AI replacing jobs? Maybe, maybe not
The news over the last few months has been full of reports talking about AI and the potential job loss it may cause. Headlines suggest that up to 300 million jobs globally could be impacted by AI, with most of the job loss coming from the replacement of entry-level positions. The uncertainty driven by AI has been felt across all industries, and construction is no exception. But it’s unclear if AI will cut jobs or help the industry grow and create new ones.
Adoption of AI in construction
Construction jobs, such as drywall installation, concrete pouring, and HVAC setup, are harder to automate than office jobs, yet the construction press has often promoted a fearful tone. As just one example, in early November, Construction Dive reported on industry research with the headline "Over one-third of companies plan to replace entry roles with AI...," fueling the sense of fear. However, upon closer examination, the report's findings extend beyond what the title would indicate.
Taking a look beyond the headlines, the construction industry likely has less to fear in terms of job loss than many other industries.
- Globally, less than 1% of construction firms have fully embedded AI across their organization.
- More than 60% say their adoption is only average.
- Many construction trial AI programs never scale.
- Multiple leaders in business and politics are calling for increasing numbers of people to join the ranks of current builders and tradespeople.
Additionally, most small firms aren’t included in AI industry surveys, so the narrative of big firms, which have more office workers, dominates reporting. The industry is not yet in an AI arms race; it is experiencing a gradual transition. The firms that succeed will be those that manage the shift on their own terms, rather than pursuing hype.
How to be a winner from AI in the construction industry
Despite most AI-in-construction coverage centering on top firms, company size neither ensures success nor rules out smaller players. The real difference comes down to mindset and execution.
Winners from AI are going to be firms that treat AI as a lever:
- They say, “How do we make our people better with AI?” not “How do we replace them?”
- They choose tools that integrate with the way they and their people already work.
- They avoid being distracted by dozens of point-solutions that don’t talk to each other.
The biggest threat for contractors isn’t AI replacing jobs, but outdated processes that reduce profits and slow growth. Companies leveraging AI can increase efficiency and generate more work. In construction, AI tackles repetitive tasks that waste time and resources. As a builder, ask yourself:
- How are AI tools being utilized in your workplace?
- Are you receiving a new tool every week?
- Do these tools actually make your work easier, or do they add more tasks?
- If you are a general contractor or tradesman, have you explored these tools yet?
- What pressure are you facing from competitors who may have already begun adopting these technologies?
AI impact on one of the world’s largest builders
Let’s look at a real-world example of a firm doing this well. Turner Construction, one of the largest general contractors, uses AI to augment their team rather than replace workers.
- They deployed ChatGPT across their full organization with a people + AI strategy.
- Embedded internal “tech mentors” to help field staff adopt AI, ensuring technology doesn’t live in a silo.
- Set measurable goals: automating contract compliance checks, speeding bid reviews, tightening job-site audits for safety and quality.
Because they have the scale and leadership alignment, they’re able to convert announcements into real execution. For a large firm, success with AI will likely come down to systems and leadership. Not every large company will have that. But if you do, you gain an advantage in implementing AI.
How smaller builders and trade contractors benefit from AI construction software
Now let’s flip to small firms: home builders, custom remodelers, specialty trade contractors. For you, AI isn’t about massive tech build-outs. It’s about eliminating the admin drag and unlocking more capacity.
Here are some of the most tangible use-cases:
- Construction Estimating: Use AI to read specs, identify key requirements, and generate preliminary estimates.
- Change orders: One sentence from the field (“existing panel undersized”) becomes a polished, client-friendly change-order justification with cost and timeline implications.
- Paperwork automation: Invoices, expenses, and COI management are time commitments for small firms. AI can free up hours, allowing you to focus on growth.
Smaller firms have the added advantage of being able to implement AI more quickly. Because they are less organizationally efficient than large corporate builders, the improvements made through AI should have an even greater impact.
How to use AI in construction for growth and job creation
The real risk for contractors isn’t AI taking jobs, but sticking to outdated processes that eat into profits and hinder growth. Companies that embrace AI can improve efficiency and create more work for everyone. AI isn’t about replacing jobs in construction; it’s about taking on repetitive tasks that waste time and money. Companies that use AI wisely will prosper, while those that resist it may fall behind. The opportunity lies in using AI to improve efficiency, sharpen your competitive edge, and create more jobs.
