ÜBER DIESE EPISODE
In this episode of the Engineering Influence podcast, hosted by the American Council of Engineering Companies, Thomas Grogan engages with Vidhu Shekhar, Microsoft, Interim SLG Business Strategy Leader – Critical Infrastructure, Transportation & Public Finance, to explore the transformative role of technology in public infrastructure. With a focus on AI and cloud computing, the discussion delves into how Microsoft aids government and AEC firms in tackling complex challenges in infrastructural development and maintenance.
The conversation touches upon lessons learned in deploying AI, data privacy considerations, and the pivotal role of technology in upcoming global events. Additionally, Vidhu shares insights on workforce development in this new AI era, underscoring the importance of a collaborative approach between technology and human talent.
NOTIZEN ANZEIGEN 🔗
TRANSKRIPT 🔗
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Hello, and welcome to the Engineering Influence podcast brought to you by the
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American Council of Engineering Companies.
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My name is Thomas Grogan, Senior Director, Economics and Market Intelligence
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here at ACEC, and I'm very happy today to be joined by Vadu Shaker,
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Government Strategy Leader, U.S. State and Local Government at Microsoft.
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Vadu, thank you so much for coming. Thanks for having me, Thomas.
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Well, why don't we just get started with you introducing yourself to our audience
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and tell them all a little bit about what you do at Microsoft.
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Well, I always joke with people that I have the second best job at Microsoft.
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The best job, of course, is the CEO. Yeah, that's definitely the best one to have, right? Yes.
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And the reason I say that is because I get to work with our government customers across the country.
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And as you can imagine, these are some of the most complex organizations trying
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to solve some real world problems that make differences on the benefits people receive,
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on the roads we travel on, on the bridges we traverse, and responding to emergencies.
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And so in that, what I get to do is bring the core of our mission,
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which is empowering every single person and organization in the world to do more with technology.
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You know, I am very lucky to be able to bring to bear a lot of our partners,
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including some of your member companies, in solving these real-world problems.
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My role really is focused on how do we draw up strategies collectively and then
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focus on the mission that the customer has in serving the residents.
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Yeah. So, you know, you talk about this ecosystem you're working in,
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and it's big, it's complicated. So I'm sure we'll touch on a few different parts
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of that whole ecosystem.
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Let's start first with the clients, right? Who are your clients,
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the end customers who are responsible for this infrastructure?
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In 2025, what are some of the challenges that they're facing that you and your
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AEC partners are helping them solve?
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I don't think it's any surprise. Over the last several years,
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there was a massive push in rebuilding infrastructure within the U.S.
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The bipartisan infrastructure law was a big impetus and brought a lot of funding, right?
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And as we look at the landscape of infrastructure within the country,
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the key focus becomes, where do we build new things?
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Where do we help rejuvenate infrastructure that's been around for decades and
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in often cases is crumbling?
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And so in working with our AEC partners, really the conversation starts early, right?
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Is, okay, we've come into this era where computer-aided design is ubiquitous, right?
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I remember back when, in my undergrad days, there was this terminology for BIM
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software that was just developing, right?
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And now we have 3D models, digital twins, all of this as the start of this conversation, right?
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And of course, behind that, is the power of cloud computing,
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which is where Microsoft plays a very significant role in bringing to bear those
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compute resources as well as artificial intelligence resources so that you can
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build out multiple scenarios of a particular infrastructure project even before
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having embarked on that journey.
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And so that's just one of the examples where we start enough.
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The second piece that I think I'm very excited about, and if folks are going
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to be at the TRB Technology Conference in May, we'll be doing a little panel
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discussion on this, is virtual inspections.
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And again, extending that concept, inspections is a very, very manual and time-consuming
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effort when it comes to infrastructure.
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And imagine if you're on a floating bridge. It just complicates things just a tad bit more.
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And so we've done a very exciting pilot project with the University of Washington
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and WSDOT, including some of the AAC partners that are in your membership,
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as well as other software providers.
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And so that would be a very exciting way to show the impact sort of at the end
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stage of maintaining an infrastructure.
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Right. So you're spanning kind of the whole life cycle.
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You talk about the scenario planning in the beginning and I'm sure the cost
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savings that exists today by being able to do 15 different scenario plans very quickly,
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go over it with your client, figure
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out what the right one is to implement all the
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way through now we've built the bridge power
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system how are we optimizing the
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operation and maintenance of that piece which you you know talk about you know
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with this inspection or maybe it's still monitor monitoring that has changed
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a lot even in the past 10 years let alone 25 years from now absolutely yeah
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yeah yeah that's that's really interesting.
