Melissa Faulkner on the Future of Construction in the AI Era
Melissa Faulkner has been at Skanska for over 20 years, holding various technology roles before her appointment to CIO in 2021. Through that time, she's been leading digital transformation initiatives for the U.S. arm of the global construction firm, and today, she's leading the company to its AI-powered future.
"I've had the opportunity to grow through a lot of different technology leadership roles and experiences and transformations, industry specific and societally as well," Faulkner told Newsweek. She said she remains excited to implement new strategies and tools to "really change how we're doing things as an organization."
The construction industry has been heavily affected by the broader forces currently reshaping the business world. Supply chain and talent strategy for any company has changed a lot in the wake of global conflict, the proliferation of remote work and a post-pandemic shift in people's perceptions of work over the last five years. But construction has an argument for being among the most affected.
"Global uncertainty has grown as the world's largest economy seeks to rewrite global trade agreements, driving up construction-related commodity prices, with further increases expected. This is another headwind as the sector continues to struggle with skilled labor shortages," a Cushman & Wakefield report states.
Industry group research found that 78 percent of U.S. construction firms have difficulty hiring hourly craft workers, while skills gaps and shortages persist. Advancements in machine learning and generative AI technology promise to be a salve for recruiting, retention and safety. Faulkner sees this potential and notes opportunities in sustainability as well, with the help of emerging technology.
"There's a physicality to what we do every day, and that's not going to be replaced by AI and some of the innovation technologies," she said. "What we're trying to do is figure out: How do we actually automate, augment and support our workers that are out in the field every day and make sure that we can kind of take those repetitive tasks, take away the things that prevent them from being able to focus on safety and quality and really delivering what we need?"
Melissa Faulkner, CIO at Skanska
Melissa Faulkner, CIO at Skanska
Newsweek Illustration
Faulkner shared her experience working on Skanska's migration to the cloud, data and cybersecurity improvements and a recent revision of the HR tech stack. Some of the earliest AI deployments have included a safety agent, called Safety Sidekick, and tools that help supply-chain teams communicate faster to get ahead of potential shortages or changes to tariffs.
"We look at technology innovation and AI in three major categories," Faulkner said. "One is, at an enterprise platform level, we look at startup partnerships and solutions that are helping be more innovative. And then we look at things that we can do internally, using our own data, our own secret sauce, if you will, that are unique to how we approach our industry and our work."
The Safety Sidekick is an example of an internal tool that fits her description. The machine-learning algorithm is fed with industry standards, OSHA regulations and Skanska's project files, "and it basically enables our team to quickly synthesize and evaluate safety information," Faulkner explained.
"It's a complement to helping you complete your day-to-day tasks, but it's also a tool for you to prompt and learn [that] helps train, educate, coach and make tools and resources available for our teams as well," Faulkner said.
The always-on chatbot can answer questions, identify risks and help site managers prepare and plan throughout construction projects.
"Our workers out in the field can prompt something to learn more about the risks associated with their activity of the day and how [to] mitigate them," Faulkner said. "It allows us to share this expertise and knowledge of wisdom across all of our projects across Skanska, which helps our teams develop stronger mitigation plans."
Construction is a profession noted by OSHA for having the highest rate of fatalities and high rates of people missing time due to work-related injuries. Anything that can be done to bring those figures down can decrease costs, keep people happier and also attract more people to the profession.
"Every day on our jobsites, we start off with a safety plan. We make sure that we know, top to bottom, the various things that we're going to be doing on a jobsite and the right way to operate," Faulkner said. "That's generating so much data every day. Those construction work plans generate data that feed [Safety Sidekick], so now, as people are developing their plans and mitigation strategies, we're also capturing those lessons learned."
As new technology is deployed across the workforce, and technical skills remain an ongoing area of interest, Faulkner said, she has partnered closely with HR on identifying technology solutions for different departments based on their needs and upskilling across the company.
"One thing is clear: AI is reshaping roles, and it's creating new ones every day," Faulkner said. "Our HR community knows that better than any[one]."
She points to her partnership with HR as a key to the company's future success.
"We're working hand in hand with them on: How do we make sure we can upskill our organization? How do we make sure people are comfortable leveraging data and AI and being more comfortable doing that?" Faulkner shared. "We've developed training programs that help all of our employees, when they're onboarded, really understand what data is available to you and how you can use this. We have a robust training program around data, analytics and AI and things that help to open people's curiosity."
