A new artificial intelligence agent developed by Built Technologies is set to overhaul the construction finance industry by reducing loan disbursement approvals from weeks to just a few minutes. The technology automates a traditionally slow and manual process, promising significant efficiency gains and improved risk detection for lenders and developers.
During a three-month pilot program with several lenders, the AI, known as the Draw Agent, demonstrated the ability to process complex funding requests with remarkable speed and accuracy. The results suggest a major shift in how capital flows through large-scale building projects.
Key Takeaways
- Built Technologies has launched an AI "Draw Agent" to automate construction loan funding requests.
- Pilot testing showed a 95% reduction in approval times, with some reviews completed in as little as three minutes.
- The AI detected 400% more risks compared to human-led reviews and ensured 100% policy compliance.
- The system is trained on a proprietary dataset covering trillions of dollars in construction project data.
The Bottleneck in Construction Finance
In the construction industry, funding is not delivered in one lump sum. Instead, developers "draw" funds from their lenders in stages as they complete specific milestones, such as laying the foundation or completing the framing. This process is known as a draw request.
Historically, each request has required extensive manual labor. Loan officers must meticulously review documents, verify that the work has been completed as claimed, assess potential risks, and then approve the disbursement of funds. This can take days, or even weeks, creating significant delays that can stall projects and increase costs.
Understanding Draw Requests
A draw request is a vital component of construction financing. It's the formal process a builder uses to get paid for work completed. Delays in this process can have a cascading effect, slowing down payments to subcontractors, suppliers, and laborers, and potentially halting the entire project.
These delays introduce friction into the construction ecosystem, affecting everyone from the capital partners to the general contractors and subcontractors on the ground. Built Technologies aims to eliminate this friction point.
Introducing the AI Draw Agent
Built Technologies, a fintech company valued at $1.5 billion in 2021, has developed an AI solution to this long-standing problem. The company's new Draw Agent functions as an "embedded teammate" for lenders, taking over the repetitive and time-consuming tasks of the draw request process.
"We’re trying to improve that ecosystem up and down the value chain of the construction real estate industry," said Chase Gilbert, CEO of Built Technologies. "There is an opportunity to fundamentally serve the ecosystem... where everyone’s looking at the same information at the same time and can request funds or can make a payment with more confidence."
The agent handles document review, progress verification, and risk assessment automatically. By doing so, it frees up loan officers to focus on more complex, high-value tasks. The system is designed to connect all key stakeholders, providing a single source of truth for the project's financial status.
Powered by a Decade of Data
The effectiveness of any AI model depends on the quality and quantity of its training data. According to Gilbert, the Draw Agent has a significant advantage in this area. It has been trained on trillions of dollars worth of construction draw data that Built has collected over the past decade working with major lenders.
The AI model's intelligence is built upon trillions of dollars in proprietary construction finance data, giving it a deep understanding of project risks and patterns.
"And that’s where AI really shines. It needs a lot of data and context in order to get smart and make decisions, and we certainly have a lot of proprietary data on that," Gilbert explained. This massive dataset allows the AI to identify anomalies and potential risks that a human reviewer might miss.
Pilot Program Delivers Staggering Results
Before its broad market release, the Draw Agent was tested for three months with a select group of lenders, including Anchor Loans. The results from this pilot program were dramatic and highlight the technology's potential impact.
Participants in the trial reported several key improvements:
- Speed: Draw approvals were 95% faster, with some reviews finalized in just 3 minutes.
- Risk Detection: The AI identified 400% more potential risks than its human counterparts.
- Compliance: The system achieved 100% adherence to each lender’s specific policies and procedures, eliminating human error.
- Return on Investment: Companies reported a 300% to 500% ROI, even with loan portfolios as small as 500 loans.
Lenders involved in the pilot noted a significant reduction in their manual workload. This allowed them to increase operational efficiency without the need to hire additional staff, directly impacting their bottom line.
The Future of Real Estate Development
The introduction of AI into the construction finance workflow marks a pivotal moment for the industry. By automating draw requests, Built Technologies is not just speeding up a single process; it is potentially accelerating the entire pace of real estate development.
Faster access to capital means builders can pay their trade partners more quickly, purchase materials without delay, and keep projects on schedule. For lenders, including major institutions like U.S. Bank, Citi, and Fifth Third that already work with Built, the technology offers a way to manage their portfolios more efficiently and with greater confidence.
As AI continues to integrate into various sectors, the construction and real estate industries are poised for a transformation. The move from manual, paper-based processes to intelligent, data-driven automation could unlock new levels of productivity and reduce the financial risks inherent in large-scale building projects.