The construction industry is at a crossroads. While firms are eager to embrace the digital revolution, a new report from Wipfli reveals a stark reality: ambition is outpacing execution. The 2025 state of technology in construction report, based on a survey of 308 executives, paints a picture of a sector still grappling with the basics of digital transformation.
“Technology maturity in construction is still in its adolescence,” said Brad Werner, partner and construction and real estate industry leader at Wipfli. His words underscore a critical truth: the industry is playing catch-up. While 82% of respondents claim to have an AI strategy, most are still operating at the entry level. This is not just a matter of keeping pace with technological advancements; it’s about ensuring that these tools deliver real value.
The report highlights a widening gap between investment and integration. For instance, 73% of firms plan to invest in cybersecurity in the coming year, yet eight in 10 experienced a data breach in the past 12 months. This discrepancy raises serious questions about the effectiveness of current strategies. “C-suite leaders shouldn’t micromanage tech, but they must own cyber risk and demand tight, centralized control of the stack,” Werner emphasized. Integration, he argues, isn’t optional—it’s the key to unlocking speed and value.
The findings also reveal that larger firms are leading the way in data analytics and cybersecurity. However, even among companies with over $250 million in annual revenue, 12% still rely on mostly manual reporting. This reliance on outdated methods is a red flag, signaling a lag in adopting technologies that could streamline operations and enhance decision-making.
One of the most striking revelations is that 66% of the smallest firms now have an AI strategy. While this is a positive sign of democratization of technology, it also underscores the need for these firms to scale beyond pilots. “The real play now is scaling beyond pilots—turning tech from a sidecar into the engine for sharper, faster decision-making across the enterprise,” Werner noted. This shift is crucial for unlocking AI’s predictive power, which is critical for driving efficiency and innovation in the sector.
The report also highlights that only one-third of firms have achieved real-time, automated decision-making. This is a critical step that many firms are still struggling to achieve. The ability to make data-driven decisions in real-time can significantly enhance project management, risk assessment, and overall operational efficiency.
As the construction industry continues to evolve, the need for robust cybersecurity measures cannot be overstated. The report’s findings serve as a wake-up call for firms to prioritize cybersecurity investments and ensure that their digital transformation strategies are comprehensive and well-integrated. The path forward is clear: firms must move beyond the entry level of technology adoption and strive for full integration to truly harness the power of advanced tools.
The construction sector is at a pivotal moment. The tools are available, but the challenge lies in effectively integrating and scaling them. As Werner aptly put it, “Even the biggest firms have blind spots in tech adoption.” Addressing these blind spots will be key to unlocking the full potential of technology in construction. The industry must move swiftly to bridge the gap between ambition and execution, ensuring that technology becomes the engine that drives innovation and growth.