AI and automation poised to transform construction amid digitization gaps

Construction faces rapid tech change as digitization gaps and legal disputes surface

Key findings: A new industry report shows that construction — which accounts for roughly 13% of global GDP — is on the cusp of major change driven by artificial intelligence and automation, but still suffers from widespread low digitization and routine inefficiencies. At the same time, a federal lawsuit alleges improper transfer of confidential materials between competing software firms, and a separate vendor announced a cloud-native model-checking tool that plugs into major construction platforms.

Most important details first

The inaugural industry study, based on surveys of more than 1,200 construction decision-makers across eight countries, finds that many builders have not yet moved away from paper. Roughly 40% of firms still use paper-based methods as a norm. The research measures everyday project losses — about 18% of project time is spent searching for data and another 28% is lost to rework — and flags those areas as ripe for digital fixes. A majority of surveyed leaders expect automation to disrupt the sector within the next five years, and more than 80% say connected historical data is crucial to success.

Legal action and industry friction

Separately, one major software vendor has filed a federal lawsuit alleging that a former employee transferred thousands of confidential documents, including source code and customer data, to a competing platform. The complaint, filed in the U.S. District Court for the Northern District of California under case number 3:24-cv-07457, seeks monetary damages and a court order to block use of the alleged trade secrets. The accused company denies the claims and says it intends to defend itself vigorously.

New tools arrive as companies push integration

A cloud-native model checker designed for architecture, engineering and construction professionals has been launched with integrations into leading construction platforms and common authoring tools. The new tool, now rolling out in the United States, the United Kingdom and Ireland, aims to simplify model quality checks for users of common BIM software and cloud project platforms, and follows a recent acquisition that brought cloud-based model-quality tech into the vendor’s portfolio.

Context and implications

The field is widely described by analysts as one of the least digitized globally, leaving what the report calls plentiful “low-hanging fruit” for technology adoption. Industry spending on construction-related goods and services totals an estimated $10 trillion annually, and some analyses place the productivity gap opportunity in the sector at roughly $1.6 trillion. Those figures highlight a large addressable market for software and automation, especially solutions that reduce time lost to searching for information and redo work.

Workforce and skills

Industry demographics add urgency. Almost a quarter of a million construction workers are expected to retire over the next decade, intensifying the need to train new hires and make digital fluency a core jobsite skill. Report authors stress that technology should augment, not replace, skilled workers; human expertise remains central to applying automated insights on complex sites. The study points to benefits such as optimized task scheduling, better workforce allocation, improved resource planning, and reduced cost exposure to material-price swings and tariff risks.

Market players and reactions

The software market for construction continues to evolve. One high-growth cloud software company focused on construction showed rapid expansion in past years but is now experiencing decelerating growth. Market observers previously noted the appeal of horizontal SaaS plays into construction but warned of cyclicality in the construction cycle. Other industry information providers and newsletters continue to publish analysis and product announcements, offering free and paid content to investors and professionals tracking the sector.

What to watch next

• Legal proceedings in the federal trade-secret case, including motions and potential injunctive relief.
• Rollout and adoption rates for new AI and automation tools that target time lost to data search and rework.
• Hiring and reskilling programs tied to rising demand for digital fluency on jobsites.
• Further integrations between cloud construction platforms and model-checking or BIM-quality tools.

For readers who want the full data and methodology from the industry study, the report is available for download on the vendor’s public site.