Artificial intelligence (AI) adoption within the property and construction sectors has experienced a significant surge over the past year, with a growing number of firms actively experimenting with the technology. However, research from the Royal Institution of Chartered Surveyors (RICS) reveals a persistent challenge: the difficulty in translating these initial pilot studies into widespread, routine operational practice. The findings, detailed in the RICS AI in Commercial Property and Construction Report 2026, paint a nuanced picture of innovation, highlighting both the accelerating embrace of AI and the critical need for strategic integration.
The report, which surveyed over 3,100 industry professionals globally, indicates a substantial increase in AI utilization across both sectors. In construction, approximately two-thirds of professionals reported using AI in some capacity, a notable rise from just over half in 2025. The commercial property sector demonstrates even higher adoption rates, with more than three-quarters of respondents indicating some level of AI integration. This widespread experimentation is a clear indicator that the industry is moving past initial skepticism and is actively exploring the potential of AI to transform its operations.
Bridging the Gap: From Pilot to Practice
Despite the widespread experimentation, a key finding of the RICS report is the similar proportion of organizations in both construction and commercial property currently running early-stage AI pilots – a figure standing at 39 percent for both. However, the commercial property sector is demonstrating greater efficacy in transitioning these pilot projects into regular, integrated use. Currently, 29 percent of commercial property firms report regular AI use, compared to 19 percent in the construction sector. This divergence suggests that while the initial steps are being taken by many, the pathway to sustained, impactful AI deployment is more established within commercial property.
Looking ahead, investment intentions further underscore the growing momentum. A significant 47 percent of commercial property respondents plan to increase their investment in AI over the next 12 months. The construction sector also shows a strong commitment to future investment, with 37 percent of firms intending to boost their AI spending. This forward-looking perspective indicates a strategic recognition of AI’s long-term value proposition, even as immediate challenges in implementation persist.
RICS’s Perspective: The Shifting Landscape of AI Integration
According to RICS, the core challenge for the industry has evolved. The initial hurdle of encouraging organizations to experiment with AI has largely been overcome. The focus has now shifted to the more complex task of successfully embedding AI technologies into the day-to-day practices of professionals. This involves not just adopting new tools, but fundamentally rethinking workflows, data management, and professional development.
The construction sector, despite its current lag in regular AI use compared to commercial property, has nonetheless witnessed substantial progress. The proportion of construction organizations reporting no AI use has decreased by over a third since 2025, demonstrating a clear movement towards AI adoption. Furthermore, the percentage of firms utilizing AI on a regular basis has seen a healthy increase, rising from 12 percent to 19 percent in the past year. This upward trend, while promising, highlights the ongoing need to address the specific barriers hindering broader implementation within construction.
Persistent Barriers to Full AI Integration
Several significant obstacles continue to impede the full integration of AI into the property and construction industries. A persistent and critical issue is the lack of skilled personnel. The rapid advancement of AI technologies requires a workforce equipped with specialized knowledge and skills, a demand that the industry is currently struggling to meet. This skills gap affects everything from developing and implementing AI solutions to understanding and managing their outputs effectively.
Furthermore, privacy and security concerns have emerged as a more prominent challenge, particularly within the construction sector. Over the past year, these concerns have increased from 22 percent to 30 percent of respondents. The sensitive nature of project data, including proprietary designs, financial information, and site specifics, necessitates robust security protocols and a clear understanding of data governance. As AI systems become more integrated into data-intensive processes, addressing these security and privacy anxieties is paramount to fostering trust and enabling wider adoption.
Recommendations for Sustained AI Adoption
In light of these findings, RICS is advocating for a more proactive and strategic approach to AI implementation. The organization urges businesses to consider from the outset how successful AI pilot projects can be scaled and integrated into routine practice. This includes a comprehensive assessment of the necessary supporting infrastructure, such as robust data management systems, seamless integration with existing software, appropriate professional supervision, and clear governance frameworks. Without this foresight, promising pilot initiatives risk remaining isolated experiments rather than catalysts for transformative change.
The Role of Professional Standards in an AI-Driven Future
The RICS report also underscores the growing importance of the institution’s professional standard, "Responsible use of artificial intelligence in surveying practice." This standard, which came into effect in March 2026, provides a crucial ethical and practical framework for surveyors engaging with AI technologies. As AI becomes increasingly embedded in professional work, greater awareness and consistent adoption of this standard will be vital to ensure that AI is used ethically, effectively, and in a manner that upholds professional integrity and client trust. This standard aims to equip professionals with the knowledge and guidance to navigate the complexities of AI, fostering responsible innovation.
Industry Leaders on the AI Inflection Point
Maureen Ehrenberg FRICS CRE, President Elect of RICS, commented on the significance of the report’s findings. "A year ago," she stated, "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. This shift matters, as does the responsibility that comes with it."
Ehrenberg emphasized the role of RICS in guiding the profession through this transformative period. "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 highlights a critical juncture where the industry is no longer simply observing AI’s potential but is actively grappling with its integration and the responsibilities that accompany it.
A Timeline of AI Evolution in Property and Construction
The RICS report provides a snapshot of a rapidly evolving landscape. Understanding the progression of AI adoption requires a look at key milestones and trends over recent years:
- Pre-2024: Early exploration and limited adoption of AI, often confined to large organizations or specific niche applications. Pilot projects were rare and often experimental.
- 2024-2025: Increased awareness of AI’s potential benefits. More firms began to initiate pilot studies, driven by a desire to understand the technology’s applications in areas like project management, design optimization, and data analysis. The RICS report from 2025 indicated that just over half of construction professionals were using AI.
- March 2026: The RICS professional standard, "Responsible Use of Artificial Intelligence in Surveying Practice," is introduced. This marked a formal recognition of the need for ethical and structured AI integration within the surveying profession.
- 2025-2026 (Reporting Period for the 2026 Report): A significant acceleration in AI adoption across both construction and commercial property. The RICS AI in Commercial Property and Construction Report 2026 reveals that approximately two-thirds of construction professionals and over three-quarters of commercial property professionals are now using AI in some form. The report also highlights the persistent challenge of moving beyond pilot studies to routine practice, with commercial property showing more success in this transition.
Broader Implications and Future Outlook
The implications of these trends are far-reaching. For the property sector, enhanced AI capabilities could lead to more efficient property management, smarter building designs that optimize energy consumption, and improved tenant experiences through personalized services. In construction, AI promises to revolutionize project planning, risk management, safety monitoring, and the optimization of resource allocation. Predictive maintenance, for instance, could significantly reduce downtime and costs associated with unforeseen equipment failures.
However, the challenge of embedding AI into routine practice suggests that the full transformative potential is yet to be realized. The skills gap remains a critical bottleneck, potentially slowing down the pace of innovation and adoption. Furthermore, ensuring data privacy and security will be paramount, especially as AI systems become more sophisticated and handle increasingly sensitive information. The industry’s ability to effectively address these challenges will determine the speed and extent to which AI reshapes the property and construction landscape.
The RICS report serves as a crucial barometer, indicating that while the AI revolution is undeniably underway in property and construction, the path to its full, seamless integration is still being paved. Strategic investment, robust professional development, and a commitment to responsible implementation, guided by evolving professional standards, will be key to unlocking the technology’s ultimate promise. The next few years will be critical in determining whether the industry can successfully transition from widespread experimentation to widespread, impactful AI utilization.
