experimentation
Finally, AEC leaders must foster a community that encourages experimentation. In a rapidly changing world, firms must be willing to try new things, learn from failures, and iterate quickly. By creating an environment where experimentation is valued, leaders can drive continuous improvement and innovation, keeping their firms at the forefront of the industry.
Building a Culture of Value
By embracing a techno-optimist philosophy, implementing human oversight, and fostering a culture of experimentation, AEC leaders can drive their firms toward a Culture of Value. This shift means moving away from traditional time-and-materials or hourly rate models and instead focusing on charging for the unique value that human expertise and insight bring to the table. As AI increasingly handles tasks faster and more effectively, the true worth of human input lies in the strategic, creative, and ethical dimensions that machines cannot replicate.
In this new era, the true leaders will be those who recognize that while AI can accelerate progress, it is human wisdom, creativity, and vision that will define the ultimate value of every project and elevate the entire industry.
*I like to visualize AI as a marathon in the shape of a mobius strip. You don’t know the route, and that route is always changing. You don’t know your pace. You don’t know if other runners are ahead of you or behind you. Sometimes you feel upside down. Sometimes you feel back at square one. You most likely are blindfolded. And there is no finish line. As tiresome as this sounds, you cannot sit the race out. If you would like AI training or consulting for your firm, I can help you get started and moving forward. Reach out to me at kkautz@zweiggroup.com.
