57% of construction businesses are using AI more than they were a year ago, according to the latest State of Trade Survey from the Federation of Master Builders and the Chartered Institute of Building
Among construction businesses already using AI, 80% are deploying it for administration and office tasks, while 42% use it to prepare quotes, estimates and tenders.
A third (33%) use AI in site operations, health and safety and quality management – evidence that firms are turning to technology to improve efficiency and ease pressure on stretched teams, rather than replace skilled construction roles.
Why are more construction businesses now using AI?
The shift comes against a tougher trading backdrop. In the first half of 2026, net workload and employment balances fell, while enquiries dropped.
Skills shortages affected 68% of businesses, with 47% reporting delayed jobs, and three-quarters (75%) said material costs had increased.
One in five construction businesses (20%) also reported project delays linked to extreme weather, including heatwaves and rainfall.
Brian Berry, chief executive of the FMB, stated: “These figures show that AI is becoming a more established part of how construction firms run their businesses, particularly for administration, tender preparation and project management.
But technology is not a silver bullet: more firms reported falls than increases in workloads, enquiries and employment, while rising costs and shortages of skilled tradespeople continue to delay jobs and hold back growth.”
“The government must ensure small firms have the practical support they need to navigate new technology and grow their businesses in the face of wider challenges.”
Dr Victoria Hills, chief executive of the CIOB, added: “Emerging issues like extreme weather extending project timelines are also a big concern. Climate resilience is a matter that desperately needs to be higher up on the industry’s agenda, particularly in light of the prolonged hot weather we experienced this summer, the impact of which will be covered in the next State of Trade report.”
The government must address skills shortages in construction
“The construction sector continues to be an industry where many SMEs have to fight to survive, and this has to change. The latest state of trade report confirms what we hear from our members daily: skills shortages continue to present major challenges,” Hills said.
“Government announcements on interventions like V-levels, vocational GCSEs and more apprenticeships are welcome, but we urgently need more detail on what those will look like.”
She concluded: “This must include how the education sector will be supported to deliver them, and how the construction sector, especially SMEs, will be supported to play its role in providing work placements and teaching expertise.”
