AI in Construction: Dubai Firm Cuts Costs 50% with Smart Tools

AI in Construction: Dubai’s Alec Holdings Embraces Tech While Keeping Human Workers Central

In the bustling world of Dubai’s construction sector, where skyscrapers rise and mega-projects redefine skylines, artificial intelligence (AI) is making its mark. Yet, according to Barry Lewis, chief executive of Alec Holdings, the future won’t see robots fully replacing the humans on site. Instead, AI tools like robot dogs and tech-enabled watches are enhancing efficiency, allowing workers—still donning their hard hats—to focus on what they do best. This balanced approach highlights how AI in construction is transforming operations without eliminating the need for skilled labor.

Alec Holdings, a prominent Dubai-based construction and engineering firm, is at the forefront of this shift. With an impressive portfolio that includes high-profile developments like SeaWorld Abu Dhabi, the Bvlgari Resort hotel in Dubai, One Zabeel, and Dubai Hills Mall, the company is leveraging technology to streamline processes. Lewis emphasizes that while AI offers exciting possibilities, the construction industry’s unique challenges—such as varied project demands and on-site unpredictability—mean people will remain indispensable.

The Rise of AI Adoption in Dubai’s Construction Landscape

Dubai’s construction boom, fueled by ambitious visions like smart cities and sustainable developments, provides fertile ground for AI integration. Alec Holdings is embracing this trend by adopting AI early, not just for flashy innovations but for practical gains in efficiency. “I think you have to be an early adopter of AI. You have to use AI to make it more efficient,” Lewis shared in a recent discussion.

The core benefit lies in tackling the industry’s mundane tasks. Construction often involves repetitive data entry, inventory tracking, and process matching that can bog down teams. Alec is using AI to optimize these systems, eliminating manual entries in areas like stores and data capture. For instance, AI algorithms can automatically match concepts and streamline workflows, reducing errors and saving time.

This approach aligns with broader trends in the Middle East, where governments are investing heavily in digital transformation. In the UAE and Saudi Arabia, initiatives like Vision 2030 are pushing for tech-driven economies, and construction firms like Alec are responding by incorporating AI into daily operations. By automating routine elements, companies can redirect human efforts toward creative problem-solving and complex builds, ultimately boosting project timelines and cost-effectiveness.

Beyond internal processes, AI’s role extends to project management. Tools that analyze data in real-time help forecast delays, optimize resource allocation, and ensure compliance with safety standards. For Alec, this means smoother execution on diverse projects, from luxury resorts to expansive malls, where precision is paramount.

Robot Dogs and Drill Bots: On-Site Tech Assistants in AI-Driven Construction

One of the most visible signs of AI’s presence at Alec’s sites is the deployment of robot dogs. These agile, four-legged machines, equipped with cameras and sensors, patrol construction areas to monitor work progress. They capture footage, assess site conditions, and relay data back to teams, providing a bird’s-eye view without human intervention. This technology not only enhances safety by identifying hazards early but also allows supervisors to focus on oversight rather than constant walkthroughs.

Complementing the robot dogs are drill bots, specialized machines designed for heavy-duty tasks. These bots handle repetitive drilling operations, reducing physical strain on workers and minimizing downtime. In a field where manual labor can lead to fatigue and injuries, such tools represent a smart evolution, blending AI precision with human direction.

Lewis points out that while these technologies grab headlines, their real value is in supporting, not supplanting, the workforce. Robot dogs, for example, don’t make decisions; they gather intelligence that informs human-led strategies. This symbiotic relationship is key to Alec’s philosophy: tech amplifies capabilities, ensuring projects stay on track amid Dubai’s fast-paced development cycle.

In practice, these tools have proven their worth on complex sites. Imagine a sprawling entertainment venue like SeaWorld Abu Dhabi, where coordinating multiple phases requires constant vigilance. Robot dogs help by mapping progress in real-time, flagging bottlenecks before they escalate. As AI hardware becomes more affordable and robust, expect wider adoption across the region, particularly in high-stakes environments like airport expansions and oil and gas facilities.

Modular Construction: Factories Over Fields

Alec’s commitment to efficiency shines through its use of modular construction, a method where building components are prefabricated in controlled factory settings before assembly on-site. This isn’t just a buzzword—it’s a strategic pivot toward higher productivity and sustainability.

