Artificial intelligence and commercial real estate are being used in more sentences and write-ups lately. However, one real estate area in which AI hasn’t been publicized quite so much is the trades. Specifically, how electricians, plumbers, carpenters, framers, welders and others view the technology.

With the above in mind, ServiceTitan released its “2026 State of AI in the Trades” report, detailing an industry survey with a takeaway that “contractors nationwide see the potential in AI and expect the technology to impact their businesses soon—but aren’t yet sure how that monumental change will play out for them.”

ServiceTitan’s General Manager, Commercial & Construction Markets, Alex Kablanian, told Connect CRE that the trades are an area that can benefit from AI enhancements, especially in back-office operations.

Still, “what surprised us about the results is how quickly the gap is forming between businesses that are embracing new technologies and those that aren’t,” he said. “These results reinforce our belief that the contracting business of the future will look meaningfully different, and not just incrementally better.”

The Hard Numbers

The study reported that 12% of respondents said they have embedded AI in their processes, while 35% have yet to use AI in their businesses. Additionally, 59% of those surveyed indicated that administration leads the current use of AI, while 19% stated the design and planning “remains a niche use case.”

Kablanian explained that trades-affiliated AI won’t replace those in the field, including supervisors, technicians or field installers. It would be difficult to automate the flexibility and adaptability necessary to face unpredictable situations or environments. “Where AI will have a big impact is in making that work meaningfully easier and more efficient,” he said.

Meanwhile, 59% said they rely on AI that is built into software they currently use. Kablanian said this metric made sense, as contractors want technology tools that focus on their end-to-end businesses, versus point solutions.

“Embedded, vertical solutions have a clear advantage because they work with full operational context, including scheduling, job history, pricing, inventory, customer data, and technician availability,” he pointed out. The tools also help AI provide better recommendations and actions, meaning they’re “ultimately better positioned to deliver real outcomes, not just isolated features,” Kablanian said.

Now, for the Obstacles

As is often the case with new technology, AI implementation in the trades hasn’t been particularly swift. Specifically:

• 44% respondents cited the lack of training as a problem

• 44% said integration complexity is an issue

• 38% reported a difficulty in understanding how to use AI

• 37% said an unclear ROI is an obstacle

• 18% cited employee resistance

Kablanian noted that ways to overcome AI obstacles include offering real-world use cases that show hands-on usage and specific outcomes. Another method of increasing implementation is easy-to-implement solutions that don’t disrupt operations.

“Finally, trade groups can encourage a mindset of continuous improvement by creating space for education, open dialogue, and progressive thinking about how technology can strengthen the industry over time,” Kablanian said.

Survey Takeaways

The ServiceTitan report concluded that contractors are curious about AI’s relationship to the trades. They also want trade-tailored solutions and proof of value, as well as custom-built solutions rather than a “one-size-fits-all” approach.

“The survey reinforces that this is a massive, resilient industry that’s still early in its technology adoption,” Kablanian said. In addition to increasing operational efficiencies, artificial intelligence can position trade careers as more accessible and appealing to the next generation of workers.

“Over time, that can play a meaningful role in helping close the skilled labor gap while raising the bar for the entire industry,” Kablanian said.

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