Balfour Beatty has announced a £7.2 million investment in Microsoft 365 Copilot, one of the largest AI deployments in the UK construction and infrastructure sector to date. The AI assistant will be embedded across the company’s Microsoft 365 applications within its secure IT environment, aiming to significantly enhance productivity and safety across nationwide operations.
The move is part of Balfour Beatty’s broader digital transformation strategy, which also includes technologies such as virtual reality, biometrics and digital permitting. According to McKinsey Global Institute data, tech adoption in infrastructure can lift productivity by up to 15%—a gap Balfour Beatty is determined to close.
Microsoft 365 Copilot automates routine tasks, easing mental strain and allowing site teams to focus on higher-value work. Early employee feedback is strong: 75% report improved work quality, 77% experience less mental load, and 78% say communication has improved. Two-thirds of staff said they prefer roles where Copilot is available.
In parallel, Balfour Beatty and Microsoft are piloting AI-powered “smart agents” to support quality, health and safety processes. One such agent is being trialled on the A9 dualling project in Scotland, where it automates early-stage reviews of Inspection and Test Plans (ITPs)—a task previously requiring engineers to spend hours per review. By identifying outdated templates and prompting technical input, the tool improves speed, consistency and quality assurance.
Avoidable construction errors cost the industry an estimated £10 billion annually and contribute to 40% of safety incidents. By streamlining ITP reviews and freeing engineers to focus on problem-solving, the AI tool directly addresses these challenges.
“This investment demonstrates our commitment to harnessing the full potential of digital innovation to drive productivity and support our people,” said Leo Quinn, Group Chief Executive. “Expanding access to Copilot is the natural next step in our digital transformation.”
Jon Ozanne, Chief Information Officer, added that the partnership with Microsoft ensures both competitiveness and cybersecurity. Darren Hardman, CEO of Microsoft UK & Ireland, called the collaboration “a strong example of how AI is already having a measurable impact in the construction sector.”
Balfour Beatty’s AI investment marks a significant moment for the industry, aligning with wider efforts to modernise UK infrastructure. With a focus on ethical AI use, data security and operational efficiency, the company is helping to define a smarter, safer future for construction.
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