Canadian Construction Sector Grapples with AI Adoption as Industry Begins to Shift

📅 2 weeks ago

A recent report highlights the slow adoption of AI within the Canadian construction industry, despite rising interest and potential benefits. While awareness grows, significant barriers remain, including a lack of technical expertise and resistance to change.

Artificial intelligence is poised to transform various sectors of the Canadian economy, yet the construction industry finds itself trailing behind other fields such as finance, insurance, and technical services in terms of AI adoption. According to a report titled "AI in Construction Report 2026" from Vancouver-based consulting firm Scius Advisory, authored by researcher Rachelle Hendrickson, construction is still in the nascent stages of integrating AI technologies into its operations. Although current adoption rates are significantly lower compared to other industries, the report notes that momentum is starting to build within the sector.
The report indicates that factors such as increased investment in AI, heightened awareness of its potential, and mounting pressure to enhance productivity are driving the industry towards broader acceptance of AI technologies. The intention to adopt AI software among construction firms rose from eight percent in the second quarter of 2024 to 9.6 percent by the second quarter of 2025. Similarly, the intention to adopt AI hardware saw an increase from 2.8 percent to 3.6 percent during the same period. However, these figures remain considerably lower than those reported in many other sectors.
AI and machine-learning systems have the potential to revolutionize various aspects of construction, including safety management, cost forecasting, scheduling, quality control, supply chain logistics, risk management, dispute resolution, and sustainability analysis. The integration of AI with Building Information Modelling (BIM) could streamline workflows and enhance project management. Additionally, AI-powered robotics may help address labor shortages and expedite project delivery. For smaller contractors, the benefits of automation in administrative tasks could lead to reduced overhead costs and allow staff to concentrate on revenue-generating work.
Despite these promising developments, the Scius report highlights significant barriers that hinder AI adoption in construction. A major obstacle is the lack of knowledge and expertise related to AI technology, with many construction firms lacking employees who possess the necessary technical skills to assess, implement, and manage AI-powered tools. At the same time, the Canadian AI development sector is grappling with talent shortages, complicating the scaling of solutions tailored to the construction industry.
Cultural resistance within the industry also poses a challenge. Many interview participants in the report identified organizational inertia as a key barrier to AI adoption, as construction has historically relied on established practices and methodologies. This mindset can lead to reluctance in embracing new technologies. Furthermore, the industry's structure, which is largely dominated by small and medium-sized enterprises, often results in a lack of time, financial resources, and internal expertise needed to implement advanced digital systems.
High upfront costs associated with advanced AI solutions remain a significant concern, particularly for smaller contractors. Investments in software, training, integration, and cybersecurity infrastructure can be daunting for these firms. Larger national and international companies typically have dedicated research and development teams and technology budgets, while smaller companies often struggle to justify these expenses despite the potential long-term advantages.
Concerns regarding cybersecurity and the protection of intellectual property further contribute to the industry's cautious approach to AI integration. Construction firms manage substantial amounts of proprietary project information and client data, making data security a critical consideration when evaluating AI platforms. A global survey conducted by DEWALT revealed that the construction industry remains in the early stages of AI adoption, with many workers experimenting with AI rather than incorporating it into their daily workflows. The survey, which included responses from construction professionals across Canada, the U.S., U.K., France, Brazil, and Mexico, found a strong belief in AI's future role in the sector but highlighted a significant gap between enthusiasm and actual implementation.
Only nine percent of respondents reported using AI as part of their everyday work. Most are still in exploratory phases, with 39 percent piloting AI tools and another 35 percent actively researching the technology. Sixteen percent expressed interest in AI but have yet to begin using it. The report emphasizes that while the industry’s mindset regarding AI is advanced, its practical application lags behind. Many professionals are already testing AI tools, yet far fewer report that AI has become a routine component of their daily operations.
The majority of respondents expressed optimism about AI's potential in the construction field; however, many remain cautious about its integration into high-stakes environments where safety, accuracy, and accountability are crucial. Among those who voiced concerns, the most common issues included training deficiencies, reliability of AI-generated outputs, and data security risks. Among tradespeople, 23 percent highlighted a lack of training and skill gaps as their primary concern, while another 23 percent pointed to issues of accuracy and trust. Concerns about privacy, cybersecurity, and intellectual property risks were cited by 20 percent of respondents. Overall, 35 percent of participants expressed concerns about adopting AI in their work, compared to 45 percent who reported no concerns and 15 percent who remained neutral.
Despite these reservations, indications suggest that more construction companies are poised to adopt AI technologies. An earlier survey by KPMG Canada revealed that, in light of increasing pressure to deliver projects more quickly, nine out of ten Canadian construction leaders believe the industry must rapidly embrace new and advanced technologies. The majority of these leaders indicated that digital tools are already beginning to enhance their productivity, with 90 percent believing that advanced digital technologies, including AI, analytics, BIM, and digital twins, can improve productivity and labor effectiveness. Additionally, nearly 80 percent noted that procurement processes are evolving to foster innovation and digital adoption.

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