While some sectors have spent recent years sprinting toward digital maturity, construction and engineering organizations are finally crossing a major threshold as the potential of automation and Industrial Artificial Intelligence becomes impossible to ignore.
Faced with tightening margins and complex global pressures on materials and labor constraints, construction and engineering firms are overhauling their traditional value propositions to stay competitive. As 2026 unfolds, the construction sector is reaching a critical tipping point where A.I. and connected data move from the periphery to the core of business operations.
But, as these innovations are scaled, a fundamental issue remains—A.I. is only as powerful as the digital foundation it sits on. To move from a pilot program to enterprise-wide success, leaders must first master the essential building blocks of digital transformation. A.I. just cannot reach its transformative potential to reshape construction workflows, scale project management, and empower intelligent decision-making, without a resilient digital backbone, and the construction industry is waking up to the fact.
BUILDING BLOCKS OF DIGITAL CONSTRUCTION
One of the biggest trends we saw throughout this past year was the rapid adoption of modern Enterprise Resource Planning (ERP) platforms that serve as digital backbones across organizations. Our Censuswide industry research study found that 63 percent of construction and engineering companies planned to adopt a new ERP system in the next one to two years.
This modernization statistic has proven to be underestimated. In terms of how many companies are embarking on digital transformation projects, nearly a year after making these predictions, we realize that the optimism around the role of A.I. being able to reshape workflows, project management, and intelligent decision-making, is fueling a greater desire to adopt a future-proof ERP platform. It is seen as the springboard for scalable, trusted A.I. deployments.
HIGH ON THE PRIORITY LIST
The latest IFS research study “The Invisible Revolution”, which surveyed more than 300 senior executives from leading construction and engineering firms in May and June of this year, found that the sector is expected to become one of the most A.I.-first industries in 2026. Momentum is clearly building, with 91 percent of firms expecting to increase A.I. investment in 2026.
RECLAIMING CAPACITY
One of the greatest benefits of A.I. that we discuss is its ability to analyze and collate data in a much faster way. This gives all their employees—from workers on the construction site to senior management in the back office—more accurate, predictable and reliable information.
This enhanced and automated information gathering and analysis can reduce the enormous amount of time it takes to prepare regular board presentations on project performance. Most companies host interdepartmental meetings monthly with all the senior leaders from each of their divisions. Typically, each team of people takes days, if not weeks, to prepare their data by gathering information across multiple software solutions.
Industrial A.I. gives construction and engineering organizations more trusted control of their business by removing the unreliability and inconsistency of human guesswork, making it faster and easier to gather, analyse, and report on every dimension of project performance—including profitability, timeline delays, budget overruns, cost forecasting, safety incidents, quality, and more. Ultimately, leveraging Industrial A.I. to enhance reporting and data sharing across the organisation reduces business risk and delivers greater control over project results.
KEY METRICS BEHIND SUCCESS
The benefits are clearly resonating across the industry. The latest IFS research study found that the biggest applications of current A.I. deployments across construction and engineering firms were project delivery (62%) and business intelligence (59%). Out of these early adopters who are currently deploying A.I., companies are already seeing these benefits: 89 percent report profitability gains, 44 percent outperform the cross-sector average in operational efficiency, 42 percent in supply cost reduction, and 36 percent in lowering project expenditures.
With the growing economic uncertainty across the globe, the most impactful benefit of Industrial A.I. for this industry is giving companies greater control over project management. Out of all other industries, the project-centric nature of construction puts these firms most at risk of diminishing and/or unpredictable profit margins in volatile and disruptive markets.
Perhaps this is why the latest A.I. research shows that construction firms anticipate A.I.’s greatest benefits in project delivery (41%) and increased profitability (36%).
THE INDUSTRY OF TOMORROW
It is clear to see over the last 12 months the construction sector digital evolution has outpaced even the most optimistic forecasts. A.I. is here to provide tangible advantages, but the sector has reached a point where the modernization of aging ERP systems is no longer a luxury, but a strategic prerequisite for deploying Industrial A.I.
By clearing away these technical hurdles, construction and engineering firms are securing the level of project oversight, efficiency, and productivity necessary to thrive. The ultimate result of this shift is an industry that is more agile, data-connected, and durable—ready to fundamentally transform the way global infrastructure is designed and delivered.
about the authors
Kenny Ingram is VP of C&E, IFS, and Chris Knight is global industry director of C&E, IFS. For more, visit www.ifs.com.