A new industry report from Dodge Construction Network (Dodge), developed in partnership with CMiC, shows widespread optimism among contractors about the growing influence of artificial intelligence across the construction sector. The newly released AI for Contractors study highlights that 87% of contractors believe AI will have a meaningful impact on their business, signaling accelerating momentum for digital transformation even as adoption remains in the early stages.

According to the report, the construction industry—long challenged by fragmented data, labor shortages, cost pressures, and schedule risk—is now primed for an operational reset powered by AI-driven tools. These tools are already proving their value across project management, estimating, field coordination, and risk assessment.

“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.”

AI Shifts Construction Roles Toward Strategic Decision-Making

Contractors report that AI is expected to streamline repetitive tasks, reduce administrative burdens, and support more predictive and informed decision-making. Many believe AI will elevate project management roles from task-based oversight to strategic planning.

Key findings include:

• 85% expect to spend less time on repetitive, manual tasks.
• Over 70% believe AI will help them make better decisions by surfacing insights they may overlook.
• 75% expect AI to mine historical project data to generate lessons learned and continuous improvement insights.

These shifts suggest a future in which project managers rely on AI to anticipate risks, adjust schedules, and optimize resources in real time—capabilities that are difficult to achieve with traditional tools.

Adoption Is Gradually Increasing as Companies Prepare Their Teams

Despite high optimism, adoption lags behind awareness. Many contractors acknowledge they are still in exploratory phases, preparing their organizations for broader AI integration.

The report found that:

• 40% are allocating budget toward AI.
• 38% are setting up dedicated AI implementation teams.
• 19% are modernizing legacy workflows to support AI-driven processes.
• 51% are actively evaluating multiple AI-related changes across their organization.

These steps point to a deliberate and structured ramp-up, recognizing that successful AI adoption requires clean data, standardized processes, and trained staff.

Early Adopters Report Strong Results Across Key Functions

Although only a small portion of the industry is using AI-enabled functions today—often less than 15% for each of the 23 project and management tasks examined—the contractors who have adopted these tools report high satisfaction. More than 70% say AI improves effectiveness relative to traditional methods.

This early validation is a major driver behind the rising confidence that AI will soon become standard across construction operations.

AI Capabilities Contractors Want Most

The study highlights several high-interest areas where contractors see immediate value:

Project Management

• 81% — automated constructability analysis to flag design issues before construction
• 80% — intelligent permit submission with built-in compliance checks
• 79% — autonomous project optimization that adjusts schedules and resources in real time

Company Management

• 76% — dynamic pricing optimization informed by market conditions
• 92% — automated contract creation and management
• 79% — intelligent bid/no-bid decision-making support

Ongoing Concerns: Data Quality, Accuracy, and Security

While enthusiasm is strong, contractors remain cautious. Over half worry about data accuracy (57%) and cybersecurity risks (54%). More than one-third see cost of implementation and cultural resistance as barriers. The most significant challenge across the board is poor data quality—only 26% of contractors say their data is currently in strong shape.

“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, Industry Insights Analytics 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.”

A Turning Point for Construction AI Adoption

Jones adds that the momentum of early adopters may signal a broader industry shift. “The research indicates the construction industry is nearing a tipping point for AI adoption,” said Steve 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.”

The full report, AI for Contractors, provides deeper findings on how AI is being incorporated into both project and company management processes.

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Originally reported by Business Wire in Morning Star.