Residential contractors remain AI-skeptical early on, report finds

The use of artificial intelligence in residential contracting is still in its early stages, with only a minority of contractors fully integrating AI into their workflows.

That said, interest in leveraging new technologies is steadily increasing across the industry.

That was one of the main findings from ServiceTitan’s 2026 Residential State of the Trades report released on Tuesday. The report surveyed over 1,000 residential contractors to gather insights on how they view the market and are integrating AI. 

About 25% of residential contractors are using AI in a meaningful way, the report concluded. 

Angie Snow, Principal Industry Advisor at ServiceTitan, told The Builder’s Daily that many of the remaining 75% of contractors that haven’t yet embedded AI into their workflows are giving it a look, even if they haven’t fully adopted it. 

“They’re experimenting, but they don’t really fully have it embedded in their workflows. And I think that’s where that 25% stands out. I think because AI is still so new for all of us, there’s a lot of opportunity to embed AI fully into our work and really start streamlining it with what we’re doing,” Snow said. 

The report concluded that nearly half of contractors lack trust in AI, indicating that there is still a lot of hesitancy and skepticism about the latest technology. 

The highly fragmented nature of residential contracting, with many small or individual operators, is also a factor in the industry’s resistance to adopting AI more comprehensively. 

For example, the Harvard University Joint Center for Housing Studies estimates that over half of residential remodeling businesses with payrolls generate less than $250,000 in annual revenue. 

Smaller operators often have a more difficult time adopting the latest technology. However, Snow, a former HVAC and plumbing contractor, said that small contractors often benefit the most from technology. 

“As a smaller company, you’re wearing a lot of hats. You’re working in the financials, HR and admin. You’re doing the accounting and the marketing. You’re doing all of it, which is where I think this is such a huge opportunity, especially for small contractors, to really start adopting AI. I think it can really help them streamline a lot of what they’re doing, and help them scale and grow,” she said. 

According to the report, labor and overhead, the skilled labor shortage and increasing material prices are the three most cited business risks for 2026.  53% of contractors are prioritizing existing customers, compared with 31 percent focused on acquiring new ones.

“We have to spend a lot of money to get a lot of leads and to get the phone to ring,” Snow explained. 

The report also concluded that 73% of customers cite clear, upfront pricing as a primary reason for choosing a contractor, suggesting that companies that don’t offer it may miss out on attracting clients.   

AI in residential contracting

ServiceTitan is one of many companies that offer AI and software solutions for residential contracting companies. The company offers a cloud-based software platform that acts as a CRM, scheduling, invoicing, marketing and dispatching tool for residential and commercial contractors.

ServiceTitan, Snow says, recently developed a new AI assistant called Atlas, which acts like a built-in sidekick that helps users generate reports, analyze metrics and navigate the ServiceTitan platform more effectively. 

The Home Depot also recently expanded its pro digital platform, which has AI-driven estimating and project-management tools for contractors. 

Select companies in the industry have also developed their own technology. For example, West Shore Home, a large remodeling company with national reach, developed its proprietary Scan-to-Plan technology, which enables its team to offer 3D digital visualizations of projects for customers. 

SAPOS, another proprietary West Shore Home technology, uses AI agents to automate project scheduling at the point of sale. It does so by analyzing inventory, installer availability and permitting requirements. Most jobs can be scheduled automatically, which enhances customer certainty and frees up employees’ time.