In an inherently high risk industry, construction businesses are faced with a range of challenges including theft and property damage to sites and equipment as well as health and safety risk. Traditionally, construction sites have relied on human oversight to monitor safety and security. However, AI-powered CCTV monitoring systems are revolutionising site security and risk management by using real-time AI analysis of CCTV footage, with features including hazard detection, compliance tracking and even fatigue monitoring.
These advancements have significant insurance and legal implications. For insurers, AI-powered CCTV represents a shift toward smarter underwriting, stronger claims defence, and closer client engagement. For construction firms, it’s a path to lower premiums, fewer breaches, lower risk of workplace incidents, and enhanced project credibility.
The evolution and impact of AI in construction
When visiting construction sites, it is not uncommon to see standard CCTV systems in place to monitor and identify potential issues. This approach, while better than no surveillance, presents significant limitations in effectiveness owing to a combination of passive recording capabilities and the requirement for human/manual monitoring to ensure intervention at the correct time.
Human attention spans are limited making continuous monitoring impractical. Where footage is not actively monitored in real time, incidents are typically reviewed after they occur, limiting the opportunity for immediate incident response or prevention.
Typically vast amounts of footage remain unexamined, potential insights are missed, and staffing costs for 24/7 monitoring will, over time become prohibitively expensive.
The integration of artificial intelligence into existing CCTV infrastructure represents a paradigm shift in how construction risks are actively identified and managed whilst demonstrating the potential of applying computer learning algorithms to construction site monitoring.
Systems utilising this technology leverage existing IP camera infrastructure while adding an additional intelligent layer which analyses video feeds using algorithms specifically trained to recognise construction-specific scenarios and risks. The technology can, amongst other things, automatically detect safety hazards by identifying PPE violations, unauthorised site access, and dangerous work practices. It monitors site activity patterns by tracking worker movements, equipment usage, and operational inefficiencies. Additionally, it can generate real-time alerts, notify supervisors immediately when risks are detected, and provide analytical insights by delivering actionable data to improve safety protocols.
The range of potential benefits of harnessing AI for enhanced security and compliance on construction sites has driven a surge of entrants to the market offering platforms that connect to existing CCTV systems to provide AI driven video analytics.
In a recent case study, data from one such provider – Ailytics, shows that the technology can deliver promising results over a short period of time. Their platform, which connects to existing 2MP IP cameras, demonstrated a substantial 73% reduction in ‘alerts’ over a five-week period suggesting that the immediate feedback loop created by AI monitoring led to improved site behaviour and compliance.
Risk and insurance considerations
For risk managers and insurers, AI-enhanced monitoring systems offer several compelling advantages: Insurers recognise that proactive risk management technologies warrant premium considerations. Builders seen to be implementing AI monitoring systems may qualify for reduced premiums based on demonstrable reduction in incident frequency, documented improvement in safety compliance, and the ability to prevent claims before they occur.
When incidents do occur, AI-monitored sites provide superior documentation through time-stamped video evidence of pre-incident conditions, verification of safety protocol compliance, and documentation of corrective actions taken. This evidence can prove invaluable in defending against claims and establishing the actual circumstances surrounding legitimate incidents.
As proven by early adopters, AI surveillance is an effective tool leading to lower loss ratios and greater underwriting confidence. For construction firms, it’s becoming a key element in risk financing strategies, offering both operational safety and tangible insurance advantages. In an increasingly cautious insurance market, AI-powered monitoring can give firms a competitive edge.
Should you have any questions in relation to risk management for construction projects, please do not hesitate to reach out to your Bellrock Advisor.
