Three Ways Automation Is Changing the Business of Architecture

If you tune into the conversations that architects and designers are having, automation is a topic that comes up a lot. They all realize that automation is coming, and it’s not optional. Automation is coming to the business of architecture and automation is going to have big impacts on it. To put it bluntly: Everybody's trying to figure out what to do about automation.  

The promise of design automation is that architects will be able to complete the deliverables more quickly. That’s highly valuable to both owners and architecture firms. But what happens to your business model? Here are three areas where automation is changing the business of architecture.  

1. Billing Model Shifts to Value-Based Pricing

One of the things I have found is that many large firms have anticipated this automation. They have dedicated technologists who are implementing custom solutions that improve their productivity.  

They're not charging less even though they're spending fewer hours than before. They’ve been able to move away from time-based pricing and fee models that have defined the architecture industry for more than 100 years. Rather, these firms have moved to value-based pricing.  

Transitioning to a value-based billing model is a big challenge. Architects, particularly midsize and smaller firms that aren’t yet automating major parts of their business, will have to adjust. And investing in new technologies is part of that adjustment. The question then becomes, what parts do I automate first, and what tools should I use? 

2. Design Automation Tools

There are different ways to automate the business. Analysts in the industry have forged a new category of new design tools called next-generation BIM or BIM 2.0. It's not just AI. There are a lot of new collaborative and cloud-based design tools, both AI-based design tools and other disruptive automation tools.   

It can be hard to know what’s worth investing in. What’s real. What will help a firm optimize its processes rather than disrupting the business and potentially harming the company. At Skema, we are architects creating solutions for architects. Our approach is to partner with firms and guide them on a path that leverages the firm’s intellectual property by way of previous designs and standards.  

3. Data-Driven Workflows for Real-Time Collaboration

For too long, architects have been working in file-based workflows. Collaboration has been in the form of episodic publish-addendum-revision cycles. A new type of workflow is needed. I see an accelerating effort to change to data-driven workflows in the cloud.

Firms possess vast amounts of data, including in areas like sustainability, energy modeling, and LEED certification. However, the challenge lies in effectively sharing this data internally and externally. The abundance of data in files, BIM models, and other sources creates an opportunity for architects to unlock valuable insights and streamline their workflows. 

I believe every designer and architecture firm is going to face key decisions: 

• How will you move from file-based workflows to data-driven workflows? 

• What is your approach to open data? 

• How can you share your data in a way that enables real-time collaboration with other design professionals?

Leading Firms are Automating Now

When the economy is good, designers are super busy and bill as much as they can. They have a lot of business right in front of them, and they tend to not spend a lot of time learning tools or skills, even if they promise a big bump in productivity.  

I’m no economist, but others think a recession is on the horizon. Hard to say. But uncertainty is in the air, and that creates an opening for new opportunities. This uncertainty, combined with AI and automation is, I believe, going to propel us into the What’s Next – the proverbial paradigm shift, if you will. 

When I look at what happened in the last big recession in 2008, I see that economic factors helped to really propel BIM in the market. Firms decided to use the slow down in projects to try new technologies and prepare for the upswing. It was a sea change. The entire industry shifted away from CAD and towards Revit and BIM. And that shift has had lasting effects for more than 20 years. But now it’s time for something new. 

Rise in AEC Industry Conferences & Publications 

If there’s any question about whether a major change is coming to the industry, just check out the rise in new conferences and major publications covering BIM 2.0. The AI in AEC conference was a virtual conference in Scandinavia earlier this year. The USC School of Architecture invited founders of new BIM solutions – myself included – to present at their annual BIMBOP conference. X3DMedia, publishers of AEC Magazine, added a second day to their NXT BLD conference – NXT DEV – to get deep into the disruptive technologies coming for the market. And AECMagazine has been covering next generation BIM on a regular basis, including this sneak peek article about Skema from the March/April issue.  

The shift towards automation opens up immense opportunities for increased productivity, improved collaboration, and enhanced design outcomes. What steps are you taking now to embrace automation and prepare your firm to succeed in this new era?  Email us at info@skema.ai