Construction industry turns to AI to cut costs, improve efficiency and reduce risks

According to AI in Construction: Measurable Results, Unclear Benchmarks, a study by Berkeley Research Group (BRG), 67% of companies that have adopted AI applications report cost savings of more than 10% during the construction phase. Similar results have been recorded in administrative and operational functions (62%), as well as in pre-construction and post-construction activities (58%).

The study suggests that artificial intelligence is beginning to have a substantial impact on the financial performance of construction projects, not only through task automation but, more importantly, by improving planning, predicting risks and reducing errors that lead to budget overruns and schedule delays.

The research was conducted in July 2026 among 109 senior executives from construction companies and real estate development firms across North America, Europe and Asia-Pacific. The main findings relate to the North American sample, while regional comparisons are presented separately.

Millions in Investment, but Limited Integration

Despite the encouraging results, a significant gap remains between investment in AI and its practical implementation.

In North America, 68% of companies have invested at least $250,000 in artificial intelligence applications over the past two years, while 37% have allocated more than $1 million. A further 11% have invested at least $5 million.

However, only 15% report having fully integrated AI into their projects and operations. Approximately 29% expect to complete the integration process within the next 12 months, while another 31% anticipate achieving this goal within one to two years.

A shortage of specialised personnel, difficulties integrating systems and the quality of available data are among the most significant barriers to adoption.

AI Creates the Greatest Value Before Construction Begins

One of the study’s key findings is that artificial intelligence can generate value long before work begins on a construction site.

Already, 58% of companies use AI applications for planning and feasibility studies, with the figure rising to 80% among construction firms.

Applications include cost estimation, the evaluation of alternative design solutions, financial viability analysis, the identification of design clashes and the prediction of supply chain problems.

During the construction phase, the technology is used to monitor progress, forecast delays, allocate resources and oversee safety.

The significance of these applications extends beyond reducing the time required to complete individual tasks. The ability to identify a design error or a potential delay at an early stage can prevent additional expenditure, contract revisions and losses that affect the overall return on investment.

AI Is Reshaping Jobs and Workforce Structures

The study also challenges the assumption that the adoption of artificial intelligence automatically leads to job cuts.

Only 11% of companies report having reduced their workforce in specific areas as a result of the technology, while 18% have increased their headcount.

Instead, the most significant changes have occurred in internal organisational structures. Some 46% of companies have restructured their teams, 38% have undertaken staff retraining, and 29% have created new professional roles.

At least at this stage, AI appears to be transforming tasks involving information processing, design, contract management and scheduling, rather than replacing the workforce required for the physical construction of projects.

Europe Focuses on Property Management

The differences between geographical markets are also noteworthy.

In North America, AI applications are concentrated primarily on the planning and execution of construction projects. In Asia-Pacific, greater emphasis is placed on administrative functions, procurement and risk management.

In Europe, by contrast, the highest level of adoption is recorded in the post-construction phase, where 41% of companies use AI applications for property monitoring and management.

At the same time, full integration remains less widespread in the European market, standing at 9%, compared with 15% in North America and 18% in Asia-Pacific.

Measuring Real Returns Is the Next Challenge

Despite the significant cost savings reported, assessing the overall financial contribution of artificial intelligence remains a challenge.

Some 37% of companies evaluate their investments using financial indicators, such as cost reductions and improved profit margins. A further 29% rely on operational metrics, including productivity, adherence to project schedules and reductions in rework.

However, as BRG researchers point out, the technology’s true value may lie in expenditure that is avoided and risks that are addressed before they translate into financial losses.

Meanwhile, the growing use of AI is creating new issues relating to contractual and professional liability. Some 43% of respondents identify liability for potential errors as a key constraint, while only 42% report having policies in place covering human oversight and accountability.