Data Reveals the Biggest Motivators and Challenges to AI Adoption in Construction
The majority of the construction industry is embracing artificial intelligence, albeit at varying levels of implementation, but significant challenges remain that may ultimately stunt adoption rates, according to the 2025 Annual AI Benchmarking Report from BuiltWorlds.
Nearly two-thirds of respondents to the 2025 AI Benchmarking Survey—the source of data upon which this latest report was built—described their company’s AI maturity level as at least “average,” with 22% calling it “above average.” The findings, according to the report, suggest that “companies are experimenting with AI tools but have not yet achieved broad integration into core workflows.”
That assessment was further reinforced when respondents were asked, “Is AI a core strategic focus company-wide?” Thirty-five percent reported that their company had yet to fully embrace AI but were actively exploring its potential; thirty-three percent reported that it was a core strategic focus but was limited to specific departments or initiatives; and 27% reported that the technology was indeed central to the company’s overall strategy. Only 4% of respondents said, “No, AI is currently not a core strategic focus for us.”
AGC
Minority Of Metro Areas Add Construction Jobs From August 2024 To August 2025 As Tariffs, Worker Shortages, Financing Costs Slow Demand
For the first time since 2021, fewer than half of the nation’s metro areas added construction jobs between August 2024 and August 2025, according to an analysis by the Associated General Contractors of America of new government employment data. Association officials noted that many private-sector developers appear to be putting projects on hold amid rising prices caused by tariffs, workforce shortages and higher interest rates.
“Construction employment has stalled or retreated in more and more areas as owners pull back on projects in the face of higher costs,” said Ken Simonson, the association’s chief economist. “Workforce shortages, tariffs and higher interest rates are inflating construction costs and schedules to the point where many projects no longer appear to make sense to developers.”
Only 177 metro areas or 49 percent added construction employees between August 2024 and August 2025. For the sixth-straight month, Arlington-Alexandria-Reston, Va.-W.Va. added the most construction jobs (8,200 jobs or 9 percent). The neighboring Washington, D.C.-Md. area was in second place with a gain of 6,600 jobs or 14 percent—the largest percentage increase of any area. Kokomo, Ind. also had a 14 percent gain, adding 300 construction jobs over 12 months.
Construction employment declined over the year in 125 metro areas and was unchanged in 58 areas. The largest job loss occurred in New York City (-7,900 jobs, -5 percent), followed by Riverside-San Bernardino-Ontario, Calif. (-6,500 jobs, -6 percent); Los Angeles-Long Beach-Glendale, Calif. (-6,000 jobs, -6 percent); and Baton Rouge, La. (-5,700 jobs, -11 percent). The largest percentage decrease occurred in Baton Rouge, followed by Lake Charles, La. (-9 percent, -1,000 jobs) and two areas with losses of 8 percent (-100 jobs): Walla Walla, Wash. and Hanford-Corcoran, Calif.
A separate government report showed there were 188,000 job openings in construction, seasonally adjusted, at the end of August—a 38 percent decline from a year earlier and the lowest total since 2017. This decline suggests even fewer areas are likely to have construction employment increases in the near future, Simonson said. A prolonged federal shutdown could also impact construction employment if public works projects are suspended or fail to get needed approvals to start because federal officials are unavailable to sign off, he added.
Association officials urged the administration and Congress to quickly resolve the spending dispute to avoid significant impacts on many infrastructure and public works projects. They also urged federal officials to address labor shortages by passing short-term relief measures like the Essential Workers for Economic Advancement Act and the Dignity Act and boost federal funding for construction education and training.
“With the Fed lowering interest rates, now is the time to address workforce shortages and provide tariff relief to boost demand for construction,” said Jeffrey D. Shoaf, the association’s chief executive officer. “In addition, avoiding the kind of prolonged federal shutdown that will undermine necessary approval processes that can slow down the delivery of necessary public works projects.”
View the metro employment data by state, by rank and top 10 changes.
| ABC: Construction Backlog Stable; Contractors Remain Optimistic, Fueled by Data Center Growth | |
| Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.5 months in September, according to an ABC member survey conducted Sept. 22 to Oct. 6. The reading is down 0.1 months since September 2024.View ABC’s Construction Backlog Indicator and Construction Confidence Index tables for September. View the full Construction Backlog Indicator and Construction Confidence Index data series.
Over the past year, backlog has declined in the commercial and institutional and heavy industrial categories, while it has increased substantially in the infrastructure category. ABC’s Construction Confidence Index reading for sales declined in September, while the readings for profit margins and staffing both increased. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months. “Falling industrywide employment, a dearth of job openings and ongoing decreases in construction spending have not diminished ABC contractor member backlog or confidence,” said ABC Chief Economist Anirban Basu. “This stability primarily stems from two sources. First, public sector activity has held up far better than its private counterpart, and that is supporting elevated backlog in the infrastructure category. “The second source of industry momentum is, unsurprisingly, data centers,” said Basu. “Approximately 1 in 5 contractors was under contract to work on a data center project in September. While that’s a slightly lower share than in August, contractors that have data center work had significantly higher backlog (12.0 months) than those who did not (8.0 months).” How Field Technology Is Transforming Construction Jobsites: ABC Unveils 5th Annual Tech ReportAssociated Builders and Contractors released its fifth annual construction technology report, the ABC Field Tech Report, which highlights the tools and innovations shaping project sites, showcasing the possibilities and opportunities when technology transforms construction in the field. “In this report, we see how field technology can close the gap between off-site strategies and jobsite activity,” said Patrick Irwin, chair The ABC Field Tech Report includes an executive summary of the field tools and innovations from ABC strategic partner Milwaukee Tool and insights from Tech Alliance members and Dodge Construction Network. Visit abc.org/techreport to read the digital report and watch a video with highlights of the report. |
