LOS ANGELES, CA — ServiceTitan has released its The Update: 2026 State of AI in the Trades Report, examining the adoption and impact of artificial intelligence among contractors. The second annual report is based on a survey of 1,017 US residential and commercial trades contractors across HVAC, plumbing, electrical, roofing, garage doors, pest control, landscaping, and fire and life safety.

The findings show contractors increasingly moving beyond questions about whether AI is relevant to their businesses and toward determining where the technology can provide practical value.

Contractors Report Growing AI Adoption

Seventy-seven percent of contractors surveyed now consider AI relevant to their industry, while 69% expect AI to transform the trades within the next one to three years. Active engagement with AI increased from 46% in December 2025 to 52% in September 2026.

At the same time, the percentage of contractors watching AI developments without actively engaging with the technology declined from 22% to 18%.

Among contractors already using AI, 64% report productivity gains and 55% report faster decision-making. Sixty-six percent say AI saves them at least three hours per week, including 40% who report saving five or more hours.

“Over the next few years, the businesses that pull ahead will be the ones that weave AI into the fabric of their operations,” said Abhishek Mathur, Chief Technology and Product Officer at ServiceTitan. “Every job, every customer interaction, every dispatch decision becomes a learning moment that will improve future performance while increasing efficiency of operations”

Workforce Pressures Are Driving AI Experimentation

Hiring challenges and the workforce gap were the leading reasons contractors cited for experimenting with AI, identified by 37% of respondents. Other major drivers included providing off-hours support at 34% and reducing operating costs at 33%.

The findings indicate that contractors are looking at AI as a way to extend the capacity of existing employees and address operational demands when additional workers are difficult to hire.

Despite reported productivity improvements, fewer than half of contractors currently report that AI has improved profitability or increased revenue. Forty-seven percent report improved profitability, while 43% report increased revenue.

Contractors Are Looking for Practical AI Applications

The challenges contractors face in adopting AI are shifting as the technology becomes more accessible. High purchase cost, which ranked as the leading barrier in the previous survey, fell 12 percentage points to 17%, placing it last among the key barriers measured.

Instead, contractors are increasingly focused on how to use AI effectively. Forty-four percent say understanding how to use AI in their business is a barrier, while 43% cite a lack of clear use cases and 40% point to integration with existing software.

The results suggest that contractors are moving from questions about the cost of AI toward questions about implementation and how the technology can generate measurable business value.

Trade-Specific AI Could Encourage Adoption

Contractors also expressed interest in AI designed around the specific requirements of their businesses. Forty percent said clearer return on investment would encourage greater adoption, while 38% said AI trained on trade-specific data would encourage them to use the technology more.

Among current AI users, 61% prefer AI and automation to be built directly into their core business platform. That preference points to demand for AI tools that can work within established workflows rather than requiring contractors to manage separate technology systems.

Trust Remains a Challenge for AI Users

Growing adoption has not eliminated concerns about the reliability of AI. Only 11% of contractors report having high or complete trust in the AI tools they use, while 58% report little or no trust.

Among AI users, accuracy and reliability are the leading concerns, cited by 35% of respondents. The findings highlight the importance contractors place on AI that produces dependable results and can be applied to real-world trade operations.

Survey Covers Multiple Skilled-Trades Industries

The research was conducted on behalf of ServiceTitan by Thrive Analytics, an independent third-party research provider. The survey included 1,017 verified US residential and commercial trades contractors across HVAC, plumbing, electrical, roofing, garage doors, pest control, landscaping, and fire and life safety.

ServiceTitan states that the research is provided for informational purposes and makes no assurances, express or implied, regarding the accuracy of the survey data. Forward-looking economic and industry outlooks represent the views of survey respondents and may not represent the views of ServiceTitan or its affiliates.

To download a copy of the report visit www.servicetitan.com/guides/the-update-2026-state-of-ai-in-the-trades.