Issue link: https://read.dmtmag.com/i/1541014
Will Artificial Intelligence Increase the Prices of Construction Materials, Equipment, and Labor? By now, you've likely seen news discussing how artificial intel- ligence (AI) is set to change the construction industry (and every other industry, for that matter). Typically, this discussion centers on improving business efficiency and cost savings. Many construc- tion companies are predictably using AI to assist with project estimating, processing submit- tals and Requests for Information (RFIs), and, yes, contract review. However, as more players in the construction industry adopt AI, it may lead to some poten- tially unexpected outcomes for contractors, like higher material, equipment, and labor costs. Ear- lier this year, several construction companies filed class-action anti- trust lawsuits against the largest equipment rental providers in the United States, alleging a conspir- acy to artificially inflate equip- ment rental prices. Specifically, the plaintiffs allege these provid- ers illegally conspired to increase prices by sharing real-time, con- fidential data through the "Rouse Rental Insights" (RRI) program. The lawsuits have been con- solidated into the matter of In re Construction Equipment Anti- trust Litigation (Case No. 1:25- cv-03487) and are pending in the United States District Court for the Northern District of Il- linois.Many large construction equipment rental providers use RRI to share pricing data from individual line items on invoices. The RRI program uses AI to ag- gregate pricing information and generate a recommended "RRI Price" daily for each class and category of equipment. The RRI Price considers seasonal changes and other market fluctuations to predict the optimal rental price for a given day. The plaintiffs in the class action contend that by sharing their confidential pricing data with the RRI pricing tool and agreeing to use the AI-driven "RRI Price," the equipment rental providers have conspired to significant- ly increase rental prices. The plaintiffs argue that such price increases are harmful because (1) there are relatively few large equipment rental providers; (2) buying (rather than renting) equipment is uneconomical for most contractors; and (3) in- creases in equipment rental rates do not significantly decrease the demand for equipment rentals. Above is a graphic contained in the plaintiffs' complaint showing the growth in the U.S. construc- tion equipment rental industry since 1997, which plaintiffs contend is due in part to their alleged conspiracy. The class action lawsuit is ongoing, and the results may determine how AI is utilized in the construction industry going forward. If the equipment rental companies successfully defend the use of the RRI Price, other industry players could adopt similar AI pricing models, which could lead to increased prices in other segments of the construc- tion industry. www.jdsupra.com IDA Universal Nov - Dec 2025 34