2026: Proceedings of MMIT'26 International Conference
774-780
2026-06-06
Open Access

ARTIFICIAL INTELLIGENCE AND DIGITAL TRANSFORMATION IN CONSTRUCTION PROCUREMENT: ENHANCING SUSTAINABILITY, EFFICIENCY, AND STRATEGIC DECISION-MAKING

Bernardo Nicoletti
https://doi.org/10.61587/

Received: 2026-05-27

Published: 2026-06-06

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Abstract

The construction sector is undergoing a dramatic shift spurred by digitalization, artificial intelligence (AI), environmental requirements, and new procurement tactics. About 50-60% of construction projects are procurement expenditures. Procurement has developed from an administrative role to a strategic management function that affects long-term organizational performance, competitiveness, operational resilience, and environmental sustainability. The study examines the transformation of procurement operations in construction organizations through digital technologies and artificial intelligence. The analysis is informed by recent research on blockchain integration, circular economy principles, sustainability-oriented procurement, digital procurement ecosystems, AI-based procurement, and dynamic capabilities theory. Emerging technologies are given particular emphasis, including building information modeling (BIM), blockchain-enabled procurement systems, agentic AI, generative AI, predictive analytics, and Internet of Things (IoT). The study finds that AI-enabled procurement solutions significantly improve supplier evaluation, contract management, demand forecasting, lifecycle analysis, and risk reduction. Construction organizations can leverage machine learning algorithms and predictive analytics to optimize their purchasing decisions, enhance supply chain visibility, reduce waste, and improve project coordination. A discussion of the relationship between AI and Construction 5.0 is also provided, focusing on the transition to a sustainable, human-centered digital transformation. AI combined with circular procurement techniques will help firms minimize their environmental footprint and maximize resource efficiency and lifecycle management. A number of international case studies demonstrate the practical application of digital procurement techniques and AI-based decision-making systems. The research found that the major challenges to AI adoption include high implementation costs, limited technological competence, resistance to organizational change, cybersecurity risks, and regulatory ambiguity. The findings indicate that, despite the hurdles, the large-scale, long-term strategic benefits of using AI to improve the skills of construction businesses in planning, detecting, seizing, and reconfiguring can outweigh these challenges. The report indicates that digital procurement technology and artificial intelligence are reshaping the construction sector by transforming procurement into a strategic value-creating tool. The onus will be on organizations to embed AI within existing systems, expand digital capabilities, and establish governance mechanisms to promote ethical and sustainable innovation. The paper analyzes the use of supply chain management, blockchain, artificial intelligence, digital transformation, sustainability, construction 5.0, agentic AI, procurement innovation, and BIM in the construction industry.

Keywords

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About the Authors

Bernardo Nicoletti
bernardo.nicoletti@temple.edu
Temple University

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How to Cite

ARTIFICIAL INTELLIGENCE AND DIGITAL TRANSFORMATION IN CONSTRUCTION PROCUREMENT: ENHANCING SUSTAINABILITY, EFFICIENCY, AND STRATEGIC DECISION-MAKING. (2026). MMIT Proceedings, 774-780. https://doi.org/10.61587/

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