AI Adoption Accelerates in Skilled Trades, Driving Efficiency and Growth
Key Highlights
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Nearly half of contractors are already using or experimenting with AI tools to improve operations
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Efficiency gains top the list of AI benefits, with 74% of contractors citing productivity improvements
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Organizational challenges—training, integration, and understanding ROI—are the biggest adoption barriers, not technology limits
LOS ANGELES, CA — ServiceTitan (Nasdaq: TTAN), the software platform built for the trades, today released its first annual AI in the Skilled Trades Report, based on a survey of over 1,000 contractors across residential and commercial sectors. The findings reveal that AI adoption is already underway, rapidly changing how trades businesses operate and compete.
AI Adoption Is a Present-Day Reality Driving Business Growth
Nearly half of contractors surveyed (46%) are currently using or testing AI tools, with most viewing the technology as relevant (72%) and transformative within the next 1–3 years (66%). Companies like Gulfshore Air have already reported revenue growth of 53% year-over-year since implementing AI. This signals a clear shift from AI as a future promise to a practical operational advantage in the trades.
Efficiency Is the Top AI Benefit for Contractors
Contractors identified improved efficiency and productivity as AI’s greatest value (74%), followed by better decision-making (51%) and reduced costs (48%). These gains apply across both residential and commercial markets, underscoring AI’s role as an efficiency engine for businesses of all sizes.
Organizational Barriers, Not Technology, Slow AI Adoption
While enthusiasm for AI is high, nearly half of contractors cite challenges such as lack of training, skilled staff, and difficulty integrating AI tools into existing systems as primary obstacles. Understanding how to use AI and proving clear ROI are also concerns. Employee resistance remains low, indicating workers are open to AI with proper guidance and support. Businesses that invest in training and integration planning position themselves to fully unlock AI’s potential.
Contractors Favor AI Embedded Directly in Their Software
Most contractors (59%) prefer AI features built into their existing software platforms rather than standalone AI tools (42%) or custom solutions (8%). This embedded approach aligns with broader industry trends toward platform consolidation and integration, allowing AI to fit seamlessly into contractors’ daily workflows.
AI’s Impact Is Felt Across All Areas of the Business
AI use is not limited to one department but spans administration (59%), marketing and sales (51%), customer service, and field operations (both 39%). Contractors are applying AI to high-volume, repetitive tasks to streamline core operations and boost overall efficiency.
ServiceTitan’s AI in the Skilled Trades Report highlights how trades businesses are actively adopting AI to improve performance, with those embracing the technology best positioned to win the competitive race ahead.
For full details and insights, download the report by visiting www.servicetitan.com/guides/2026-ai-in-the-trades.