August 20, 2026
ai-use-surges-across-property-and-construction-but-firms-struggle-beyond-pilot-studies

The property and construction sectors are witnessing a significant surge in the adoption of Artificial Intelligence (AI), with a growing majority of professionals now engaging with the technology. However, a substantial challenge persists: translating initial AI experiments and pilot studies into widespread, routine practice. This critical insight emerges from the latest comprehensive research conducted by the Royal Institution of Chartered Surveyors (RICS), as detailed in their "RICS AI in Commercial Property and Construction Report 2026." The report, which canvassed over 3,100 industry professionals globally, paints a picture of accelerated AI integration, yet highlights an ongoing hurdle in achieving sustained, embedded application.

Accelerated AI Adoption: A Sector-Wide Trend

The findings indicate a pronounced upward trajectory in AI utilization across both the construction and commercial property industries. In construction, approximately two-thirds of professionals are now employing AI in some capacity, a notable increase from just over half reported in the previous year, 2025. This represents a substantial leap in engagement, signaling a clear industry-wide recognition of AI’s potential.

Commercial property has demonstrated an even more robust adoption rate, with more than three-quarters of professionals reporting some level of AI use. This widespread embrace suggests a maturing understanding of how AI can be leveraged to enhance operations, improve decision-making, and drive efficiency within this complex sector.

The Pilot Study Paradox: Bridging the Gap to Routine Integration

Despite the encouraging growth in AI exploration, the RICS report reveals a consistent bottleneck: the transition from experimental phases to regular, integrated use. Both the construction and commercial property sectors report an identical proportion of organizations—39 percent—currently running early-stage AI pilot studies. This parity in initial exploration, however, masks a divergence in subsequent success.

Commercial property appears to be more adept at converting these pilot initiatives into ongoing, operational AI applications. The report indicates that 29 percent of commercial property firms have successfully integrated AI into their regular practices, a figure significantly higher than the 19 percent reported in the construction sector. This disparity suggests that while both sectors are actively investigating AI’s capabilities, commercial property is demonstrating greater efficacy in embedding these technologies into their daily workflows.

Investment Intentions Signal Future Growth

Looking ahead, investment intentions further underscore the sustained momentum behind AI adoption in these sectors. A substantial 47 percent of commercial property respondents indicated plans to increase their investment in AI over the next 12 months. This forward-looking commitment suggests a strategic prioritization of AI as a key enabler of future growth and competitive advantage.

In the construction sector, while slightly lower, the proportion of organizations planning to boost AI investment remains strong at 37 percent. This indicates a continued, albeit perhaps more cautious, commitment to expanding AI capabilities and integration.

The Evolving Challenge: From Experimentation to Embedding

The RICS analysis posits that the industry’s primary challenge has demonstrably shifted. The initial hurdle of encouraging organizations to simply experiment with AI has largely been overcome. The new frontier, as highlighted by the report, lies in the complex process of successfully embedding AI into the fabric of professional practice. This involves not only technological implementation but also cultural shifts, skill development, and robust governance frameworks.

Even within this evolving challenge, construction has registered significant advancements. The percentage of construction organizations reporting no AI use has decreased by more than a third since 2025, signifying a substantial reduction in the number of firms entirely outside the AI landscape. Concurrently, the proportion of organizations with regular AI use has climbed from 12 percent to 19 percent, reflecting incremental but meaningful progress in operationalizing AI.

AI use surges across property and construction but firms struggle beyond pilot studies

Persistent Barriers to Widespread Adoption

Despite the positive trends, several significant barriers continue to impede the full-scale adoption of AI in both sectors. A persistent and critical issue remains the scarcity of skilled personnel. The specialized knowledge and expertise required to develop, implement, and manage AI systems are in high demand, creating a bottleneck for many organizations.

Furthermore, the report highlights an increase in privacy and security concerns within the construction sector. Over the past year, these concerns have risen from 22 percent to 30 percent, indicating a growing apprehension about data protection and the potential vulnerabilities associated with AI deployment in often sensitive project environments. Similar concerns, though not explicitly detailed with year-on-year figures, are likely to be present in commercial property as well, given the sensitive nature of property data.

RICS’s Guidance: Towards Responsible and Routine AI Integration

In light of these findings, RICS is issuing a clear call to action for industry stakeholders. The institution urges organizations to proactively consider, from the outset, the strategies required to transition successful AI pilots into routine practice. This includes a thorough assessment of the necessary data infrastructure, integration protocols with existing systems, the provision of professional supervision, and the establishment of robust governance mechanisms.

The report also underscores the pivotal role of RICS’s professional standard, "Responsible Use of Artificial Intelligence in Surveying Practice," which was introduced in March 2026. RICS emphasizes that greater awareness and consistent adoption of this standard will become increasingly crucial as AI becomes more deeply ingrained in professional workflows. This standard aims to provide a clear framework for ethical and effective AI utilization, ensuring that the technology is deployed in a manner that upholds professional integrity and client trust.

A Transformative Moment for the Professions

Maureen Ehrenberg FRICS CRE, President Elect of RICS, commented on the significance of the report’s findings, stating, "A year ago, this report described an industry approaching an inflection point. The conditions for AI to take hold were in place, but adoption itself was still limited. This year’s data shows that point has been crossed."

Ehrenberg further elaborated on the implications of this shift: "This shift matters, as does the responsibility that comes with it. RICS’s professional standard Responsible Use of Artificial Intelligence in Surveying Practice, which came into effect in March 2026, provides members with a well-defined framework for acting with confidence. This is the moment for the profession to lead, not follow."

Her statement signifies a pivotal moment, suggesting that the property and construction industries are no longer on the cusp of AI adoption but are actively navigating its integration. The emphasis on leadership and responsibility highlights the ethical and professional imperative for the sector to harness AI effectively and responsibly.

Broader Implications and Future Trajectories

The accelerated AI adoption, coupled with the persistent challenges in full integration, points to a dynamic and evolving landscape. For construction, the increasing privacy and security concerns suggest a need for more robust cybersecurity measures and clear data governance policies tailored to the unique risks of project sites and supply chains. The gap in regular AI use compared to commercial property indicates potential areas where construction firms might benefit from knowledge transfer and best practice sharing.

In commercial property, the higher success rate in converting pilots to routine use may be attributed to factors such as more centralized data management, a greater emphasis on data analytics, or a stronger existing digital infrastructure. The planned increase in AI investment by nearly half of the respondents suggests a future where AI plays an even more integral role in property valuation, market analysis, tenant management, and the optimization of building performance.

The RICS report serves as a crucial barometer for the digital transformation underway in these vital industries. While the surge in AI use is undeniable and promising, the path to widespread, effective integration requires sustained effort, strategic investment, and a commitment to responsible innovation. The development and adoption of professional standards like RICS’s are vital in guiding this transformation, ensuring that AI serves to enhance efficiency, drive better outcomes, and uphold the highest standards of professional conduct in the years to come. The coming years will likely see a continued focus on bridging the gap between experimentation and embedding, with a growing emphasis on developing the necessary skills, robust data strategies, and ethical frameworks to fully unlock the potential of AI in shaping the future of property and construction.