Artificial intelligence may be reshaping industries across the Canadian economy, but the nation’s construction sector is still in the early stages of its AI journey, a number of reports conclude.
Despite the promise, construction continues to lag behind industries such as finance and insurance, scientific and technical services and information and cultural services when it comes to AI adoption.
An AI in Construction Report 2026 prepared by Vancouver-based consulting firm Scius Advisory and authored by researcher Rachelle Hendrickson found while adoption levels in construction remain notably lower than in many other sectors, momentum is beginning to build.
The report found growing investment, increasing awareness of AI’s potential and rising pressure to improve productivity are helping push the industry toward broader acceptance of the technology.
The intention to adopt AI software increased from eight per cent of construction companies in the second quarter of 2024 to 9.6 per cent in the second quarter of 2025, and the intention to adopt AI hardware increased from 2.8 to 3.6 per cent in the same time frame. However, the report indicates those numbers are substantially lower than those of many other industries.
According to the report, AI and machine-learning systems can assist with safety management, cost forecasting, scheduling, quality control, supply chain logistics, risk management, dispute resolution and sustainability analysis.
AI integrated with Building Information Modelling (BIM) can streamline workflows and improve project management, while AI-powered robotics offer opportunities to address labour shortages and accelerate project delivery.
For smaller contractors, the appeal may be even greater.
Automation of administrative tasks could reduce overhead and free staff to focus on revenue-generating work.
Among the most significant barriers identified in the Scius report is a lack of knowledge and expertise surrounding AI technology.
Many construction firms lack employees with the technical skills needed to evaluate, implement and manage AI-powered tools. At the same time, Canada’s AI development sector continues to face talent shortages, making it difficult to scale solutions tailored specifically to construction.
The industry’s culture presents another hurdle.
Many interview participants cited resistance to organizational change as one of the biggest obstacles facing AI adoption, as construction has traditionally relied heavily on established practices and proven methods – a mindset that can make firms reluctant to embrace new technologies.
The industry’s structure also complicates adoption efforts. Construction is dominated by small and medium-sized businesses that often lack the time, financial resources and internal expertise necessary to implement new digital systems.
Meanwhile, high upfront costs remain a significant concern, particularly for smaller contractors.
Advanced AI solutions require investments in software, training, integration and cybersecurity infrastructure.
While larger national and international firms often possess dedicated research and development teams and technology budgets, smaller companies frequently struggle to justify the expense despite the potential long-term benefits.
Concerns around cybersecurity and intellectual property protection further contribute to industry caution. Construction companies handle substantial amounts of proprietary project information and client data, making data security a critical consideration when evaluating AI platforms.
A global survey by DEWALT indicated the industry remains in the early stages of adoption, with many workers experimenting with AI rather than incorporating it into their daily workflows.
The survey gathered responses from construction professionals across Canada, the U.S., U.K., France, Brazil and Mexico. It found overwhelming confidence in AI’s future role in construction but noted there is a significant gap between enthusiasm and implementation of AI.
Only nine per cent of the respondents indicated they currently use AI as part of their day-to-day work. Most remain in exploratory phases, with 39 per cent piloting AI tools and another 35 per cent actively researching the technology. Sixteen per cent say they are interested in AI but have not yet begun using it.
“The industry’s mindset is ahead of its habits,” the report notes. “Many professionals are already exploring and testing AI tools, but far fewer say AI has become routine in day-to-day work.”
The majority of respondents report feeling positive about AI’s role in construction. However, many of the construction professionals remain cautious about integrating the technology into high-stakes environments like construction where safety, accuracy and accountability are paramount.
Among workers who expressed reservations, the most common issues involved training deficiencies, reliability of AI-generated outputs and data security. Amongst the trades, 23 per cent cited lack of training and skill gaps as their primary concern. Another 23 per cent pointed to accuracy and trust issues, while 20 per cent worried about privacy, cybersecurity and intellectual property risks.
Overall, 35 per cent of respondents were concerned about adopting AI in their work, compared with 45 per cent who reported no concerns and 15 per cent who remained neutral.
However, there are signs that more construction companies will be adopting AI. An earlier survey by KPMG Canada found that, in the face of growing pressure to build more, faster, nine in 10 Canadian construction leaders believe the industry must move quickly to embrace new and advanced technologies, with most saying digital tools are already starting to boost their productivity.
The report found 90 per cent of construction leaders believe advanced digital technologies such as AI, analytics, BIM and digital twins can improve productivity and labour effectiveness and nearly 80 per cent say procurement processes are evolving to encourage innovation and digital adoption.
