A new report from ServiceTitan finds artificial intelligence (AI) adoption is accelerating across commercial construction, with more contractors reporting measurable business impact from the technology.
The company’s 2026 Commercial Specialty Contractor Industry Report, based on a survey of more than 1,000 industry leaders, found 38% of contractors now see measurable results from AI, up from 17% in 2025. Contractors are applying AI in areas such as cost estimating (24%) and bid management (22%), with many expecting broader use across the project lifecycle.
The report also points to steady demand heading into 2026. Forty-one percent of contractors said they are optimistic about market conditions, while more than three-quarters reported at least nine months of backlog.
At the same time, cost pressures continue to mount. Rising wages, higher material costs and ongoing labor shortages are affecting profitability, with 71% of contractors reporting increased wages compared with 55% the previous year.
As a result, contractors are placing greater emphasis on profitability and cash flow. Many are working to improve billing timelines, manage labor costs and align expenses with payment schedules. The report found 67% of firms are using lines of credit to fund materials, while 56% are negotiating extended supplier terms.
Technology adoption is also evolving as contractors look to improve efficiency. Only 20% of firms report operating on a single platform, highlighting an opportunity to consolidate systems across accounting, project management and estimating to improve visibility and streamline operations.
