The UK government’s Planning and Infrastructure Bill represents the most ambitious construction programme since World War II, with twelve new towns planned and over 100,000 new homes targeted. These are ambitious targets, but are British construction firms investing in the tools to deliver on them? Recent industry data reveals the UK construction industry is experiencing a downturn. S&P Global reports that UK construction activity plummeted in July 2025 at its fastest rate in over five years. 2024 recorded the lowest number of new home completions in a twelve-month period since 2017 (excluding the Covid period). And outside of housebuilding, crucial large scale infrastructure projects such as datacentres, railways, and tunnels are also being delayed or put on the back burner.
AI is transformative to the construction sector
A Trimble survey of 750 construction C-suite across the UK, Germany, and the US reveals that executives are confident artificial intelligence will be key to accelerating housebuilding and infrastructure projects, giving firms the ability to optimise labour, streamline planning, and prevent delays.
However, our research exposes a stark reality: over half of UK construction firms (53%) acknowledge they’re underinvesting in innovation and new technologies. This figure climbs to 62% specifically within residential construction, arguably the sector that’s under the most scrutiny today. Compare this to the United States, where nearly two thirds of construction CEOs already allocate over 25% of their budgets to new technology. In the UK, only one third match this level of commitment.
When asked about the most influential technologies for construction’s next decade, 44% of UK executives identified AI and machine learning as transformative. Yet this recognition isn’t translating into investment. The biggest limitation is budget: 67% cite budget constraints as the biggest barrier to innovation. Education around the value of AI is crucial when it comes to convincing decision makers to invest. While a large majority of UK construction executives expressed confidence about meeting future demand, every single respondent in our survey identified significant project barriers. Skills and labour shortages top the list at 68%, with supply chain disruptions also identified as a major challenge (62%). Both of which would be directly addressed by the technology available today. There is a huge missed opportunity here: AI-powered design and construction workflows could eliminate weeks or months from project timelines.
Digital and cultural transformation
AI integration is already underway for many firms, with solutions featuring embedded AI functionalities to augment human workers and improve efficiency in critical workflows such as design review, cost analysis, visualization, clash detection, scheduling, and production control. All to optimise processes across the project life cycle – from design, to preconstruction, construction, and operations. But technology alone won’t be enough to bridge our delivery gap. Our data reveals that 64% of UK firms face cultural barriers to change, while 66% struggle with digital skills shortages. Successfully deploying AI requires leadership commitment, a mindset shift, and comprehensive workforce development.
The most successful firms treat technology adoption as a process of strategic transformation in which cultural adaptation is as crucial as the technology itself. Transformation for these firms begins with securing executive support for AI initiatives, building out a clear vision, and starting with small, value-deliverable AI projects to build confidence. It also involves upskilling employees and educating them about capabilities and limitations. They invest in training programs that build AI literacy across all levels, from project managers to site supervisors. And they establish clear metrics for measuring technology ROI, and create feedback loops that continuously improve implementation.
The UK construction sector has access to the tools to deliver the government’s ambitious vision. But realising this potential will mean allocating substantial budget for AI and digital technologies, rolling out comprehensive workforce upskilling programmes, and encouraging organisational cultures that embrace technological change. Delaying investment into transformation and innovation will have negative effects in the long run. We are confident AI will lead the transformation of the construction sector, the real question is whether UK firms will act decisively now to capture the benefits, or risk falling behind their global competitors.
