Builders Pour Money Into AI, but Few Have Fully Integrated It

Construction companies facing labor shortages, tight margins and more complex projects are spending heavily on artificial intelligence. A new survey from consulting firm BRG suggests the money is producing measurable savings, even as many firms are still working out where AI fits and how to measure its returns.

The report, “AI in Construction: Measurable Results, Unclear Benchmarks,” surveyed more than 100 industry executives. Nearly 68% reported spending at least $250,000 on AI during the past two years, including 37% who invested $1 million or more. Just 15% said AI was fully integrated across projects and operations.

Adoption extends across the project lifecycle, with 49% using AI during construction, 46% in preconstruction, 43% in business operations and 40% after construction.

Planning and feasibility was the most common use, at 58% of respondents and 80% of builders.

“Planning and feasibility are a natural starting point for builders because that is where much of the project risk sits,” said Dara Hendrix, a managing director at BRG.

Cost savings of 10% or more were widespread. Sixty-seven percent reported them during construction and 62% in business operations. Nearly 20% reported post-construction savings of more than 30%.

So far, AI is changing how teams are organized more than how many people they employ. Only 11% have cut staff because of AI, while 18% have added staff in some areas. More than half have changed how much they rely on outside vendors and contractors.

The biggest obstacles are a lack of skilled talent, cited by 40%, and limited relevance to their work, at 38%. The top risk concern is liability for errors in AI-generated work, at 43%. Yet only 42% said their policies address human oversight and accountability.

Measuring returns is also uneven. Thirty-seven percent rely mainly on financial metrics, while 6% don’t measure return on investment at all.

“If you focus too narrowly on ROI, you risk missing out on broader changes,” said Travis Olson, a director at BRG.