Looking ahead, Faulkner also said she expects to see a better course for gender equity in the technology field and credits an inclusive culture at Skanska for helping her in that mission.
"I'm personally passionate about helping women rise in industries and roles, especially where we've been historically underrepresented," Faulkner said. "Technology is reshaping every industry, everywhere. What's going to set companies apart is [having] diverse voices at the table that are driving change."
As previous research has noted, simply reaching equal representation is not only the goal but rather the expected outcome of a more just society. The tech industry needs to proceed with caution and respect for the societal harms it may perpetuate or cause.
"You need to have diverse perspectives and voices at the table, and that means you need to make sure that you create opportunities for people and you really open doors for people," Faulkner said. "As female leaders, we also have to be mindful that when doors are open for us, we're opening doors below us, and we're bringing people up."
Faulkner will join Newsweek at this year's inaugural Women's Global Impact forum, speaking on a panel with two tech CEOs and Newsweek's editor-in-chief Jennifer Cunningham. The August 5 event, hosted at Newsweek's headquarters in New York City, will bring together some of the world's top female executives and connect them with rising stars across industries and job functions.
For more information on the event, please visit the Women's Global Impact homepage.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
an hour ago
- Newsweek
Map Shows Countries With Highest US Visa Overstay Rates
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The State Department is proposing a pilot program that would require some visitors to post a bond of up to $15,000 before being granted a U.S. visa, targeting travelers from countries with high visa overstay rates. A map created by Newsweek shows what countries would be affected if the pilot program were implemented based on the most recent available overstay data. The map highlights nations like Angola, Liberia, Mauritania, Sierra Leone, Nigeria, Cabo Verde and Burkina Faso—all with visa overstay rates above 10 percent in 2023. Why It Matters According to a notice published Monday in the Federal Register, the 12-month program would apply to applicants for business and tourist visas from countries identified as having high rates of visa overstays, poor internal document security or citizenship-by-investment programs that require no residency. The bond would be returned if the traveler departs the U.S. on time, and forfeited if they stay past the allowed date. What To Know The new visa bond program would take effect August 20, according to documents reviewed by Newsweek and a notice previewed Monday on the Federal Register website. The Department of Homeland Security says the goal is to ensure the U.S. government doesn't incur costs when a visitor violates visa terms. "Aliens applying for visas as temporary visitors for business or pleasure and who are nationals of countries identified by the department as having high visa overstay rates ... may be subject to the pilot program," the notice said. According to U.S. Customs and Border Protection data, more than 500,000 people overstayed visas in 2023. By comparison, other countries have far more total overstays, but much lower rates. Colombia had the most total overstays in 2023 with 40,884, followed by Haiti (27,269), Venezuela (21,513), Brazil (20,811) and the Dominican Republic (20,259). Colombia also sent nearly 945,000 visitors to the U.S., resulting in a relatively low overstay rate. The administration of President Donald Trump first introduced a version of the visa bond rule in 2020, but it was never implemented due to the sharp decline in international travel during the COVID-19 pandemic. The revived proposal includes similar criteria and is part of a broader effort to tighten immigration enforcement. The list of countries subject to the bond requirement will be released at least 15 days before the program begins, according to the notice. The State Department said the program would help determine whether the long-standing assumption that visa bonds are too difficult to enforce holds up under modern conditions. What People Are Saying The public notice stated: "The Pilot Program will help the Department assess the continued reliance on the untested historical assumption that imposing visa bonds to achieve the foreign policy and national security goals of the United States remains too cumbersome to be practical." Andrew Kreighbaum, a journalist covering immigration, posted to X, formerly Twitter: "It's getting more expensive for many business and tourist travelers to enter the U.S. On top of new visa integrity fees, the State Department is imposing visa bonds as high as $15,000." What Happens Next Visa bonds are not new, but the State Department has rarely used them. A section of the Foreign Affairs Manual has described the process as impractical, a view the department now says was based on assumption rather than data.
