The construction industry generates vast amounts of data, much of which is unused or locked in spreadsheets. AI is changing this, enabling teams to accelerate decision-making, increase profits, and improve project outcomes. The true transformative impact of AI is highlighted by contractors, with 87% believing that AI will “significantly transform their business,” despite current low adoption rates, according to a new study from Dodge Construction Network (Dodge) and CMiC.
A recent study titled “AI for Contractors” found that automated proposal generation and progress tracking from site photos both reached a 92% effectiveness rating. Meanwhile, contract risk reviews achieved 85% effectiveness compared to previous, more traditional methods.
The report highlights how AI is enabling project managers to focus on strategic decision-making rather than time-consuming administrative tasks. Finance teams are also benefiting from AI technology, moving from historical reporting to predictive insights, allowing operational leaders to apply data-driven intelligence to improve project execution. The report found that AI is actually augmenting human input, rather than completely replacing human expertise.
“For decades, construction companies have lacked the tools to turn the data they collect into action. AI-powered solutions are changing that,” said Gord Rollins, president and CEO of CMiC. “This study highlights the high-impact results that contractors are achieving today.”
AI will change the role of contractors
Contractors surveyed believe that AI will act as a catalyst to reshape routine aspects of their operations, enabling predictive insights rather than reacting to problems as they occur. This provides a wide range of benefits, including tighter cost control, improved scheduling, and higher quality project delivery. In other words, overall outcomes improved.
A significant 85% of contractors expect to spend less time on repetitive tasks, and 75% believe AI will help mine historical data to learn from past projects. Rather than relying entirely on AI, 70% said the technology helps them make better and more informed decisions thanks to insights that might not exist otherwise.
AI adoption rates remain low, but businesses are preparing for broader adoption
Currently, adoption of AI in the construction industry is low, despite awareness being between 32% and 34%. There can be several reasons for this, including lack of clear understanding, internal approvals, and access to software. However, Dodge’s research found that more than half of the companies surveyed are making strategic preparations for AI, including pilot programs and staff training for AI-related roles.
According to the report, 40% of companies have set a fixed budget for AI, 38% are developing implementation teams, 19% are adapting old workflows, and 51% are evaluating AI changes.
Early adopters lead the way
Overall awareness of the use of AI in the industry is very low, with only 20% to 50% of contractors aware that AI has been implemented for specific administrative tasks, and few actively using these capabilities. Nevertheless, early adopters of AI have provided positive feedback, with over 70% finding AI tools highly effective compared to traditional methods, suggesting the potential for rapid growth in the use of AI across industries.
Security and accuracy are concerns
The main concerns of AI deployment revolve around security and accuracy. The report found that 57% are concerned about the accuracy of AI output and 54% have doubts about the security of their corporate data.
Internal resistance to change (44%) and implementation costs (41%) were also cited as key concerns, but perhaps surprisingly, only 21% expressed concern about job losses. 31% believe current data quality is still not good enough to support AI analytics.
According to the report, large contractors are more likely to rely on AI than smaller companies and are therefore more concerned about the quality and reliability of their data. For example, 69% of large contractors cited lack of reliability or accuracy in AI output as a major concern, compared to 54% of small and medium-sized contractors.
Survey data shows that while contractors are generally open to adopting AI, they tend to be deterred by the accuracy of AI output and demand better tools, more information, and more internal support.
17% of contractors say they don’t fully trust AI results, and this problem is even more pronounced in sensitive areas such as payments. Distrust in AI operations rose to 35%, with 31% not trusting AI to manage project budgets.
The big theme is that we need to understand AI before we can use it. On average, 21% of respondents said they wanted to know more about how AI works before considering using it, rising to 31% for more complex tasks such as safety risk assessments.
Contractors also believe they are limited by current software capabilities, with an average of 19% reporting that their software does not provide the AI capabilities they need. Increased to 33% for resource management.
Internal approval remains a notable barrier, with 22% saying their company has not yet approved the use of AI despite personal interest. Another barrier is the lack of time and resources to effectively evaluate AI tools. 13% cited this as the main reason AI has not yet been deployed.
Although there are obvious challenges and therefore significant market opportunities for mass use of AI in the construction industry, only 5% believe that AI will not be beneficial or improve current methods. This shows resistance stemming from a variety of concerns rather than a lack of values.
Steve Jones, Dodge’s senior director of industry insights and analytics, spoke about the findings.
“We designed this study to explore the use of AI in the digital tools that contractors already have in place, as it may offer the best solutions to data quality challenges. But we are also encouraged that many contractors recognize the key challenges and the need for a rigorous approach to successfully deploying these tools in their organizations,” the Dodge study states.
Key interests in new AI capabilities
The potential of AI is clearly recognized, even if the industry’s readiness to adopt it does not fully align with the data. When it comes to AI capabilities, certain areas such as automated construction analysis are garnering the most attention, with 81% seeing potential benefits. 80% are also interested in intelligent permitting, and 79% believe in autonomous schedules and resource optimization.
92% value contract management automation, and 76% recognize the potential for AI-powered dynamic pricing. While AI adoption remains limited, these strong numbers suggest the tide could soon turn.
A new era of AI and the construction industry
The latest data suggests a strong willingness, or enthusiasm, for AI adoption in the construction sector. However, better tools, clearer guidance, and more reliable output are just some of the areas that need to be addressed before interest can be implemented.
“With high awareness, strong interest, and strong validation from early adopters, contractors appear poised to significantly expand their use of AI-enabled tools in meaningful ways,” said Steve Jones.
Jones said the industry is at a “tipping point in AI adoption.” As companies begin to provide clearer paths for adoption, the movement toward AI-powered construction workflows will undoubtedly accelerate rapidly and forever reshape the way projects are delivered.
(Image source: “Tianjin Construction Site” Jakob Montrasio by @yakobusan is licensed under CC BY 2.0.)
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