The UK government’s Planning and Infrastructure Bill is setting an ambitious agenda for the construction sector, with plans for twelve new towns and over 100,000 new homes. However, the industry is grappling with a stark reality: British construction firms are not yet fully equipped to deliver on these targets. Recent data paints a concerning picture—UK construction activity plummeted in July 2025 at its fastest rate in over five years, and 2024 recorded the lowest number of new home completions in a twelve-month period since 2017, excluding the Covid period. Large-scale infrastructure projects, such as datacentres, railways, and tunnels, are also facing delays or being put on the back burner.
The potential of artificial intelligence (AI) to transform the construction sector is undeniable. A Trimble survey of 750 construction C-suite executives across the UK, Germany, and the US reveals that AI is seen as key to accelerating housebuilding and infrastructure projects. Executives recognize that AI can optimize labour, streamline planning, and prevent delays. However, the survey also exposes a troubling gap: over half of UK construction firms (53%) admit they are underinvesting in innovation and new technologies. This figure rises to 62% in residential construction, the sector under the most scrutiny today.
In contrast, nearly two-thirds of US construction CEOs already allocate over 25% of their budgets to new technology, while in the UK, only one-third match this level of commitment. When asked about the most influential technologies for the next decade, 44% of UK executives identified AI and machine learning as transformative. Yet, this recognition isn’t translating into investment. The biggest barrier cited by 67% of firms is budget constraints.
Education around the value of AI is crucial to convincing decision-makers to invest. While UK construction executives express confidence about meeting future demand, every single respondent 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 issues could be directly addressed by the technology available today. AI-powered design and construction workflows could eliminate weeks or months from project timelines, but the industry is lagging in adoption.
Digital and cultural transformation is already underway for many firms, with AI integration featuring in solutions that augment human workers and improve efficiency in critical workflows such as design review, cost analysis, visualization, clash detection, scheduling, and production control. However, technology alone won’t bridge the delivery gap. The 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, where cultural adaptation is as crucial as the technology itself. This transformation begins with securing executive support for AI initiatives, building a clear vision, and starting with small, value-deliverable AI projects to build confidence. It also involves upskilling employees and educating them about AI capabilities and limitations. These firms invest in training programs that build AI literacy across all levels, from project managers to site supervisors, and establish clear metrics for measuring technology ROI, creating feedback loops that continuously improve implementation.
The UK construction sector has access to the tools needed to deliver the government’s ambitious vision. Realizing this potential will mean allocating substantial budgets for AI and digital technologies, rolling out comprehensive workforce upskilling programs, and encouraging organizational cultures that embrace technological change. Delaying investment in transformation and innovation will have negative effects in the long run.
The question now is whether UK firms will act decisively to capture the benefits of AI or risk falling behind their global competitors. The potential is there, but the time to act is now.