Three in Four Tradies Back AI. One in Eight Uses It.

Three in four trades contractors see AI as their best path to efficiency. Only one in eight has actually embedded it into their operations. That gap — between knowing AI matters and doing something about it — is now the defining challenge for trades businesses trying to stay competitive.

ServiceTitan’s 2026 State of AI in the Trades report, conducted by independent research firm Thrive Analytics, surveyed 1,032 contractors across HVAC, plumbing, electrical, roofing, and four other trades. The numbers are stark: 74% view AI as key to efficiency, 73% believe early adoption creates a competitive advantage, and 66% expect AI to bring moderate or major transformation within three years. But only 12% have embedded AI into their operations. Another 34% are experimenting. And 41% are sitting in wait-and-see mode.

Here’s the finding that should reframe the conversation: only 18% of contractors cite employee resistance as a barrier to AI adoption. The actual blockers? Lack of training and integration complexity, both at 44%. Difficulty understanding the tools sits at 38%. Unclear ROI at 37%.

This flips the assumption. The conversation in most trades businesses isn’t “my team won’t use it.” It’s “we don’t know where to start.” The constraint is knowledge, not attitude — and that’s a far more solvable problem.

Among contractors who have adopted, the results back up the interest. 62% report measurable efficiency and productivity gains. Early adopters cite 48% productivity improvements and 45% time savings. Administration leads adoption at 59%, followed by marketing and sales at 51%, with field operations at 39%. One contractor, Quality Service Company, reported that 30% of bookings now flow end-to-end without any human involvement.

The ServiceTitan data is US-based, but the pattern maps directly onto Australia’s trades sector. Australian contractors face a labour shortage that makes efficiency gains even more urgent — the Housing Industry Association estimates the industry needs 83,000 extra skilled workers, and trade role fill rates have dropped to 54.3% according to Jobs and Skills Australia.

When you can’t hire your way to capacity, technology is the only other lever. And the cost pressure is real: 71% of commercial contractors in a companion ServiceTitan survey report rising wages, up from 55% a year ago. In Australia, loaded rates for qualified tradespeople sit around $85–95 per hour. Every hour your team spends on admin instead of billable work has a price tag.

We’ve covered before how NAB found construction and trades businesses trailing other industries on AI adoption, and how only 5% of Australian SMEs report being fully enabled on AI. The ServiceTitan data suggests the core issue isn’t scepticism. Tradies see the value. The gap is training and integration support — not willingness.

Start with what you already have. 59% of contractors using AI are using features embedded in their existing job management platform — not separate AI products. Check what your scheduling, dispatch, or quoting software already offers. ServiceTitan, simPRO, AroFlo, and most modern platforms have AI features many users haven’t switched on.

Use the free training. The federal government announced one million free AI microskill scholarships in the 2026–27 Budget, delivered through the National AI Centre and TAFE NSW. We wrote about this last week. These courses are designed for workers, not data scientists — directly relevant for your office coordinator or dispatch team.

Pick one metric and measure it. The 37% who cite “unclear ROI” aren’t measuring. Choose one number: average booking time, quote turnaround, or unbilled admin hours. Track it for a month before and after enabling one AI feature. That’s your business case — not an abstract belief in AI, but a dollar figure you can point to.

Key takeaways

Not sure which workflow to start with?

Book a call and we’ll identify the highest-value AI opportunity in your operations — based on what’s working for other trades businesses.