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And for the AEC firms that you're working with, how do they partner with Microsoft
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on some of these technology solutions?
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You mentioned the cloud computing, the AI technologies. How do they work together
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with you on delivering some of these infrastructure programs?
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That's a very good question. And one thing I think we've all realized is every
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single company now is a technology company. Right.
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Irrespective of the sub-segment you serve. So whether you're in financial services,
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let's take Visa or MasterCard, they have a massive technology footprint.
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And similarly, in the context of AEC firms, there is a massive amount of technology
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powering that entire operation, right?
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And making sure that they are able to project on plans, bid on plans much more
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efficiently, build out things much more efficiently, have a safety first culture on those work sites.
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And then, of course, in the operations and maintenance.
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And so as we kind of think about it, right, there is sort of that back office
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technology components. You know, you have your planning software,
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all of those components.
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All of that needs to reside somewhere.
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And of course, the world's most popular financial system is Microsoft Excel.
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Yeah, and Excel is really that lowest common denominator that,
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you know, you could spend all your time learning many different tools,
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but ultimately you get your data into Excel to get it into PowerPoint to show
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your trend lines and, you know, scenario planning.
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And that hasn't changed much over the past few decades. And that goes to the core of productivity.
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Right. And so as we kind of think about it, the first step we always start with,
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which is sort of boring and mundane, but it's day-to-day productivity software.
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And that's where is the first step we can collaborate together.
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The second piece is what is the specific line of business software that an AEC
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firm has, either specific to forecasting their bid estimates or work order management, right?
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And being able to then work with them to rebuild that software with an AI-enabled
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approach so that they can bring the knowledge that they have over the past several decades,
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or in some cases, more than a century's worth of institutional knowledge,
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and bring it to the fingertips of a brand new engineer coming out of college.
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And providing them some sort of a co-pilot that gives this brand new engineer
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the power of institutional knowledge for the past several decades.
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And we've seen this be very successful with several of your member companies.
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And I think the last but not the least is, well, most infrastructure projects
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are sort of build, operate, and transfer.
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And when the asset gets transferred back to the government, there is suddenly this vacuum of data.
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Because it was the AEC firm that did all the work that typically then takes
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it and goes to the next project.
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And this is where, again, technology through interoperability,
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via a data lake or like, can provide that bridging effect. Yeah.
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Where it is a seamless transfer over to governments.
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And in some cases, we are partnering with AEC firms to make sure that they can
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start using government technology assets from the get-go so that there is no
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vacuum when there is a transition. Right.
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And so, you know, I think this talk of a vacuum brings up an interesting point
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and challenge that the industry is facing right now with respect to technology.
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Some of it is around the nature of projects and you work on a project and you
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get a lot of data and then there's who owns the data.
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Does it get transferred? You talked a bit about these AI aided designs or tools,
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which are all built on data to become smarter.
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Are you seeing challenges on the procurement client side that are restricting
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the ability of using these tools or other,
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say, hurdles that, you know.
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Companies might encounter because in theory, an AI aided solution is great.
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The reality of having all these different players, stakeholders,
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contracts, you know, one piece of the puzzle might not allow for a certain data
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collection methodology or, you know, information presented in a certain format, things like that.
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Is that, you know, kind of getting worked on still in the early stages?
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How are you seeing that? Do you have like four hours left in the podcast?
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I don't know. How much time do we have? It is a complex question. Right, right.
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And I'll sort of take this back to the core of data privacy laws around the country.
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Yeah. Because I think that's where the conversation needs to start.
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Okay. As to what data is being collected, first of all, and who owns the data
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and who's the data steward.
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And in most cases in the public sector domain, well, the public owns the data
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and the government is acting as a steward on behalf of the public.
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And what the AAC firms or any private company then does with that data should,
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in theory, come back and benefit the public good.
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And this is where I think the lack of certain data privacy laws,
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I think there's only 13 states across the union that have data privacy laws in place.
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Makes it difficult for us to have that very transparent conversation.
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Yeah. You know, a lot of conversations at the national level have been,
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does it make sense for a cohesive data platform for interoperability?
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We've seen this happen very successfully in the health and human services space. Okay.
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Right. And that could be a model. And certainly there's entities working at
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the USDOT level to explore what this would look like.
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That, I think, in effect, is going
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to help inform what sort of procurement language needs to be in place.
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And, you know, if there is that availability of data up front,
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the life cycle from that point in terms of who owns the data,
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and if that remains in the public domain, well, there could be multiple copies.
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And open data laws across the country have really helped improve access to this kind of data. Right.
