AI Adoption Rapidly Increasing Among Commercial Contractors
AI adoption is accelerating rapidly across the commercial contractor industry according to ServiceTitan’s recently released 2026 Commercial Specialty Contractor Report.
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| To view the full findings and key takeaways, download ServiceTitan’s 2026 Commercial Specialty Contractor Industry Report here. |
The report is based on a survey of more than 1,000 commercial construction leaders.
Results show that 38% of contractors are reporting measurable business impact from AI, up from 17% in 2025.
“The next AI leaders in the commercial and construction markets will be defined by how seamlessly intelligence is embedded across the entire workflow,” said Alex Kablanian, senior vice president and general manager of commercial and construction markets at ServiceTitan. “Companies that unify their systems, sharpen execution, use real-time data to protect margins, and accelerate cash flow will transform operational complexity into a competitive advantage.”
AI is quickly moving from early experimentation to real business results.
Per the report, contractors are applying AI across high-value areas including 24% in cost estimation and budgeting and 22% citing bid management.
However, rather than replacing core systems, many contractors expect AI to play a larger role across the full project lifecycle, beyond just bidding and planning.
According to the ServiceTitan report, 41% of contractors are feeling optimistic about marketing conditions in 2026, while 38% remain neutral.
In addition, more than 75% of respondents reported at least nine months of secured work, including 41% with more than a year of backlog.
Rising labor and overhead costs, skilled labor shortages and increasing material prices continue to put pressure on profitability.
With better visibility into potential future revenue, contractors are focused on profitability in 2026.
According to the survey, top priorities for 2026 include growing revenue through new projects (61%) and increasing overall project margins (45%).
In addition, 57% of firms indicated a focus on improving billing timelines and 38% cited closer management of labor costs.
According to ServiceTitan’s survey, 71% of respondents reported rising wages, up from 55% in 2025.
Based on the overall findings, it appears contractors are adjusting how they are managing cash flow as project costs continue to rise.
The report states that 67% of firms are using lines of credit to fund materials, while 56% are negotiating extended supplier terms to better align costs with payment timelines.
Nearly 60% of firms reported that change orders, which can increase project value by 5 to 20%, are reinforcing the need for stronger documentation and financial oversight. Contractors appears to be increasingly turning to technology to improve that visibility of project performance and financial health.
The report highlights a fragmented technology landscape across commercial construction firms, limiting visibility across projects and financial performance.
Only 20% of contractors report operating on a single platform, while many rely on multiple systems across accounting, project management, and estimating tools.
This creates an opportunity for contractors to consolidate systems and adopt more integrated platforms that streamline workflows and improve operational visibility.
To view the full findings and key takeaways, download ServiceTitan’s 2026 Commercial Specialty Contractor Industry Report here.
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Take a look back at World of Concrete 2026. Also in this issue are Industry Updates.
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