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ARTICLE · 03 NOVEMBER 2026

Addressing The AI Liability Gap In Construction Contracts

Artificial intelligence is increasingly being used to perform tasks related to construction projects, including structural calculations, cost estimates, schedules, code compliance checks, and various other functions.

United StatesReal Estate and Construction

Artificial intelligence is increasingly being used to perform tasks related to construction projects, including structural calculations, cost estimates, schedules, code compliance checks, and various other functions. Yet none of the industry’s standard contract templates contain provisions prescribing responsible use of AI or allocating potential liability that could result from its use. In addition, many property and casualty insurers have issued standardized AI exclusions that became effective in policies renewing on or after January 1, 2026. Therefore, it is advisable to include language in construction contracts that targets the use of artificial intelligence.

It is critical for owners, contractors, subcontractors, and design professionals to anticipate potential risks associated with the use of AI and allocate those risks appropriately. The following examples of construction contract clauses that address AI issues merit consideration:

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