Contractors Embrace AI to Drive Efficiency, Industry Report Finds

ServiceTitan has announced the release its first annual industry report examining how artificial intelligence is being adopted across the skilled trades, finding that contractors are moving quickly to integrate AI into day-to-day operations and view it as a near-term driver of business transformation.

The 2025 AI in the Trades Report is based on a survey of more than 1,000 contractors across residential and commercial verticals. The report explores current AI adoption, perceived benefits, barriers to implementation, and where innovation is gaining momentum within field service businesses.

AI adoption already underway

According to the survey, AI is no longer viewed as a future concept but as an active operational tool. Nearly half of respondents, 46%, said they are already using or experimenting with AI in their businesses. Contractors also expressed strong confidence in AI’s relevance, with 72% saying it is applicable to their operations and 66% expecting it to meaningfully transform the trades within one to three years.

The report highlights early signs of measurable business impact. As one example cited in the findings, Gulfshore Air, a full-service air conditioning and heating company, reported in July 2025 that it achieved 53% year-over-year revenue growth after realizing gains tied to AI adoption.

Efficiency cited as primary benefit

Efficiency and productivity emerged as the most significant perceived benefits of AI. Nearly three-quarters of respondents, 74%, said AI’s greatest potential lies in improving efficiency, followed by enhanced decision-making at 51% and reduced operational costs at 48%. These views were consistent across residential and commercial contractors, suggesting that AI is being evaluated primarily as an efficiency driver regardless of company size or market focus.

Barriers are human, not technical

While overall sentiment toward AI was favorable, respondents identified organizational challenges as the main obstacles to broader adoption. Nearly half of surveyed contractors, 44%, cited a lack of training or skilled staff and integration challenges as top barriers. Additional concerns included difficulty understanding how to use AI tools, reported by 38% of respondents, and uncertainty around return on investment or clear use cases, cited by 37%.

Employee resistance ranked significantly lower, at 18%, indicating that workers are generally open to AI but require guidance and support. The report notes that companies investing in training and integration planning are better positioned to overcome these barriers.

Embedded AI tools preferred

The report also found that contractors strongly prefer AI capabilities that are built directly into the software platforms they already use. Nearly six in ten respondents, 59%, said the most common AI tools they rely on are embedded features within existing software. This outpaced the use of general-purpose AI tools at 42% and custom-built systems at 8%.

According to the findings, contractors value AI that integrates directly into core workflows, while general-purpose tools are used primarily to fill gaps where embedded capabilities are not available.

Operational impact spans the business

AI adoption is not confined to a single function. The survey found that administrative tasks currently see the highest level of AI usage and impact, reported by 59% of respondents. Marketing and sales followed at 51%, while customer service and communication and field operations both reported usage rates of 39%.

Overall, the data suggests that trades businesses are applying AI first to high-volume and repetitive tasks as a way to streamline core processes and address immediate operational challenges.

The research was conducted by Thrive Analytics on behalf of ServiceTitan, provider of a software platform for trades businesses, and surveyed contractors between October 23 and November 12. The company noted that the findings are based on a specific sample and should not be interpreted as representative of the entire trades industry.