How Many Construction Firms Aren't Using AI?! RICS AI in Construction 2025 Report

James Garner
1 day ago
4 min read

A staggering 45% of construction firms report using no AI at all, yet nearly 70% of managers believe it’s the key to delivering greater value. What’s wrong with this picture?

A Chasm Between Ambition and Reality

The construction industry is standing at a precipice. On one side lies a future transformed by Artificial Intelligence, a world of optimised schedules, predictive risk management, and hyper-efficient design. On the other lies the stark reality of where we are today. According to the Royal Institution of Chartered Surveyors' (RICS) landmark AI in Construction 2025 report, the gap between the industry’s ambition and its current capabilities is dangerously wide.

The report, which surveyed over 2,200 professionals globally, paints a picture of overwhelming optimism. Nearly 70% of project managers and quantity surveyors are confident that AI will be instrumental in helping them deliver greater value. They see its potential to revolutionise everything from initial design to final cost control. Yet, this bright vision is clouded by a sobering statistic: 45% of their organisations have zero AI adoption, and a minuscule 1% have managed to scale AI across their projects [1]. This isn’t just a gap; it’s a chasm. The industry is dreaming of a high-tech future while still struggling to leave the analogue past behind.

The Three-Headed Dragon Guarding Progress

Why is an industry so convinced of AI’s potential so slow to adopt it? The RICS report identifies three critical barriers that are holding back progress, a three-headed dragon that project leaders must slay to move forward.

First and foremost is the skills shortage. A massive 46% of firms cited a lack of skilled personnel as the primary obstacle [2]. There simply aren’t enough people who understand both the nuances of construction and the complexities of AI. This isn’t just about hiring a few data scientists; it’s about upskilling the entire workforce, from the site manager to the quantity surveyor, to work with and trust AI-driven insights. Without this fundamental investment in people, any investment in technology is doomed to fail.

Second is the challenge of system integration. 37% of respondents pointed to the difficulty of making new AI tools work with their existing, often antiquated, software systems [2]. The construction industry is notorious for its fragmented technology landscape, a patchwork of incompatible tools that create data silos and prevent a holistic view of a project. Dropping a sophisticated AI platform into this environment is like fitting a Formula 1 engine into a horse-drawn cart. It won’t work without a fundamental overhaul of the underlying infrastructure.

Finally, there’s the persistent problem of poor data quality. 30% of firms admitted that the data they collect is not good enough to power effective AI [2]. AI is not magic; it is a voracious consumer of data. If you feed it incomplete, inaccurate, or inconsistent information, you will get unreliable results. The old adage of “garbage in, garbage out” has never been more relevant. Before firms can even think about advanced AI, they must get their data house in order, establishing clear standards for data collection, management, and governance across the entire project lifecycle.

As Anil Sawhney, Head of Sustainability at RICS, bluntly puts it: “To achieve tangible progress, our sector must focus on high-quality data, compelling value propositions, organisational readiness and strong leadership to champion the responsible use of AI.” [1]

The Peril of Unprepared Investment

Perhaps the most alarming finding in the report is the disconnect between investment and readiness. A quarter of all firms are planning to increase their spending on AI in the next year [1]. While this sounds positive, it raises a critical question: are they throwing good money after bad? Investing in AI without addressing the fundamental barriers of skills, integration, and data is a recipe for disaster. It leads to expensive pilot projects that go nowhere, disillusioned teams, and a cynical view of technology that can set a firm back for years.

This isn’t to say that firms shouldn’t invest in AI. They absolutely must. But that investment must be strategic. It must start with people and processes, not just technology. It requires a clear roadmap, a realistic assessment of organisational readiness, and a commitment to building a data-driven culture from the ground up.

Maureen Ehrenberg, acting President-Elect at RICS, captures the challenge perfectly: “The challenge now is to ensure AI is adopted responsibly, ethically and in ways that deliver real public good.” [1]

A Call to Action

The RICS report is not a message of despair. It is a wake-up call. The potential of AI to transform the construction industry is real and immense. But potential alone does not build skyscrapers or deliver complex infrastructure projects. The report highlights a clear path forward: a collaborative effort between industry, government, and professional bodies to create clear roadmaps, establish ethical guardrails, and, most importantly, launch massive upskilling initiatives.

For project delivery professionals, the message is personal. You are on the front lines of this transformation. You cannot afford to wait for a top-down mandate. You must become the champion for a smarter, more data-driven approach to project delivery within your own organisation. You must demand better data, advocate for training, and push for the integration of systems. The AI revolution is coming, but it won’t happen by itself. It will be built, project by project, by leaders who have the foresight to prepare for it.

Is your organisation ready for the AI revolution, or is it at risk of being left behind? The time to act is now. Subscribe to Project Flux for the critical insights and practical guidance you need to navigate the AI transformation and lead your projects into the future.