United States, August 13, 2025
News Summary
A new industry report and recent developments signal a turning point for construction technology as AI, data and automation begin reshaping planning and project execution. The report highlights massive scale—construction represents roughly 13% of global GDP—and estimates a large productivity opportunity if firms close digitization gaps. Many organizations still rely on paper-based processes, losing time to searching for data and rework. The coverage also notes rising legal and competitive risks after a trade-secret suit and a cloud-native model-checking product that integrates with major construction platforms, underscoring the race to digitize and modernize workflows.
Industry snapshot: AI, automation and a wave of digitization set to reshape construction
A new industry study from a major construction software provider lays out a strong case that artificial intelligence and automation will remake how projects are planned and built, even as the sector struggles with low digital maturity and persistent manual processes. The report, based on surveys of more than 1,200 construction decision-makers across eight countries, highlights clear productivity gaps, large market opportunities and short-term pitfalls including legal and competition risks.
Top takeaways
- Construction accounts for about 13% of global GDP, yet the industry remains one of the least digitized sectors worldwide.
- Roughly 40% of firms still rely primarily on paper-based methods for key workflows.
- Daily inefficiencies are quantified: an estimated 18% of project time is lost searching for data and 28% is lost to rework.
- Expert groups and industry research point to a large untapped market for construction technology and a potential $1.6 trillion opportunity to close productivity gaps.
- Industry leaders see AI, data and automation as central to the next decade of change, but they warn technology must augment, not replace, skilled workers.
What the report measured
The report combined extensive research with a global survey of construction leaders from Australia, Canada, Ireland, New Zealand, Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States. Respondents rated the importance of connected project data, current technology gaps and the expected impact of automation. More than 80% of those surveyed called historical, connected data critical to project success, while 76% of civil and infrastructure builders said they are not yet fully harnessing their data.
Productivity, market size and workforce
Industry-wide construction spending totals roughly $10 trillion per year, according to global consultancy estimates, creating a sizable addressable market for software and services. Closing productivity shortfalls could unlock significant economic value. The report also highlights a looming workforce shift: nearly a quarter of a million construction workers are expected to retire over the next decade, making digital fluency an increasingly valued on-site skill.
How technology is expected to help
Respondents and company technologists identified several near-term gains from AI and automation: improved scheduling, smarter workforce allocation, real-time cost tracking and fewer costly rework cycles. The findings frame technology as a tool to bolster resilience against rising material costs, supply-chain volatility and tariffs, while helping teams optimize resources and reduce waste.
Industry caution: technology isn’t a silver bullet
While most leaders expect automation to be disruptive within five years, the report warns against overreliance on tools alone. The success of AI-driven insights depends on how well they are integrated into workflows and used to support human decision-making. Industry insiders emphasize that hands-on expertise will remain central to safe, efficient construction.
Legal and competitive developments to watch
In a separate legal matter, a large enterprise software company filed a federal lawsuit alleging that a former employee transferred thousands of confidential documents, including source code and strategic materials, to a competing construction software firm. The complaint alleges the documents were used to build a new payments-management platform that competes with the plaintiff’s offering. The case was filed in the U.S. District Court for the Northern District of California under case number 3:24-cv-07457. The plaintiff is seeking monetary damages and an order to prevent use of the alleged trade secrets. The accused company says it will vigorously defend itself and continue its product work.
Product integrations and tools arriving
Toolmakers are also accelerating integrations aimed at reducing friction between design, model checking and project platforms. A new cloud-native model-checking tool is now compatible with both a leading construction cloud platform and a widely used architecture and engineering workflow, offering a simpler alternative to legacy model-checking tools. The tool became available in the United States, the United Kingdom and Ireland in January 2025 and will extend to other markets thereafter.
What this means for project owners and contractors
The combined picture is clear: there is both an urgent need and a major commercial opportunity for digitization across construction. Teams that prioritize connected data, reduce paper workflows and adopt AI to augment human expertise are likely to capture efficiency gains early. At the same time, organizations should account for legal risk, guard confidential information, and invest in worker training so automation complements practical skills on the jobsite.
Frequently asked questions
Q: How big is the opportunity for construction technology?
A: Global construction spending sits around 13% of world GDP, with estimates showing roughly $10 trillion spent on construction-related goods and services annually. Research suggests up to $1.6 trillion in productivity gains is achievable by closing current gaps.
Q: What are the main inefficiencies technology can address?
A: Key inefficiencies include time lost searching for data (about 18% of project time) and rework (about 28%). Better data connections, model checking and automation can reduce those losses.
Q: Will AI replace construction workers?
A: Industry findings stress that AI should augment human expertise, not replace it. Skilled workers remain central to safety, quality and on-site decision-making; digital fluency is becoming a critical skill as older workers retire.
Q: Are there legal risks with rapid product development?
A: Yes. Recent legal filings allege misappropriation of confidential information in the development of competitive platforms. Companies should follow strong data governance and compliance practices to mitigate such risks.
Q: What new tools are available now?
A: New cloud-native model-checking tools that integrate with major construction and design platforms are being rolled out. These tools aim to simplify model quality assurance and fit into existing workflows.
Key features at a glance
| Topic | Main points | Expected impact |
|---|---|---|
| Digitization gap | Low digital maturity; ~40% paper-based workflows; 1,200+ respondent survey | Large market for software; quick wins through data connection |
| Productivity metrics | 18% time lost searching; 28% lost to rework; $1.6T opportunity | Potential for measurable time and cost savings |
| AI & automation | Seen as disruptive within 5 years; expected to optimize scheduling and workforce allocation | Improved efficiency and resilience versus supply shocks |
| Legal risk | Federal lawsuit alleges misappropriation of confidential materials; case no. 3:24-cv-07457 | Heightened need for governance and careful product practices |
| Model checking & integrations | New cloud-native model-checker integrates with major construction and design platforms; US/UK/Ireland rollout in Jan 2025 | Simpler QA workflows and faster model validation |
Deeper Dive: News & Info About This Topic
Additional Resources
- Nanalyze: Procore stock — a massive opportunity in construction
- Wikipedia: Construction
- On-Site: Procore explores the future state of construction
- Google Search: Procore Technologies
- Futunn: A quick look at today’s ratings for Procore Technologies
- Google Scholar: Procore Technologies
- Edhat: Oracle files lawsuit against Procore over alleged trade-secret theft
- Encyclopedia Britannica: Trade secret
- Architosh: Solibri introduces Solibri Checkpoint for ACC and Procore
- Google News: BIM model checking
Author: Construction CA News
CALIFORNIA STAFF WRITER The CALIFORNIA STAFF WRITER represents the experienced team at constructioncanews.com, your go-to source for actionable local news and information in California and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rose Parade, Coachella, Comic-Con, and the California State Fair. Our coverage extends to key organizations like the California Building Industry Association and Associated General Contractors of California, plus leading businesses in technology and entertainment that power the local economy such as Apple and Alphabet. As part of the broader network, including constructionnynews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic landscape across multiple states.