Newsweek
2 hours ago
- Newsweek
U.S. Clean Tech Leadership at Risk Due to Trump Policies, Investors Warn
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Daniel Weiss is the co-founder and managing partner of Angeleno Group, a Los Angeles-based venture capital and growth equity investment firm founded in 2001 to seek out opportunities in what was then called "alternative energy." Not quite a quarter of a century later, solar and wind power have gone from alternative to mainstream. "The basic economics of clean energy have transformed in the last 20 years," Weiss told Newsweek. "A big part of the reason for that is that it's simply more cost effective." The combinations of solar or wind with battery storage have become the cheapest and fastest ways to add power capacity and they provided more than 90 percent of the new electricity sources added to the U.S. grid last year. The rest of the world is "stealing a march" on the U.S. by encouraging clean energy while the Trump administration turns away from renewable sources, veteran clean tech investor Rob Day said. The rest of the world is "stealing a march" on the U.S. by encouraging clean energy while the Trump administration turns away from renewable sources, veteran clean tech investor Rob Day said. Newsweek Illustration/Canva/Getty With the current surge in demand for power, market forces should be driving clean energy and climate-friendly technology companies to new heights. But the Trump administration's hostile posture toward renewable energy and climate policy has brought volatility and slower growth. Weiss said the best way to make sense of this moment is to "zoom in and zoom out. Zoom in to the past 8 months in the U.S. and you'll find a "steady drum beat of bad news" for the sector. "Investment has slowed in certain parts of the space," Weiss said. Zoom out to a global perspective long-term view, however, and a very different picture emerges. "One might even make the case that this is one of the most compelling moments to be deploying capital, at least since we founded our firm 20 plus years ago," Weiss said. Newsweek's Better Planet has been talking with clean tech investors about how they are navigating these extraordinary times for a series called "Climate Investing in a Volatile Climate." In this installment, we hear from two veteran investors in the sector, Weiss and Rob Day, co-founder and partner at Spring Lane Capital. Both pointed to the sharp contrast between current U.S. policy and economic reality, and both predicted that market forces will overcome ideology. President Donald Trump has eliminated most of his predecessor's supportive policies for clean energy, pulled the U.S. out of the global Paris Climate Agreement and is seeking to do away with the legal basis for regulating greenhouse gas emissions altogether. "It's a pretty rocky road ahead in the near term, and there's a lot of disruption," Weiss said. In May, former U.S. Treasury Secretary and Federal Reserve Chair Janet Yellen joined Angeleno Group's Board of Advisors to offer strategic guidance. Weiss said "global tailwinds are largely intact" for clean tech, with most other countries still committed to net-zero pledges. Late last month, United Nations Secretary-General António Guterres called on countries to make more ambitious climate goals to take advantage of a "new energy era" of cheap, clean power. "Nearly 80 percent of the world has sent a signal to capital markets, to investors that we're on a long-term trajectory moving from a low efficiency, high carbon world to a higher efficiency, low carbon world," he said. The "universe of investment possibility" in clean tech today is much greater, he said, even though valuation for some companies is lower. "So, deal flow is up, valuations are down," he said, a combination that recalls legendary investor Warren Buffett's advice to "be greedy only when others are fearful." The Clean Tech Hype Cycle On the opposite coast in a downtown Boston office, Spring Lane Capital co-founder Rob Day said he sees the sector going through a phase similar to that identified in the Gartner hype cycle. In that model, emerging technologies eventually reach a period of realistic but robust growth. But first, there is a peak of inflated expectations, followed by what's called a "trough of disillusionment," which is where some clean tech companies find themselves now, Day said. "I think for EVs in the U.S., in particular, we're in the trough of disillusionment right now," Day told Newsweek. Trump's "One Big Beautiful" bill passed by Congressional Republicans last month phases out tax credits for EVs, and the maker of the best-selling EV model, Tesla, suffered blowback due to its controversial CEO. But look beyond the headlines, Day said, and there are signs that EVs will soon pull out of the disillusionment trough. "If you look at the underlying market numbers, adoption has continued to grow," he said, as the lower total cost of ownership for EVs is still a compelling selling point. Day said a similar dynamic is playing out for other clean technologies as the gloomy headlines about the demise of supportive federal policy drive away some recent arrivers who jumped into a "frothy" market. The rate of growth has changed, he said, but clean tech is, by and large, still on a growth trajectory. Day's resume includes a consultant position at Bain & Company and a role with the World Resources Institute's Sustainable Enterprise Program, and his Cleantech Investing column was required reading for many people in the sector through the Bush and Obama years. Over that period, he has seen the sector adjust as federal subsidies and policy support waxed and waned. "We've learned how to operate within that kind of an environment before," Day said. His advice to investors in the sector: think more broadly about sustainability than just solar and wind—think about circular economy solutions, waste reduction and efficiency. Look to investment potential in states that have either supportive policies or basic needs for sustainability, such as a lack of landfill space or rising power demand. Also, he said, investors should look abroad. Just as Weiss pointed out the continued global support for climate action, Day said other countries are now taking greater advantage of the clean tech opportunities. "The rest of the world is just absolutely stealing a march on us, and the U.S. is absolutely going to lose its leadership position on all of these technologies and solutions of tomorrow," Day said. "And it's a crying shame."
