The Role of AI in Trade Businesses

In our industry, many businesses can be reluctant to adopt new technology. But the reality is, artificial intelligence (AI) in trade businesses is growing and quickly becoming a standard industry practice. Before jumping to conclusions though, it’s important for HVAC, electrical, and plumbing contractors to become educated on these AI tools and offerings. This technology may not be exactly what you think it is—and it could make all the difference for your business’ success in the future.

What Is Artificial Intelligence?

AI is a complex technology designed to use computers to simulate human thought processes, hence the term “artificial intelligence.” Where a search engine simply provides a list of sources that contain the search terms, AI can assimilate the data collected and answer specific questions with more of the original context understood.

AI uses online resources to find and gather information, compare the results, and provide relevant data to the user at very high speeds based on the user’s question. Search engines provide a list of possible sources for the information the user is searching for, but the reader must analyze the information themselves. With AI, that analysis happens before the results are even delivered to the user.

Without knowing it, you may have already used a form of AI and become completely comfortable with it. Remember when we were reluctant to turn on a computer or switch to a smartphone? Many of us were hesitant when confronted with technology we’d never used before. However, most of us are now fine with using these tools. Today, AI is that new tool.

How Can AI Help My Trade Business?

AI in trade businesses can best be described as an employee who rarely needs a break, has information at the drop of a hat, and doesn’t need a paycheck (or only requires a small monthly fee). Today, there are many AI development companies focusing on the trades, including tasks like project management and time tracking.

AI powered solutions help avoid costly mistakes in daily tasks, like payroll updates, which often result from human error. For example, a simple numerical mistake can become quite expensive when making large capital investments. So it’s easy to see how valuable it could be to have tools that prevent errors from happening in the first place. 

Many AI-powered software solutions designed for trade businesses focus on increasing profit centers, reducing waste, and managing labor—because that’s what’s important to us as contractors. As your company sees improved efficiency from AI, you’ll also discover that these benefits are scalable.

HVAC Contractors

HVAC contractors are among the trade businesses that can most benefit from AI-powered project scheduling, materials management, and logistical control. AI-powered project management systems can be designed to order inventory or alert you when the inventory of a critical component of your daily work becomes limited.

Some AI-powered HVAC design solutions can function as systems designers. When using the system to design a new HVAC project, the software can let you know if certain components you’ve selected are incompatible, potentially saving you time and money in the process.

Electrical Contractors

Electrical contractors can often do their work without using a particular brand of equipment, so they tend to shop around for the best value. AI can update pricing, availability, and quantities of common materials automatically, so the user will always have the most current pricing at their fingertips without additional searching.

Electrical trade businesses also tend to use materials made from a commodity, like copper or aluminum, so having the most current pricing information can be a huge advantage. AI can even predict future trends based on historical market data, alerting you if the market conditions indicate a shortage of these commodities is around the corner.

Some AI-powered project management tools use a concept known as optioneering. Optioneering is where AI is used to create a number of possible solutions to a given problem in real time. For example, a large electrical contractor might use optioneering to respond to an RFP (request for proposal) from a local school system. 

If the school system decides to make changes to the original RFP, the contractor might have to start the RFP over, having wasted the effort creating the first version. If AI is supporting the process, it could quickly replicate the original work with the updates needed to meet the needs of the school’s new RFP—saving the contractor from starting over. 

Plumbing Contractors

Successful plumbing trade businesses commonly use AI to find the most cost-effective way to install a plumbing system. Instead of estimators, vendors, project managers, and salespeople having to spend endless hours finding pricing and availability of labor and materials, AI can do all these repetitive tasks quickly with very high accuracy.

However, at this point in its evolution, AI used in trade businesses focuses mostly on design improvements, data collection, and reporting. In the plumbing industry, these might include applications that provide autonomous project management, time tracking, and better inventory control. 

Getting Comfortable with the Role of AI in Trade Businesses

Many of us probably remember the first time we used a computer—the uncertainty of what buttons do and where links would take us—but we soon discovered all the ways it could be useful in our lives. In that same way, it will take time to learn these new AI tools and understand their full potential, especially when it comes to business.

By taking small steps in the way we incorporate AI, we can better acclimate ourselves and our systems to its features and benefits. This may mean identifying one area of your business that you’re comfortable with optimizing via AI, like project management, and selecting an AI management tool to test on a small project.

This way, your team will be able to test its functionality on something tangible—a real-life business scenario—while also keeping it contained so that you don’t feel overwhelmed by different workflows or troubleshooting issues. Over time, you’ll find your comfort level increases with these tools, just like it did with computers and other technologies of the early 21st century.

Maximizing the Role of AI in Your Trade Business

In the trade industry, companies are going to interact with AI whether we intend to or not. In fact, you’ll probably find that many of your own vendors have already begun utilizing the technology in their own work. And yes, this means your competitors are likely eyeing its advantages as well.

Being open and optimistic about AI—and experimenting with its uses—is the key to keeping our trade businesses from falling behind. As your confidence with it grows, you can begin to implement AI tools in more areas of your business until you’re fully optimizing operations from the ground up. 

Given the time and willingness to adapt, you’ll be amazed at how much AI can enhance your team’s productivity and, ultimately, drive your business forward.