In modular approaches, elements like walls, floors, and even entire rooms are manufactured off-site, then transported and fitted together like puzzle pieces. This reduces weather-related delays, cuts waste, and allows for better quality control. Alec employs this technique to juggle multiple commitments, ensuring timely delivery on projects ranging from residential towers to commercial hubs.

The advantages are clear:

• Faster Build Times: Factory production operates 24/7, unaffected by site constraints.
• Cost Savings: Fewer on-site errors mean lower rework expenses.
• Sustainability Boost: Precise manufacturing minimizes material overuse, aligning with green building standards in the UAE.

Lewis highlights how modular construction dovetails with AI. Factories can integrate smart systems for automated assembly, further streamlining output. For example, AI-driven design software optimizes layouts, ensuring components fit seamlessly. This shift is particularly relevant for Dubai’s hospitality sector, where bespoke elements—like custom hotel suites at the Bvlgari Resort—benefit from factory precision without sacrificing uniqueness.

Looking ahead, modular methods could redefine labor dynamics. By moving more work indoors, firms address skilled worker shortages while improving safety. Alec’s experience shows that even intricate features, such as full bathrooms, can be pre-built and delivered ready-to-install, slashing on-site time significantly.

Tracking Productivity: The Role of Tech-Enabled Watches in AI in Construction

To truly harness AI’s potential, understanding workforce efficiency is crucial. Alec addresses this with tech-enabled watches, developed by Dubai-based AI productivity platform Brix. These wearable devices are task-specific, activating sensors tailored to roles like plumbing or electrical work.

On a typical construction site, workers face numerous interruptions: traveling to the job area, sourcing materials, breaks, and logistical waits. Lewis notes that productivity hovers between 35 and 45 percent under these conditions. The watches change that by conducting time-and-motion studies, pinpointing exactly how long tasks take.

Data from Alec reveals striking insights. A plumber wearing the watch is actively productive only about 35 percent of the time on-site. Shift that same work to a factory environment, and productivity jumps to 85 percent. “So, you have to get to a place where you’re doing more and more tasks in a factory-controlled environment,” Lewis explains.

These watches provide granular data:

• Real-Time Monitoring: Track active vs. idle time without invasive oversight.
• Role-Specific Insights: Customize metrics for different trades, from carpenters to welders.
• Benchmarking: Compare site performance against factory standards.

With around 7,000 watches in use and plans to more than double that, Alec is scaling this technology across its operations. It’s not about surveillance; it’s about empowerment. Workers receive feedback on their productivity levels, turning data into motivation.

Addressing Worker Concerns: Incentives Over Intrusion

Adopting monitoring tech raises valid questions about privacy and comfort. Will employees feel like they’re under a microscope? Alec counters this by framing the watches as tools for mutual benefit. “What it does is it gives you access to real-time data. So, we use it to incentivise people … we say to them, this is your productivity level at the moment, if you achieve this [higher] productivity level, then we’ll give you compensation,” Lewis says.

This incentive model fosters buy-in. Workers see direct rewards—bonuses or recognition—for hitting targets, transforming potential resentment into engagement. It’s a people-centric strategy, recognizing that construction thrives on teamwork, not top-down control.

In a diverse workforce like Dubai’s, cultural sensitivity matters. Alec ensures transparent communication, explaining how data protects jobs by making operations leaner. This approach not only boosts morale but also aids retention in an industry facing talent competition.

Broader implications for worker productivity tracking in construction include reduced turnover and better training. By identifying inefficiencies early, firms can offer targeted upskilling, preparing teams for AI-augmented roles. As wearables evolve, integration with AR glasses or mobile apps could provide even richer feedback loops.

Why Full Automation Isn’t on the Horizon for Construction

Despite AI’s advances, Lewis is pragmatic about limitations. A fully robotic future for building? Not likely. “The problem with anything that needs to be robotic, you need to have scale and you need repetition,” he observes. Industries like automotive manufacturing succeed with automation because they produce identical items in massive volumes, justifying hefty investments in custom equipment.