Newsweek
4 hours ago
- Newsweek
McDonald's Announces Menu Change for Hundreds of Stores Next Month
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. McDonald's has announced it will introduce a lineup of new beverages, including cold coffees, fruity refreshers, and crafted sodas, in a market test across more than 500 restaurants this September. The fast-food chain said the test will feature drinks inspired by its CosMc's concept. Newsweek has reached out to McDonald's for comment via email. Why It Matters The menu change reflects McDonald's ongoing response to evolving customer demand and fierce industry competition. Recently, the company ended its Krispy Kreme donut collaboration citing profitability and supply chain challenges, and also debuted several other menu changes, signaling a broader strategic shift. Market tests like the new beverage rollout allow McDonald's to adapt quickly to consumer trends as it seeks to maintain its position amid rising costs and shifting eating habits. The company's U.S. division has reported a 40 percent average menu price increase since 2019 and slower sales growth in recent quarters. What To Know McDonald's will debut its new beverage test menu at over 500 U.S. locations later this summer, including Wisconsin, Colorado, and nearby states. The new drink lineup will include creations like the Creamy Vanilla Cold Brew, Strawberry Watermelon Refresher, Sprite Lunar Splash, and Popping Tropic Refresher. These drinks combine creative flavors with convenience, mirroring some of the innovative beverages first featured at CosMc's, an offshoot focused on specialty drinks. According to McDonald's, the shift comes in the wake of customer surveys and lessons learned from CosMc's, as well as an expanded focus on beverage sales driven by younger demographics. "We're seeing real momentum in beverages, with more people—especially our Gen Z fans—turning to cold, flavorful drinks as a go-to treat. It's a great opportunity for us to meet our US customers' evolving tastes and show up in new moments, like afternoon refreshment or snack breaks," Alyssa Buetikofer, chief customer experience and marketing officer for McDonald's USA, said in a press release. The test is structured to gather feedback from customers and local restaurant teams, with McDonald's owner/operators playing a direct role in shaping operations for any potential expansion. "We've got the structure, the tools, and the team to move fast and scale what works," Charlie Newberger, beverage category lead, said in a statement. "This first test in the US market is a big step in our global direction." Beyond beverages, McDonald's has recently introduced or expanded several menu offerings, including the Daily Double burger as part of its McValue Meal deal. The brand also announced the return of the Snack Wrap, and new dessert items like the Hershey's S'mores McFlurry. A person walks past a McDonald's restaurant on Broadway on June 11 in New York City. A person walks past a McDonald's restaurant on Broadway on June 11 in New York People Are Saying Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "After the spectacular failure of the CosMc's campaign, McDonald's is shifting its focus back in-house, aiming to capture market share from brands like Starbucks and Dutch Bros. There's considerable consumer demand for specialty beverages, and McDonald's sees an opportunity to tap into this lucrative market segment, even if it means gaining only a small portion of the pie." He added: "The fast-food industry is increasingly exploring revenue streams beyond traditional meals, especially as rising food costs pressure profit margins. Specialty beverages offer higher profitability, allowing businesses to offset other declines." "Consumers continue to prioritize convenience and are willing to pay a premium for quick, quality offerings. This shift could redefine expectations in the fast-food sector, benefiting companies that adapt effectively and creating more diverse options for customers over the long run." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "McDonald's latest experimental run into new drink types is a fascinating turn of made an aggressive push into different coffee-related drinks to compete with chains like Starbucks, only to pull back as the venture wasn't as successful as hoped." He added: "This latest decision to introduce new drink types speaks to McDonald's desire to bring back customers who left due to higher prices, and the decision to debut them in only certain markets means they've learned from past ventures and are experimenting with these in select cities first before determining whether they would be good options for their nationwide menu." What Happens Next? McDonald's will begin testing the new beverages at select locations starting September 2. The company aims to assess customer response and operational impacts before considering a larger rollout. Expansion to additional markets could follow based on test results and feedback from local teams.
