{"id":5354,"date":"2025-05-16T16:55:52","date_gmt":"2025-05-16T16:55:52","guid":{"rendered":"https:\/\/www.fwhtlaw.com\/blog\/?p=5354"},"modified":"2025-05-19T15:00:36","modified_gmt":"2025-05-19T15:00:36","slug":"legal-risks-of-the-use-of-ai-in-the-design-build-process","status":"publish","type":"post","link":"https:\/\/www.fwhtlaw.com\/blog\/2025\/05\/16\/legal-risks-of-the-use-of-ai-in-the-design-build-process\/","title":{"rendered":"Legal Risks of the Use of AI in the Design-Build Process"},"content":{"rendered":"
By Jesse R. Orman & Elise R. Radaj<\/h6>\n
Jesse Orman and Elise Radaj are members of the firm\u2019s Construction Law Department. Jesse can be reached at 612.359.7637 or jorman@fwhtlaw.com<\/a>. Elise can be reached at 612.359.7657 or eradaj@fwhtlaw.com<\/a>.<\/h6>\n

1. The Rise of the Design-Build Project Delivery<\/u><\/strong><\/p>\n

The prevalence of design-build as a project delivery method has rapidly increased over the past decade.\u00a0 According to several recent surveys by consulting firm FMI and the Design-Build Institute of America (DBIA), design-build is projected to comprise nearly half of all construction spending in the next year.\u00a0 The rapid growth of design-build as a more flexible, streamlined, and efficient project delivery method coincides with the rise of AI, and the promise of even greater efficiency and optimization.\u00a0 This article examines the legal risks associated with the use of AI in the design-build project delivery method.<\/p>\n

2. Risks Associated with the Use of AI<\/u><\/strong><\/p>\n

Construction firms utilizing design-build methodology need to consider the risks associated with the use of AI.\u00a0 In particular, designers at construction firms need to recognize potential pitfalls with AI before adopting the use of AI in the design and construction process.\u00a0 The risks include, but are not limited to, the following:<\/p>\n

a. Professional Responsibility<\/u><\/p>\n

One of the principal outstanding issues with respect to AI is whether the use of AI will be required to meet the applicable standard of care for designers.\u00a0 There does not appear to be Minnesota case law on this issue as of the date of this publication.\u00a0 Design professionals should monitor current trends in their respective fields to help inform what uses of AI, if any, are pertinent to meeting the standard of care.<\/p>\n

The American Institute of Architects published \u201cThe Architect\u2019s Journey to Specification: Artificial Intelligence Adoption in Architecture Firms: Opportunities & Risks\u201d in 2024.\u00a0 That study found that the majority of architects responding to the survey expect to use AI more in their day-to-day practice moving forward and approximately half think mastering AI will be important to their careers.\u00a0 Thus, within the architectural realm, this study indicates a trend towards the use of AI.<\/p>\n

At least one industry group has published a statement on the use of AI by designers.\u00a0 The American Society of Civil Engineers issued Policy Statement 573 on July 18, 2024 regarding the use of AI.\u00a0 The Policy Statement provides, in part, that \u201cAI has the potential to enhance efficiency, innovation, and sustainability in civil engineering practices. … However, AI cannot be held accountable, nor can it replace the training, experience, and (judgment) of a professional engineer in the planning, designing, building, and operation of civil engineering projects and the protection of the public health, safety, and welfare.\u201d\u00a0 The ASCE has, therefore, signaled that AI is a helpful tool to supplement, but not replace, the work of a professional engineer.<\/p>\n

Professional rules for design professionals can vary depending on practice area or geography.\u00a0 Some rules require designers to consider capabilities and limitations of emerging technologies.\u00a0 These rules imply that design professionals should at least consider how, if at all, AI can or should be utilized.\u00a0 Ultimately, regardless whether AI is used, design professionals still need to meet their obligations to act with reasonable care and competence in performing their work.<\/p>\n

b. Security \/ Client Confidentiality<\/u><\/p>\n

Client confidentiality and data security are core concerns when using AI.\u00a0 This includes concerns about work product or designs being captured by generative AI.\u00a0 Understanding the difference between open-source and closed systems is key to maintaining confidentiality over data.\u00a0 For example, confidential client information or work product put into an open-source system will not have any safeguards on who can use the data or how the data is used.\u00a0 As a best practice, designers should not put any confidential client data or secure information into an AI platform without first understanding what confidentiality safeguards are in place with the AI system being utilized.<\/p>\n

c. Hallucinations and Inaccuracies<\/u><\/p>\n

A hallucination is a response from AI that includes false or misleading information.\u00a0 A well-known example of a hallucination in the legal field comes from an attorney in New York who relied on ChatGPT to assist with research for a legal brief.\u00a0 ChatGPT simply made up multiple citations to cases, which the attorney cited in the legal brief.\u00a0 The attorney only discovered the cases did not exist after submitting the brief to the court.\u00a0 The likelihood of similar hallucinations in the design field \u2013 building code provisions, for example, or other applicable standards \u2013 should not be underestimated.\u00a0 Of course the frequency of hallucinations varies \u2013 some studies estimate hallucinations occur only one to three percent of the time.\u00a0 Other studies indicate hallucinations occur as often as 27% of the time.\u00a0 Regardless, given the well-known potential for hallucinations, checking information provided by AI for accuracy is crucial.<\/p>\n

