Construction firms are investing in cybersecurity, AI, cloud platforms and green building tech — yet many executives say their teams struggle to use the tools they already have. While the majority (82%) of survey respondents claim to have an AI strategy, most are operating at the entry level rather than integrating AI into strategic decision-making. Leaders understand the importance of data analytics, but only a third have achieved real-time, automated decision-making — a necessary precursor to fully leveraging AI’s predictive power.
When it comes to cybersecurity, industry leaders have put cybersecurity at the top of the priority list, with larger firms leading the way in security upgrades. However, with eight in 10 firms experiencing a data breach in the last year and with cybercriminals constantly evolving, it will take time for intention and investment to close the vulnerability gap.
Data analytics adoption is still in its adolescence, with larger firms farther along in their journey.
- Among executives at firms with annual revenues over $250M, 47% said real-time insights drove automated decision-making.
- Among executives at firms with annual revenues less than $50M, 17% said they were using real-time insights.
- Even among executives at the largest, $250M+ firms, 12% were still in the least-advanced category for data analytics, indicating their reporting was mostly manual, offering limited historical analysis.
There is plenty of room for growth in these findings, particularly in terms of enterprisewide strategic alignment on technology investments. According to Brad Werner, CPA, who leads Wipfli’s construction and real estate practice, while C-suite leaders may not have the capacity to participate in all the decision-making on technology governance, they do need to pay attention to two key elements.
“The first is cybersecurity and ‘protecting the house.’ Intrusions are not just happening to some firms in some years, but to every firm, every year,” said Werner. “The second is the decision-making around what the architecture and platforms look like. This needs to involve a centralized team that understands the entire tech stack. The COVID days are over; no longer can we allow each team to choose its own tech. Integration is what allows for value acceleration, and that can only happen when all the pieces — both technology and people — talk to each other seamlessly.”
The score distribution suggests there is plenty of room for additional technology readiness and maturity.
While smaller firms were most likely to cite effective technology utilization as a challenge, firms of all sizes admitted that a lack of full utilization by all employees was an issue.
Data suggests that many executives interpret AI as consumer-grade productivity tools rather than departmental- or enterprise-grade solutions that can accelerate forward-facing analysis.
Covered in the full report
This year’s report offers a full analysis of the construction industry’s key priorities, challenges and opportunities when it comes to technology. The report covers:
- What executives see as the most promising use cases for technology in construction.
- The biggest technology challenges facing small, medium and large firms alike.
- The technologies construction leaders are most likely to invest in this year.
- A breakdown of AI readiness by firm size.
Access the full report for an in-depth analysis and the complete set of data. For media inquiries, contact Alicia O’Connell at alicia.oconnell@wipfli.com.
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