Market trends · Updated September 2026

AI in Construction 2026: Why Contractors Are Adopting AI to Make Their Staff More Efficient

The data is clear: construction companies are moving from "should we try AI?" to "where does it save us the most time?" Here's what the 2026 research says, and how to put it to work in your company.

By the Xpand Build Tech team · 8 min read

61%

of contractors already use AI or plan to increase their AI investment, up from 44% a year earlier.

Source: AGC 2026 Construction Hiring & Business Outlook
70%

of mid-market and enterprise construction firms have AI deployed to some degree.

Source: HubSpot & Evenbound, 2026 Construction Report
50%

of construction firms spend more than 10 hours every week on manual data entry.

Source: HubSpot & Evenbound, 2026 Construction Report
84%

of construction project professionals say reporting is where AI could add the most value.

Source: Mastt, State of AI in Construction PM 2026
23%

of contractors already use AI for estimating, and 45% use it for office and administrative work.

Source: AGC 2026 Construction Hiring & Business Outlook
53%

of firms expect hiring craft workers to stay difficult or get harder. Every hour saved matters.

Source: AGC 2026 Construction Hiring & Business Outlook

1. AI adoption in construction jumped in a single year

According to the Associated General Contractors of America's 2026 outlook, 61% of contractors now use AI or plan to increase their investment in it, up from 44% the year before. That is one of the fastest technology shifts the industry has seen.

Where are they using it? Contractors report AI for office and administrative tasks (45%), estimating (23%), design and preconstruction (20%) and recruiting, training and HR (16%). In other words, AI is landing first in the back office, exactly where construction companies lose the most hours to repetitive work.

2. Manual data entry is the hidden cost

HubSpot and Evenbound's 2026 study of 250+ senior leaders at U.S. construction firms found that half of firms spend more than 10 hours per week on manual data entry. Meanwhile, 70% have AI deployed to some degree, only 2% have no AI plans at all, and only about half believe their data is ready to support AI.

What this means for you: before AI can help, information has to stop living in disconnected spreadsheets and inboxes. Connecting your systems and replacing critical spreadsheets with real apps is often the first and highest-return step.

3. Where construction professionals expect AI to add the most value

Mastt's 2026 survey of construction project management professionals asked where AI could add value. Reporting led the list by a wide margin:

Reporting
84.3%
Document management
69.4%
Cost management & forecasting
65.7%
Contract administration
63.9%
Scheduling
62.0%
Estimating & takeoffs
59.3%
Risk & issues
54.6%
Payments & claims
53.7%
Compliance
50.0%
Procurement & tendering
49.1%

Source: Mastt, State of AI in Construction Project Management 2026 (108 respondents, March-June 2026).

The same survey found 72% of construction PM professionals already use AI at least weekly, yet only 9.3% use AI agents today, while 46.3% plan to. That gap is where the next wave of efficiency gains will come from.

4. The labor shortage makes efficiency non-negotiable

AGC reports that 53% of firms expect hiring craft workers to stay difficult or get harder, even as 63% plan to add workers. When you can't simply hire your way to more capacity, every hour you give back to an estimator, project manager or office coordinator directly increases what your company can deliver.

5. Trust is the #1 barrier, and it's solvable

The top reason construction teams hold back on AI is accuracy and trust (29.6%), followed by lack of understanding (15.7%), tool integration issues (13.9%) and skills gaps (13.0%). Notably, cost was cited by just 3.7%.

That's why we design every AI system with:

  • Human review and approval steps on anything that leaves the company
  • Source references so users can verify every answer
  • QC checks tuned to construction data (quantities, specs, dates, dollars)
  • Integration with the tools your team already uses
  • Hands-on training so staff understand what the AI does and doesn't do

6. Seven practical ways contractors are using AI right now

  • Automated reporting: weekly project, production and owner reports built automatically
  • Document search: ask questions of plans, specs and contracts in plain English
  • RFI and submittal assistance: draft, check and route faster
  • Estimating and takeoff support: quantity extraction, material lists and estimating QC
  • Lead response: instant follow-up, qualification and appointment booking
  • Daily logs and field reports: summarized and routed to the right people
  • Internal knowledge assistants: answers from your SOPs, safety manuals and past projects

7. How to get started (without a giant software project)

  1. Pick one painful, repetitive process with clear inputs and outputs.
  2. Measure it: who does it, how often and how many hours it takes.
  3. Prototype a focused automation or AI agent and test it with real work.
  4. Roll it out and train the people who'll use it.
  5. Expand to the next process once the first win is proven.
Not sure which process to start with? That's exactly what our free consultation is for. Tell us what's slowing your team down →

Frequently asked questions

How are construction companies using AI in 2026?

The most common uses are office and administrative work (45% of contractors per AGC), estimating (23%) and design or preconstruction (20%). Project professionals see the most value in reporting, document management, cost forecasting and contract administration.

What is the biggest barrier to AI adoption in construction?

Accuracy and trust. In Mastt's 2026 survey, 29.6% of construction project professionals named accuracy and trust concerns as the top barrier, ahead of lack of understanding, integration issues and skills gaps.

Where should a contractor start with AI?

Start with one repetitive, high-volume process that has clear inputs and outputs, such as weekly reporting, document search, lead follow-up or material list creation, and measure the hours saved before expanding.

Will AI replace construction staff?

No. With most firms struggling to hire, AI is being used to remove repetitive admin work so existing estimators, PMs and office staff can handle more projects and focus on judgment-heavy work.

Sources

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