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And so this would just be kind of another data type, perhaps made available
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through geospatial mapping tools or otherwise for even citizen developers to
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be able to take that and say, hey,
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you know, we've been experiencing a lot of issues crossing this particular intersection.
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Let's leverage what I, you know, citizen know.
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And let's propose something to DOT. And that can evolve into a project of itself, right?
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But that's where I think there's the power of the data to help not only the
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AEC firms be able to have well thought through and structured plans on addressing a project. Right.
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But really creating that data lifecycle that then a citizen developer can kind
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of go and help inform the plans of the government.
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Yeah. You know, I like how, you know, you bring up data privacy,
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data privacy laws, and depending on what metrics or rubrics you're looking at,
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certain states or things like GDPR might be more advanced, this or that.
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Are there other, let's say, federal policies or laws that you are tracking with
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relation to AI and other tech development that, you know,
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you have thoughts on that you think will be impactful that our members should
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also, you know, be aware of that's happening?
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I would say the two that are sort of top of mind for me right now.
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And one, because, you know, then this is the AI action plan that the White House has put together.
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OSTP just wrapped up the RFI for the AI action plan.
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And we, as Microsoft presented our point of view into what that American AI looks like.
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Keeping innovation at the forefront while promoting research and safety along the way.
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And to be very, very focused on both the technology as well as the workforce.
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I think the AI action plan is going to be very important for all of the AEC firms to take a look at.
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Because this is going to be the one way, as I was saying before,
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every company has become a technology company.
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And this provides a way to partner with not just the federal government,
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but also all of the state governments and local governments in terms of being
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able to leverage AI in infrastructure projects.
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So that's one that's a problem of mine. The second one is, of course,
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the surface reauthorization problem.
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And as you know and probably remember, in the bipartisan infrastructure law,
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there wasn't really a carve-out for technology spend on infrastructure projects. Okay.
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And anecdotally, what I've heard is like, you know, FAA, if they get a grant,
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there is about 15% of that grant monies that can be devoted towards technology.
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But when we look at the same thing for surface infrastructure,
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I would hazard guessing that number for technology is 0.0001%. Yeah.
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So by comparison, there is already a very stark contrast in the amount of investments
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that come through on technology.
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And the fact that technology has become such a core component of infrastructure
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delivery now, that we need to fundamentally rethink what that is. Yeah.
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I mean, is some of the challenge, as you brought up and started with your point
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that every firm is a technology firm.
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If technology is so embedded in certain processes or day-to-day activities,
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it almost maybe is there but is not getting captured?
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Or I mean, is that a challenge that you see?
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Or do we need to have such a carve-out or specification of for $1,
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10 cents is allocated for technology, 15 cents is for materials, 20 cents is overhead.
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In my limited experience, what I've seen is unless it is in the policy at the
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federal level, it does not trickle down to the other local and state governments.
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And when people apply for NOFOs, like they all do, whether formula or competitive
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grants, They go back to the eligibility criterias as defined in the policy. Right.
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Which is why I think it's important for us to address this at perhaps the level
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of the Congress and make sure that the policy has a carve out specific to this. Got it.
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And making sure that, yes, we identify a carve-out for technology without perhaps
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necessarily specifying at a very detailed level, to your point, right?
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Giving the AEC firms, giving other, you know, NOFO recipients the flexibility
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to think about how they want to leverage this bucket of money, right?
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But I do think that it is very important for us to codify it in the policy documentation.
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No, that makes sense. And so, you know, when we were talking a little bit just
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before that on regulation and policy, you brought up technology and then workforce.
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Workforce is a very big issue around for the AEC industry for a variety of reasons, right?
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How do you or Microsoft think about workforce development enabling,
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you know, the folks who are going to be the engineers of the future today?
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What can we do to ensure that continuity?
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Some of the stuff, you know, folks who are retiring, you're losing a lot of
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knowledge when they leave the workforce. course, there's concerns that AI will
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weaken the cognitive development of folks.
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You know, when they're younger, they'll be too dependent on tools.
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How are you thinking about all of that?
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Well, let me start by sharing a very personal experience.
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I have two young daughters, seven and six.
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And, you know, a couple of years ago, 875 days ago, it's my counter for the
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days since ChatGPT has been launched.
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You know, I authored a book and I wrote about, you know, generative AI use cases
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in state and local governments.
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And of course, they were a little bit younger. And when the author copies arrived,
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they're like, oh, dad, you wrote a book.
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And they opened it and it was all full of text and no images.
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And so they were very disappointed.
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But in order to address the disappointment, I said, hey, look,
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why don't we go into, you know, Bing chat and see if it can take some of the
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language in my book and create some fun images for you.
