In this conversation, Kyle Halls, Director of Community Engagement at CREtech, talks with KP Reddy, CEO and Founder of ZeroRFI, about why construction costs continue to rise while technology makes nearly everything else cheaper. KP challenges the industry's traditional approach to building delivery, arguing that only 70 cents of every dollar spent on construction actually makes it into the finished asset. They explore where the remaining 30% goes, how AI can eliminate inefficiencies across design, procurement and construction, and why owners and developers should be the biggest beneficiaries of these savings. The discussion also examines how AI-powered collaboration, better project data and a new approach to project management could fundamentally change how buildings are designed, delivered and operated. KP argues that the real opportunity isn't simply making existing processes faster, but rethinking how projects are executed to make buildings up to 30% cheaper.

Takeaways
- Only around 70 cents of every dollar spent on construction makes it into the finished asset, with inefficiencies, poor coordination and rework driving unnecessary costs.
- AI could make buildings up to 30% cheaper by improving decision-making, reducing waste and bringing greater predictability to design, procurement and construction.
- AI can connect architects, engineers and contractors, identifying design conflicts earlier and reducing costly change orders, delays and rework.
- Greater contractor efficiency doesn't automatically translate into lower building costs, but competitive pressure and new delivery approaches could help pass those savings on to owners and developers.
- Rather than focusing on broad corporate AI strategies, organisations should build a continuously learning "project brain" that improves decisions, identifies risks and delivers measurable results throughout the project lifecycle.

Sound Bites
- "Only about 70 cents of every dollar actually makes it into the asset."
- "There's probably three or four ways we could save thirty percent on a building."
- "The biggest impact can be made at a project level."
- "Let's go to the job site first."
- "The power of AI is in delivering magic every day, not some big strategic plan."

KP Reddy, CEO & Founder of ZeroRFI: https://www.linkedin.com/in/kpreddy/

Learn more about ZeroRFI: https://www.zero-rfi.com/

See KP Reddy on the Main Stage at CREtech New York, October 20–21, for his session exploring how AI could make buildings 30% cheaper and what this means for owners, developers and the future of construction.
Agenda here: https://cretech.com/agenda