Procore announced Aug. 26 that it is entering a multiyear strategic partnership with Amazon Web Services (AWS). The pact between the cloud-based construction management platform provider and the cloud data storage giant will include partnering on go-to-market activities and product innovation for construction, including expanded use of artificial intelligence-enabled workflows.

Procore CEO Tooey Courtemanche said in a statement thatproduct development in AI, data interoperability and analytics will help the company's customers reduce risk and make better data-driven decisions. Procore’s construction management platform is also now available in the AWS Marketplace as part of the partnership.

"This partnership with AWS reinforces our efforts to deliver a more intelligent and connected platform to our customers," Courtemanche said.

Procore said the collaboration will expand cross-team engineering initiatives between Procore’s product and technology teams and AWS. Under the agreement,Procore will leverage Amazon Bedrock large language models (LLMs) in its AI offerings, powering Procore AI agents for tasks such as document analytics, construction task automation and assistance to streamline project delivery and reduce risk.

"With AWS as one of our strategic collaborators, we will continue to supercharge our Agent Builder and Developer Studio, enabling owners and general contractors across verticals to plan, build and operate their construction portfolio with greater scale, efficiency and cost effectiveness,” said Steve Davis, Procore's president of product and technology.

For AWS, the partnership is another foray into developing construction solutions using data stored on its cloud servers. AWS already has an extensive partnership with Autodesk and develops AI and other products using data from construction customers who consent to have it analyzed while using the Autodesk Construction Cloud service.

"The strength of Procore’s connected platform is supercharging digital transformation in the construction industry," said Allison Johnson, senior manager for the Americas Tech Partners at Amazon Web Services. "We are thrilled to strengthen our collaboration with Procore, a company built for and by the construction industry. By combining Procore's deep industry expertise with AWS cloud infrastructure and services, we can empower customers in construction to unlock new levels of productivity, gain deeper insights from their data and scale their operations more effectively."

Contractor Balfour Beatty is collaborating with AWS and Procore to digitize its construction management process.

“The combination of Procore and AWS helps us build smarter and more efficiently,” said Kasey Bevans, its senior vice president and CIO in a statement. “By providing access to real-time data, actionable project analytics and clear sight lines into KPIs and project health to improve decision-making, we're better able to reduce risk–which is fundamental to our business.”

They are hitting all the buzz words with this press release. Procore has build an impressive project management application for the construction sector and if one company is capable of unlocking the potential in AI it’s procore. But I may be biased because I used to own shares in Procore.

But look how the AI stack is forming! So many layers before you can access a tech that isn’t cheap! If the reduction in risk and increase in efficiency doesn’t show up in the margins I can see the Procore team ditching this partnership to cut costs in time of a construction slowdown.