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And we did that And that afternoon exercise Created this creative burst In my
00:18:27.440 --> 00:18:32.980
daughters Where they were like Okay, well maybe I can write a story And you can make it into a book.
00:18:34.132 --> 00:18:41.072
That goes to the core, and my belief, is how we address education in this new era of AI. Okay.
00:18:41.432 --> 00:18:45.732
Right? Where I think we have to continue working on, to your point,
00:18:45.792 --> 00:18:50.792
the cognitive abilities while argumenting them with AI.
00:18:51.012 --> 00:18:55.112
Yeah. And leveraging AI, perhaps, as a teacher's aid, if you will.
00:18:55.352 --> 00:18:58.212
Right. To create customized learning paths for our students.
00:18:58.492 --> 00:19:02.492
Mm-hmm. And that's at the very young, K-12 kind of age group.
00:19:02.492 --> 00:19:07.672
I've also seen and heard firsthand, you know, major universities,
00:19:08.152 --> 00:19:12.032
the Ivy League universities, you know, R10, R15 universities,
00:19:12.272 --> 00:19:19.972
they are all incorporating AI in some form in the delivery of content to their students.
00:19:20.152 --> 00:19:24.932
And it's across different segments, civil engineering, you know,
00:19:25.072 --> 00:19:28.852
all of the engineering, even in the arts, they have it. Of course,
00:19:28.952 --> 00:19:31.372
filmmaking has had that for a very long time.
00:19:31.512 --> 00:19:34.072
And it's coming down into medicine as well. Yeah.
00:19:34.452 --> 00:19:41.992
The key, again, is how do we help push a student's ability and continue having
00:19:41.992 --> 00:19:48.132
them understand where AI can help fill in certain gaps in their education journey.
00:19:48.432 --> 00:19:53.232
But when we come to the professional workforce, the conversation becomes a little bit more complex.
00:19:53.452 --> 00:19:58.892
Right. Because, of course, there's this fear that AI is going to take my job away.
00:20:00.239 --> 00:20:04.559
And I don't think popular media has helped. Could go on and on about Skynet
00:20:04.559 --> 00:20:08.279
stories and why, you know, there is always this fear of AI.
00:20:08.619 --> 00:20:14.339
But what we've learned at Microsoft that for us, it needs to be a partnership.
00:20:14.559 --> 00:20:17.799
And it goes back to some of our responsible AI principles, right?
00:20:17.959 --> 00:20:24.079
Where it is about the human in the loop and making sure that AI is a co-pilot
00:20:24.079 --> 00:20:27.099
and not an autopilot, right?
00:20:27.379 --> 00:20:31.959
And so for that lens, what we've done, and we did this in December of 2023,
00:20:32.639 --> 00:20:38.339
our vice chair, Brad Smith, in fact, kicked off a partnership with AFL-CIO.
00:20:39.039 --> 00:20:46.699
And this partnership is really focused on, one, identifying the impacts AI can have on the workforce.
00:20:46.919 --> 00:20:53.019
And then second, working collaboratively to create upskilling and reskilling
00:20:53.019 --> 00:20:54.839
programs to help address those impacts.
00:20:55.459 --> 00:21:00.139
And finally, be able to actually share that with the policymakers so that they
00:21:00.139 --> 00:21:05.599
can have informed policymaking around workforce development in this new era of AI.
00:21:06.439 --> 00:21:11.659
And so as I kind of look at this cohesively, I go back and sort of contextualize
00:21:11.659 --> 00:21:13.099
this for the AEC firms, right?
00:21:13.499 --> 00:21:20.079
We have always, in the last two decades at least, seen this massive shortage
00:21:20.079 --> 00:21:25.339
of qualified, skilled pipeline of workers coming into AEC firms,
00:21:25.339 --> 00:21:28.319
irrespective of the position, right?
00:21:28.319 --> 00:21:34.919
And I think that that's what we need to focus on is how do we fill the gap in that pipeline?
00:21:36.599 --> 00:21:40.059
AI being a co-pilot for the folks that are already in the pipeline.
00:21:40.859 --> 00:21:44.859
Yeah, no, very well said. Well, Vadu, we're getting towards the end of this
00:21:44.859 --> 00:21:49.699
podcast, but I guess I just wanted to, you know, get your thoughts at a high level.
00:21:49.819 --> 00:21:57.999
What are you most optimistic or excited about in the AEC infrastructure space over the next, you know,
00:21:58.179 --> 00:22:02.679
5, 10, 15 years with all these new developments and changes and,
00:22:02.699 --> 00:22:06.299
you know, Microsoft continuing to partner with our member firms?