Construction, by contrast, is bespoke. “We don’t build the same thing tomorrow that we build today,” Lewis points out. Each project—whether a themed park or a data center—demands customization, making robotic scalability challenging. Even 3D printing for buildings, while promising, faces hurdles in infrastructure and capital costs. The equipment required is prohibitively expensive for non-repetitive work.

Instead, Alec focuses on hybrid models: humans guiding AI tools. This keeps costs down while leveraging tech where it excels, like in modular factories. The result? A leaner workforce. “If there’s 10,000 people on a project today, in the future … you should have 2,500 people,” Lewis envisions, with off-site production absorbing the bulk.

This perspective resonates industry-wide. While AI handles data and routine tasks, human ingenuity navigates the unforeseen—site surprises, design tweaks, regulatory shifts. In Dubai’s dynamic market, flexibility trumps rigidity.

Alec Holdings: A Powerhouse in Regional Construction

Founded in Dubai, Alec Holdings has grown into a key player, executing projects across the UAE and Saudi Arabia. Its diverse portfolio spans:

• Leisure and Entertainment: Including SeaWorld Abu Dhabi.
• Hospitality: Such as the Bvlgari Resort.
• Residential and Commercial: One Zabeel and Dubai Hills Mall.
• Infrastructure: Airport expansions and oil and gas facilities.
• Retail: High-end shopping destinations.

As of the end of September last year, the company boasted a backlog of Dh32.9 billion in outstanding work, signaling robust demand. New ventures include the first phase of the Stargate data center in Abu Dhabi and the Wynn Resort in Ras Al Khaimah, underscoring Alec’s versatility.

Financially, Alec marked a milestone with its initial public offering on the Dubai Financial Market in October. It raised Dh1.4 billion ($381.2 million), with the offering oversubscribed more than 21 times—a testament to investor confidence. The Investment Corporation of Dubai, the principal investment arm of the Dubai government, remains the largest shareholder after selling one billion ordinary shares, or 20 percent of the company’s share capital.

This capital infusion positions Alec for expansion, particularly in high-growth areas. The UAE and Saudi markets offer “significant” addressable opportunities, Lewis notes, with ample bandwidth in the short and medium term. While open to new regions if clients demand it, the focus stays on core strengths.

Emerging Opportunities: Data Centers, Hospitality, and Beyond

Alec’s optimism stems from sector-specific booms. Data centers are a prime example. As the region cements its status as a digital hub, projects like Stargate highlight the need for specialized infrastructure. AI and cloud computing drive this demand, requiring facilities with advanced cooling, power redundancy, and security—areas where Alec’s engineering expertise shines.

Hospitality and entertainment follow suit. Post-pandemic travel surges, coupled with events like Expo legacies, fuel mega-resorts and attractions. The Wynn Resort exemplifies this, blending luxury with tech-forward designs. Alec’s modular approach accelerates these builds, meeting tight deadlines for tourist influxes.

Other sectors add depth:

• Residential: Sustainable housing amid population growth.
• Commercial: Office spaces evolving with hybrid work.
• Retail: Experiential malls integrating e-commerce.

In Saudi Arabia, giga-projects align with Alec’s capabilities, from NEOM’s futuristic vision to Riyadh’s expansions. Cross-border synergies, like shared supply chains, enhance efficiency.

Challenges persist—supply chain volatility, labor regulations—but Alec’s AI toolkit mitigates them. By optimizing logistics and predicting disruptions, the company stays agile.

The Human Element: Why Hard Hats Endure in AI in Construction

At its heart, construction remains people-centric. Barry Lewis’s vision for Alec underscores this: tech evolves the industry, but humans drive it. From robot-assisted monitoring to incentive-driven productivity, innovations empower workers, not displace them.

As Dubai pushes boundaries—toward net-zero buildings and AI ecosystems—Alec’s model offers a blueprint. Balancing cutting-edge tools with skilled labor ensures resilience in an unpredictable field. The hard hats stay, but they’re smarter, safer, and more efficient than ever.

In this blend of tradition and tech, Alec Holdings isn’t just building structures; it’s constructing a more productive future for construction itself. With a strong backlog, strategic investments, and a clear-eyed view of AI’s role, the company is well-positioned to lead Dubai’s next wave of development.