Digital twins and AI powering Canadian infrastructure

Digital twins and AI key drivers for Canadian infrastructure progress

Digital twins and AI are reshaping Canada’s infrastructure landscape by improving planning, reducing risks and accelerating project delivery.


In brief
  • As Canada embarks on a new chapter of nation-building infrastructure projects, public and private stakeholders should consider digital twins — and AI more broadly — to strengthen momentum.
  • Incorporating advanced technologies and modern tools can accelerate progress, reduce costs and align building capabilities with market expectations.
  • Effectively deploying these capabilities requires leaders to first assess where they stand on the modernization journey today, and then create an integrated plan to make and measure progress.

As Canada’s public and private sectors embark on a collaborative new wave of infrastructure investments, leaders should consider the benefits of embracing emerging technologies. Incorporating digital twins — and more broadly, AI — can help address the kinds of costly challenges large infrastructure projects typically face. Doing so now can accelerate momentum at a time when infrastructure is poised to play a pivotal part in shaping Canada’s future. 

How can digital twins and AI advance infrastructure in the spirit of nation building? 

Aging infrastructure is not a new problem. It is, however, a key opportunity as Canada digs in to solve the challenge — and simultaneously strengthen the nation amid geopolitical, economic and trade uncertainty. 

Canada’s Major Projects Office and National Infrastructure Assessment recently marked a once-in-a-generation push for strategic infrastructure. This builds on the 2024 launch of the Canadian Infrastructure Council, an advisory committee tasked with delivering a national infrastructure assessment. Still, bridging identified gaps will take more than sheer will. Succeeding requires resources, vision and, increasingly, new tools.

When infrastructure projects adopt modern digital tools, those initiatives become much more likely to meet timelines, cost targets and other meaningful stakeholder benefits throughout planning and delivery. This can be real gamechanger, given historical data shows only 0.5% of global megaprojects finish on time, on budget and on benefits.1  The Canadian government has recognized the potential innovative technologies can play, launching the Construction Sector Digitalization and Productivity Challenge program to help the sector adapt. 

Now, it’s time to jump on that possibility. Innovative, forward-looking investments in digital twins and AI can help accelerate adoption and address the lifecycle challenges in infrastructure. To fully realize the potential of these technologies through the supply chain — and unleash infrastructure’s potential for nation building — owners and developers must actively help develop and implement this digital shift.

What benefits can digital twins and AI create for Canadian infrastructure projects?

Digital tools can support all phases of large-scale infrastructure projects, from planning and delivery to operations. From approvals to schedules and costs: infrastructure estimates often rely on incomplete or siloed data, creating risk of delays and overruns. But digital twins and AI can change that. These tools collect, integrate and analyze vast datasets, offering stakeholders upsides like:

  • Real-time visibility
  • Predictive insights
  • Collaborative platforms

Taken together, those benefits strengthen planning assumptions as well as delivery execution. What does that look like in practise?

 

Digital twins are dynamic, digital representations of physical assets, systems or processes that link the physical and digital worlds. They integrate real-time data from a variety of sources, including sensors, Internet of Things (IoT) devices and historical databases, to provide comprehensive insights into the performance, condition and behaviour of their physical counterparts. This technology empowers stakeholders to simulate scenarios, predict outcomes and make informed decisions based on validated and integrated information.

 

That effectiveness gains additional power when positioned in a common data environment. The digital thread becomes a communication framework, connecting data across the entire lifecycle of an asset, from design and construction to operation and maintenance. This digital thread integrates relevant information seamlessly, makes it accessible to people, facilitates collaboration and helps inform stakeholders’ decisions. You gain a centralized repository for the infrastructure project’s lifecycle data; one in which you can access, share and analyze information in real time to get a holistic view of what’s happening and how the project is evolving.

 

Over the last three years in particular, digital twin technology has advanced considerably. The advent of new large language models (LLMs) and faster chip speeds means digital simulation now occurs in near-real time, offering predictive capabilities. Meanwhile, the cost of implementing digital twins has decreased significantly over the last four to five years as AI, sensors and Internet of Things (IoT) have become democratized. 

 

Essentially, while digital twin technology isn't new, the improvements have made it much more effective. This capability represents a huge step change for infrastructure planning, delivery and operations — which typically take place in isolated, linear ways that often create inefficiencies and lead to missed opportunities. 

 

By integrating AI with digital twins, infrastructure leaders gain even more benefits. Joining these technologies up empowers you with a systems thinking approach to infrastructure development. Digital twins provide real-time digital representation of physical assets, while AI enhances this capability with its immense processing power and advanced data analysis capabilities. Together, they help leaders navigate the intricacies that traditional methods struggle to manage. By analyzing vast amounts of unstructured data, AI uncovers hidden patterns, predicts potential issues and optimizes resource allocation across all project phases. This synergy breaks down barriers between stakeholders, reduces costs and expedites project delivery.

How can leaders begin adopting digital twins and AI to drive infrastructure success?

By facilitating a deeper understanding of physical infrastructure dynamics, digital twins enable infrastructure owners to anticipate challenges and seize opportunities throughout the project lifecycle. 

Digital twins allow infrastructure project owners to dismantle typical constraints like limited data, integration and processing. A more complete project data model will provide faster communication and better insights using analytics and AI tools to improve data-driven decisions, reducing the time needed for ad hoc analysis and minimizing the need for assumptions.

This data-driven approach not only streamlines and strengthens decision-making, ultimately resulting in more reliable project delivery; it also helps optimize capital allocation. 

Looking farther out, digital twins, combined with AI capabilities, also provide ways for infrastructure owners to enhance operational strategies once an asset is complete. Predictive maintenance and safety, performance monitoring, energy efficiency and sustainability, capital improvements and asset renewal all stand to gain. 

But getting there requires leaders to engage now. Those who act first — defining digital outcomes, investing in capabilities and liaising early with regulators — can set the benchmark for Canada’s next era of nation building.

At EY Canada, we recommend stakeholders get started by taking six critical steps: 

1. Assess long-term needs and value drivers: Engage with internal stakeholders to assess value in the lifecycle and ways digital twins can become a tool to realize that value. From cost savings to risk reduction and many more benefits: you want to understand how digital opportunities can strengthen your existing infrastructure portfolio, future projects  and organizational strategy, defining your digital twin and AI vision.

2. Develop an organizational, data and technology roadmap. Create a roadmap that outlines the organizational, data and technological journey necessary to achieve your vision. This could include creating new internal capabilities and structures, such as a Centre of Excellence, or implementing a continuous improvement framework for technology solutions to sustain progress.

3. Engage with industry and technology providers. Foster collaboration with vendors to co-create solutions tailored to your specific needs. Participate in industry forums and engage with peers to share insights, drive innovation and collectively shape the future of infrastructure technology.

4. Invest in research and development: Dedicate resources to conduct in-depth research on digital twins and AI technologies for the organization. Understanding the potential applications and benefits will empower you to make informed decisions that enhance project outcomes.

5. Promote education and training: Invest in resources and training programs that equip your teams with the skills necessary to effectively implement digital twin and AI technologies. A well-trained workforce is essential for maximizing the benefits of these innovations.


Summary 

The proliferation of digital twins and AI technologies in infrastructure delivery represents a significant opportunity for infrastructure owners and developers. Realizing that potential requires a departure from current thinking and an openness to fundamentally change how projects are procured, managed and executed. Moving in this direction can not only enhance project delivery and asset management, but also foster the additional industry innovation and collaboration that’s necessary to address the growing infrastructure gap — and build a stronger Canada for the future.

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