HUMAN-CENTERED INNOVATION: ETHICAL AND SOCIAL DIMENSIONS OF DIGITAL TRANSFORMATION IN THE CONSTRUCTION INDUSTRY – A REVIEW

Abstract The construction industry is experiencing a rapid digital transformation driven by artificial intelligence (AI), automation, and data analytics. While these technologies promise increased efficiency, sustainability, and safety, they also raise significant ethical, social, and workforce challenges. This review synthesizes existing literature on AI and digital innovation in construction, emphasizing ethical considerations, human-centered design, and policy frameworks. By analyzing recent research, including studies on Industry 4.0 and 5.0, ethical AI, and human–robot collaboration, this paper identifies gaps in current practice and provides recommendations for integrating ethical governance and social responsibility into construction digitalization. The findings highlight the importance of interdisciplinary approaches to align technological innovation with societal well-being and sustainable industrial policies. Furthermore, the review critically examines issues of data governance, algorithmic bias, transparency, accountability, and the implications of automation on employment patterns and skills development within the construction workforce. It underscores the need for regulatory frameworks that promote responsible AI adoption while safeguarding workers’ rights and promoting inclusive participation in digital transformation processes. The study also calls for proactive capacity-building strategies, ethical training in construction education, and stakeholder collaboration among policymakers, industry leaders, and academia. Ultimately, it argues that the successful digitalization of construction depends not only on technological advancement but also on embedding ethical foresight, social justice, and sustainable development principles into innovation pathways.