New Study Highlights Contractors’ Optimism About AI’s Transformative Role in the Construction Industry
Dodge Construction Network , in collaboration with CMiC, has released a comprehensive new research report titled AI for Contractors, which explores the growing impact of artificial intelligence (AI) on the construction sector. The study reveals a striking optimism among contractors, with 87% of respondents believing that AI will significantly reshape the industry. Many predict that AI adoption will lead to far-reaching transformation across construction operations, project management, and organizational strategy.
“For decades, construction firms have collected vast amounts of data but lacked the tools to convert that data into actionable insights,” says Gord Rawlins, president and CEO of CMiC. “AI-enabled solutions are changing this dynamic. Our research highlights the high-impact results contractors are achieving today, including 92% effectiveness in automated proposal generation and 86% in contract risk review. These figures reflect real-world outcomes experienced by our customers and peers across the industry.”
From Task-Doers to Strategic Decision-Makers
Contractors see AI as a catalyst for elevating the role of project managers from administrative task execution to strategic decision-making. By leveraging predictive insights rather than reacting to challenges after they arise, project managers can optimize scheduling, control costs, and enhance project delivery quality.
Key findings include:
- 85% of contractors expect to spend less time on repetitive, mundane tasks.
- Over 70% believe AI will enable them to make better decisions by offering insights they might not otherwise identify.
- 75% anticipate learning from past projects by analyzing historical data with AI tools.
This shift signals a major evolution in the construction workforce, moving professionals toward higher-value, strategic responsibilities that support smarter, more efficient operations.
Organizational Readiness for AI
Although adoption is still in its early stages, more than half of surveyed companies are actively exploring AI through pilot programs and preparing their teams for AI-related roles. Specifically:
- 40% are allocating dedicated budgets for AI initiatives.
- 38% are forming dedicated AI implementation teams.
- 19% are adapting legacy workflows to integrate AI technologies.
- 51% are evaluating multiple potential AI-related changes across their organizations.
These figures indicate a growing recognition that AI is not just a tool but a strategic investment that requires planning, training, and organizational alignment to maximize its benefits.
Positive Outcomes from Early Adopters
Even with relatively low current adoption, early adopters report highly favorable outcomes. Although only 20% to 50% of contractors are aware that specific project and company management functions are AI-enabled, usage remains limited, with fewer than 15% of contractors employing 20 of the 23 functions studied. Nevertheless, more than 70% of contractors using AI-enhanced tools report that these solutions are significantly more effective compared to traditional methods, paving the way for broader industry adoption in the near future.
AI Capabilities Generating Interest
Contractors expressed strong interest in AI functionalities across project and company management domains:
Project Management:
- 81% recognize the value of automated constructability analysis to identify potential field issues during the design phase.
- 80% are interested in intelligent permit submission tools that automatically check for compliance.
- 79% see potential in autonomous project optimization that adjusts schedules and resources in real-time.
Company Management:
- 76% identify dynamic pricing optimization based on market conditions and risk factors as highly beneficial.
- 92% see clear advantages in automated contract creation and management.
- 79% value intelligent bid/no-bid decision support tools.
These findings underscore the multifaceted ways AI can support both operational efficiency and strategic decision-making across construction enterprises.
Concerns and Challenges
Despite widespread optimism, contractors also express concerns about AI adoption. Over half cite data accuracy (57%) and data security (54%) as major issues, while more than one-third worry about implementation costs and internal resistance.
A critical barrier to wider AI adoption is the state of data quality: only 26% of contractors rate their current data quality as high. Inaccurate or incomplete data can limit AI’s effectiveness, making careful data management a prerequisite for successful implementation.
Steve Jones, Senior Director of Industry Insights Analytics at Dodge, emphasizes, “We designed this study to examine AI within the digital tools already deployed by contractors, as this may provide the best path to overcoming data quality challenges. It’s encouraging to see that contractors understand these key challenges and the importance of a rigorous approach to implementing AI successfully.”
The study clearly indicates that AI has moved from a futuristic concept to a practical tool delivering measurable benefits for construction firms. Early adopters are already realizing efficiencies, predictive insights, and improved project outcomes, while a growing number of companies are planning to scale AI use in the near term.
As the construction industry faces increasing pressure to improve productivity, reduce costs, and enhance project quality, AI stands out as a transformative enabler. By combining automation, predictive analytics, and intelligent decision-making, contractors can position themselves to navigate the evolving industry landscape more effectively.
In summary, AI for Contractors highlights that while challenges remain—particularly around data quality, costs, and adoption readiness—contractors are overwhelmingly optimistic about AI’s potential. With strategic planning, workforce preparation, and ongoing technology integration, AI is poised to redefine construction management, delivering tangible value to firms, project teams, and clients alike.
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