d. Inherent Bias<\/u><\/p>\n

The use of AI does not eliminate unintentional or inherent bias.\u00a0 Unintentional bias in AI data can arise out of the data sets used to generate the content and algorithms.\u00a0 For example, hiring algorithms can inadvertently favor a certain demographic.\u00a0 Amazon experienced this issue with its (now scrapped) hiring algorithm that favored men\u2019s resumes over women\u2019s resumes.\u00a0 Errors can also arise from improper data sets being used \u2013 if data set is outdated, information generated from AI will also be outdated.\u00a0 One way to address inherent bias in the use of AI is to check the data sets used to generate the AI content to determine whether the underlying data is itself flawed.\u00a0 For designers, it is important to ensure AI algorithms are not over emphasizing certain variables or factors over others in analysis or interpretation of data.<\/p>\n

e. Intellectual Property<\/u><\/p>\n

The use of AI poses both ownership and use questions.\u00a0 Currently, there is no ownership over materials that are generated by AI \u2013 these materials are considered to be in the public domain.\u00a0 This can complicate designers\u2019 claims of ownership where AI is used to generate designs.\u00a0 However, human involvement in the design process with editing, revising, or modifying AI generated material can help address those concerns.\u00a0 In addition, as recently decided in Thomson Reuters Enterprise Centre GMBH and West Publishing Corp. v. Ross Intelligence Inc.<\/em> (D. Del. Feb. 11, 2025), the use of generative AI has the potential to infringe copyright if copyrighted materials are used improperly by an AI platform.<\/p>\n

3. Implementing the Use of AI<\/u><\/strong><\/p>\n

Understanding the risks associated with the use of AI helps inform how AI can be implemented.\u00a0 Design-build firms utilizing AI need to have policies and procedures in place regarding the use of AI.\u00a0 In particular, designers should also clarify to whom the policies and procedures apply, including whether those policies and procedures flow down to subconsultants or other lower-tiers on a project.\u00a0 Given the rapidly changing landscape of AI, it is also imperative to stay informed of current laws, regulations, and policies relating to the use of AI and to update policies and procedures accordingly.<\/p>\n

Ultimately, ensuring human oversight with the use of AI is key.\u00a0 AI is not a replacement for professional judgment and knowledge.\u00a0 The old adage of trust, but verify, applies to the use of AI.<\/p>\n

Announcements<\/u><\/strong><\/p>\n

Robert L. Smith<\/a><\/strong>\u00a0is speaking at the upcoming National Business Insitutes\u2019s<\/strong> seminar \u201cConstructing Clarity: Legal Paths When Change Orders Are Refused\u201d<\/strong> Friday, May 30th at 12:00 PM Central Time. For more information, including details and how to register, click\u00a0here.<\/a><\/strong><\/p>\n

Fabyanske, Westra, Hart & Thomson, P.A. <\/strong>is pleased to announce the election of its new President and Executive Committee. The following six attorneys now comprise the Fabyanske Executive Committee: Jesse R. Orman<\/a><\/strong> (President), Katie A. Welsch<\/a><\/strong>, Jeffrey W. Jones<\/a>, Matthew T. Collins<\/a><\/strong>, Rory O. Duggan<\/a><\/strong> and Robert L. Smith.<\/a><\/strong><\/p>\n

This discussion is generalized in nature and should not be considered a substitute for professional advice. \u00a9 2025 FWH&T.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

By Jesse R. Orman & Elise R. Radaj Jesse Orman and Elise Radaj are members of the firm\u2019s Construction Law Department. Jesse can be reached at 612.359.7637 or jorman@fwhtlaw.com. Elise can be reached\u2026<\/p>\n","protected":false},"author":8,"featured_media":5359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7,58,46],"tags":[],"class_list":["post-5354","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefing-papers","category-elise-r-radaj","category-jesse-r-orman"],"acf":[],"yoast_head":"\nLegal Risks of the Use of AI in the Design-Build Process - Fabyanske, Westra, Hart & Thomson<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fwhtlaw.com\/blog\/2025\/05\/16\/legal-risks-of-the-use-of-ai-in-the-design-build-process\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Legal Risks of the Use of AI in the Design-Build Process - Fabyanske, Westra, Hart & Thomson\" \/>\n<meta property=\"og:description\" content=\"By Jesse R. Orman & Elise R. Radaj Jesse Orman and Elise Radaj are members of the firm\u2019s Construction Law Department. Jesse can be reached at 612.359.7637 or jorman@fwhtlaw.com. 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