New Research Reveals Strong Contractor Optimism About AI’s Transformative Impact on Construction Industry

Dodge Construction Network, in partnership with CMiC, released AI for Contractors, a new research report examining how AI is reshaping the construction industry. The comprehensive study reveals that 87% of contractors believe AI will have a meaningful impact on construction, with many predicting extensive industry-wide transformation.

“For decades, construction firms have lacked the tools to transform the data they’ve collected into action. AI-enabled solutions are changing that,” says Gord Rawlins, president and CEO of CMiC. “In fact, this research highlights the high-impact results contractors are achieving today; 92% effectiveness in automated proposal generation and 86% in contract risk review. What makes these findings truly remarkable is that they represent real outcomes our customers and peers across the industry are experiencing today.”

From task-doers to strategic decision-makers
Contractors envision AI reshaping core aspects of their operations, elevating project managers from administrative roles to strategic positions that enable predictive insights rather than reactive responses. The anticipated benefits extend across scheduling optimization, cost control and enhanced project delivery quality.

• 85% of contractors expect they will spend less time on repetitive, mundane tasks
• Over 70% believe they can make better decisions because AI offers insights they might not arrive at on their own
• 75% look ahead to AI helping them learn from past projects by mining historical data.

Organizational readiness varies
While current adoption remains limited, more than half of surveyed companies are actively exploring AI through pilot programs and preparing staff for AI-related roles.

• 40% are currently allocating a dedicated budget to AI
• 38% are creating implementation teams
• 19% report adapting legacy workflows for an AI environment
• 51% are actively evaluating several potential AI-related changes across their teams.

Strong results from early adopters
Only 20-50% of contractors are aware that specific project and company management functions are AI-enhanced, and usage is even lower, with 20 of the 23 functions studied used by fewer than 15%. Despite this limited use, the study uncovered remarkably positive feedback from early adopters. Seventy percent or more of contractors already using a combination of AI-enabled project and company management functions report they are highly effective compared with previous methods. This lays the groundwork for rapid expansion in the use of AI in the industry.

Top AI capabilities of interest
Contractors expressed particularly strong interest in several emerging AI functionalities:

For project management:

• 81% recognize the benefit of automated constructability analysis to identify potential field issues during design
• 80% express interest in intelligent permit submission with automatic compliance checking
• 79% note strong potential for autonomous project optimization that adjusts schedules and resources in real time.

For company management:

• 76% identify opportunities in dynamic pricing optimization based on market conditions and risk factors
• 92% acknowledge the value of automated contract creation and management
• 79% value intelligent bid-no-bid decision support

Concerns and obstacles about AI for construction
Over half of contractors express concerns about data accuracy (57%) and security (54%), and more than one third worry about implementation costs and internal resistance. The biggest challenge to wider use of AI in construction is the state of data quality at most contractors’ organizations. Only 26% of contractors rate their current data quality as high.

“We designed this study to look at the use of AI in the digital tools already deployed by contractors because that may offer the best solution to the challenge of data quality,” says Steve Jones, senior director of industry insights research at Dodge. “But it is also heartening to see that many contractors are aware of the key challenges and the need for a rigorous approach to successfully implementing these tools at their organizations.”

Looking ahead
The research indicates the construction industry is nearing a tipping point for AI adoption,” said Jones. “With high awareness, strong interest and powerful validation from early adopters, contractors appear poised for significant expansion in their use of AI-enabled tools in meaningful ways.”

To explore the full findings and additional insights into how AI is reshaping construction workflows, download AI for Contractors.