US Construction Firms Increase AI Spending in 2025 Outlook
A survey of over 1,100 construction firms reveals a growing reliance on AI and cloud technology to combat labor shortages and operational inefficiencies.
The annual Construction Hiring and Business Outlook survey, conducted by the Associated General Contractors of America (AGC) in partnership with Sage, highlights a shift toward automated solutions in the construction sector. While firms express optimism for public-funded projects, they report significant concerns regarding labor availability and rising material costs.
Technology investment remains a critical focus, with 44% of companies planning to increase their spending on artificial intelligence. Other priority areas include document management, accounting, and project management software. Most firms intend to maintain or increase their existing software budgets, signaling a commitment to digital transformation.
Cloud-based and mobile technology adoption remains consistent, with project management tools leading the shift toward cloud hosting. Nearly 70% of respondents use mobile software for daily field reports, underscoring the demand for real-time data access in the field.
Despite the digital push, IT implementation remains difficult. Securing company data against cyber threats was cited as the primary IT challenge (41%), followed by the time required for staff training and general resistance to new technology among employees.