00:22:06.779 --> 00:22:12.399
I don't know if I can crystal ball this thing 10, 15 years, but there's a couple
00:22:12.399 --> 00:22:17.959
of big events here in the short term that I'm really excited about and would love to partner about.
00:22:18.279 --> 00:22:20.219
First and foremost, the World Cup next year.
00:22:20.799 --> 00:22:23.739
I think a lot of the AEC firms are super excited.
00:22:23.739 --> 00:22:26.879
I am particularly excited because I'm a soccer fan,
00:22:27.039 --> 00:22:33.059
but I think this brings in massive opportunity for us to collectively showcase
00:22:33.059 --> 00:22:39.139
what we can do in terms of infrastructure development to the rest of the world.
00:22:39.419 --> 00:22:42.419
The second big one, of course, is LA-28.
00:22:43.199 --> 00:22:47.739
And again, I think the scale at which Olympic events happen and the impact they
00:22:47.739 --> 00:22:51.599
have on local infrastructure and economic development is amazing.
00:22:51.599 --> 00:22:57.179
And I know several of the AEC firms are already engaged in the Southern California region.
00:22:57.699 --> 00:23:02.699
And, you know, I would love to have this conversation around where we bring
00:23:02.699 --> 00:23:04.159
learnings from around the world.
00:23:04.639 --> 00:23:09.339
Having, you know, as Microsoft, first-hand experience in helping with the Olympics
00:23:09.339 --> 00:23:14.279
in different continents, as well as World Cups in different continents. Yes. Right.
00:23:14.439 --> 00:23:19.279
And I think for once, I feel really confident that technology is going to make
00:23:19.279 --> 00:23:25.059
a very positive impact, especially when we think about L.A. 28 being a transit first Olympics.
00:23:25.539 --> 00:23:30.079
Yeah. Right. And so I think those are the couple of things that I'm very, very excited about.
00:23:30.719 --> 00:23:33.739
The last and this is perhaps me being a Californian.
00:23:34.727 --> 00:23:39.807
We've had a lot of natural disasters. And I feel like in the last five years,
00:23:40.047 --> 00:23:42.327
there's been exponential growth in natural disasters.
00:23:42.987 --> 00:23:46.347
Which brings us to the rebuilding process.
00:23:47.007 --> 00:23:51.387
The process is often stymied by the long permitting times.
00:23:51.727 --> 00:23:56.207
And then just the whole process of, you know, construction, you know,
00:23:56.547 --> 00:23:58.267
debris removal, all of that.
00:23:58.667 --> 00:24:02.407
What I am actually getting excited about is if I crystal ball to the next 10
00:24:02.407 --> 00:24:09.187
years, The ability for AAC firms to be able to leverage perhaps drone technologies,
00:24:09.647 --> 00:24:11.447
other geospatial technologies,
00:24:11.927 --> 00:24:16.727
being able to predict certain things in terms of weather events,
00:24:16.927 --> 00:24:24.027
and be able to almost provide support to the government in recovery response
00:24:24.027 --> 00:24:28.927
in a way that really collapses the recovery time for our communities.
00:24:29.587 --> 00:24:33.567
And to me, that would actually be sort of the holy grail of our partnership
00:24:33.567 --> 00:24:39.487
between AEC firms, Microsoft as a technology company, and our government and communities.
00:24:39.987 --> 00:24:46.747
Yeah, I know that nimbleness to be responsive is definitely a great opportunity there.
00:24:47.107 --> 00:24:50.507
Well, thank you very much. Well, who do you think will win the World Cup?
00:24:51.107 --> 00:24:54.527
Oh, you know, I am always biased towards Bussle. Okay.
00:24:54.847 --> 00:25:00.067
All right, I'm going to go France, but who knows? Well, let's wager a dollar,
00:25:00.267 --> 00:25:02.867
and we'll see who it is. Okay, yes, in a few years, we'll check back in.
00:25:03.187 --> 00:25:04.507
Well, Vidu, thank you so much for
00:25:04.507 --> 00:25:09.067
joining us. I want to thank everyone for listening to our podcast today.
00:25:09.247 --> 00:25:13.887
And if you can, please like or subscribe to the Engineering Influence podcast
00:25:13.887 --> 00:25:16.867
on whatever media channel you are using.
00:25:17.167 --> 00:25:19.507
Well, Thomas, thank you so much for having me. Yeah, absolutely.
00:25:19.507 --> 00:25:22.207
And thanks to ACEC for hosting this podcast. All right, great.