Key facts
- Builders FirstSource invested $25.3 million in AI construction platform Digs.
- The investment is part of a five-year commercial agreement.
- Digs uses AI to consolidate fragmented construction data into a single platform.
- The partnership aims to streamline builder workflows from design to warranty.
- AI tools are expected to significantly reduce time spent on tasks like material takeoffs.
Builders FirstSource is accelerating its strategy to become a comprehensive partner for homebuilders by investing $25.3 million in Digs, an artificial intelligence-powered construction workflow platform. This strategic move aims to embed Builders FirstSource more deeply into the daily operations of its builder customers.
The new-home market is currently experiencing a slowdown, prompting homebuilders to seek greater scale, reduced cycle times, lower costs, and increased productivity. Builders FirstSource is responding by consolidating building products, component manufacturing, digital design, estimating, and AI-enabled workflow tools into an integrated operating platform.
The investment in Digs, which is the sole lead investor in the company's Series A funding round, is central to this strategy. The partnership includes a five-year commercial agreement. Digs utilizes AI to organize the vast and often fragmented data generated during home construction and ownership, including plans, specifications, approvals, product information, and communications.
This capability is intended to be integrated into Builders FirstSource's existing digital ecosystem, offering builders a more cohesive workflow from the initial design and estimating phases through construction, closing, warranty, and eventual homeownership. This evolution marks a shift for Builders FirstSource from a mere building-products distributor to an increasingly essential operating partner.
Digs' platform consolidates disparate construction documents and data points, such as plans, change orders, emails, and selections, into a structured format. Its AI can then process this information, allowing users to ask project-specific questions and perform calculations. The platform also aims to automate manual tasks like material takeoffs and design studio diagramming, with AI potentially generating takeoffs in seconds and reducing the time spent on these tasks by 80% to 90%.
Furthermore, Digs seeks to enhance the customer and homeowner experience by creating a 3D digital twin of the home, providing product information and maintenance reminders. This detailed data can also assist warranty teams, potentially reducing unnecessary claims and service visits.
Builders FirstSource President and CEO Peter Jackson views AI as a tool to augment, rather than replace, human talent, freeing up skilled individuals to focus on more complex problem-solving. The company has a history of technological investment, notably acquiring software provider Paradigm in 2021. The collaboration with Digs is seen as another significant step in its technological advancement.