Pay BillBy Mason Murphy, CPA, CCIFP, BMSS Manager
At BMSS Advisors & CPAs, we work closely with construction companies across a wide range of growth stages, and one trend has become increasingly clear: firms that began adopting AI, even in limited, back-office applications, just a few years ago are now operating at a fundamentally different level than their peers. And that gap is continuing to widen.
Recent industry data reinforces what we’re seeing firsthand. Firms that initiated early AI pilots are now integrating these tools into daily operations, while others are still evaluating where to begin. As a result, the opportunity to adopt AI without disruption is narrowing.
What’s Driving This Shift?
Three structural forces are reshaping the construction industry:
- Accelerating AI adoption among early movers. While only a portion of firms currently use AI, the overwhelming majority plan to expand usage significantly in the near term. Early adopters are gaining momentum, not slowing down.
- A persistent labor shortage. A large percentage of the current workforce is approaching retirement, with insufficient younger talent entering the field. The industry cannot rely solely on hiring to meet demand. It must improve productivity with existing teams.
- Increased interest from capital providers. Firms with scalable systems, consistent margins, and reduced dependence on key individuals are more attractive to private equity, lenders, and sureties. Technology-enabled operations are becoming a differentiator.
These are not emerging trends; they are current operating conditions.
Where AI Is Delivering Measurable Value
Today’s most impactful applications of AI in construction are practical, accessible, and focused on improving core business functions:
- Financial forecasting and cost estimation
AI can analyze historical job data, identify margin trends, and improve bid accuracy thereby reducing risk on fixed-price contracts. - Contract review and risk identification
Automated tools can quickly flag key clauses, compliance requirements, and change order risks, significantly reducing manual review time. - Document management and reporting
Routine processes such as RFIs, submittals, and closeout documentation can be streamlined, improving efficiency and consistency. - Scheduling and resource planning
AI can identify potential conflicts across labor, materials, and subcontractors before they impact project timelines.
Even modest efficiency gains can have a meaningful impact. For example, saving a project manager just a few hours per week can translate into hundreds of additional productive hours annually without increasing headcount.
Why Many Firms Haven’t Acted Yet
For most construction companies, the barriers to adoption are not financial; they are operational:
- Limited internal expertise
- Concerns around tool complexity
- Resistance to change
- Inconsistent or incomplete data
Data quality, in particular, is critical. AI solutions depend on reliable inputs. If job costing, WIP reporting, or project documentation lack consistency, addressing those gaps is a necessary first step.
Where to Begin
For firms that have not yet explored AI, the key is to start with focused, high-impact use cases rather than waiting for a comprehensive strategy.
In our experience, the most effective entry points are:
- Financial forecasting and job costing analysis
- Contract management and risk review
These areas typically offer strong returns, manageable implementation, and alignment with existing accounting and operational processes.
At BMSS, we work with construction clients to assess their AI readiness, identify practical starting points, and ensure the necessary data and processes are in place. Our goal is to help you evaluate solutions strategically—without unnecessary complexity or investment.
If you are considering how AI could fit into your business, we welcome the opportunity to have that conversation. Reach out to our experienced BMSS construction team to help identify strategic first steps. Visit our website or reach out to a local BMSS office.