Innovation

How Builders Are Using AI to Unlock Massive Growth

Design firms are using AI to rapidly iterate computer-aided design layouts.

Updated on

October 4, 2025

AI construction — AI is only as strong as the data it can access. (Photo: Courtesy)

Artificial intelligence is gaining a firm foothold in the construction industry, shaping not only how future demand is forecast, but also how contractors operate on the ground today.

A new report from Merlo America, developed in collaboration with predictive intelligence firm BiltData.ai, maps out construction demand across the US to 2030.

Using AI-driven modelling, the system combined demographic data, economic indicators and past construction activity to predict how spending will grow and where it will concentrate.

According to the forecast, national construction spending is expected to rise from $1.553 trillion in 2025 to $1.889 trillion by 2030 — a 4% annual growth rate.

But that growth will be far from evenly distributed. Just five states — California, Texas, Florida, New York and New Jersey — are projected to account for 42% of total spending.

At a metro level, 35 regions will represent 64% of the market, with New York–Newark–Jersey City alone reaching $162.2 billion. “New York’s construction spending alone could rival the economy of a small country,” the report notes.

The forecast also highlights a sharp rise in industrial construction, much of it driven by a data centre boom. “Data centres are emerging as a powerful driver of construction and industrial activity,” the report said.

These facilities, needed to support cloud computing, AI, and 5G infrastructure, are set to dominate the next phase of growth. Washington DC is expected to lead the market with 3,000MW of capacity, followed by Dallas–Fort Worth with 1,500MW.

But the story doesn’t end with where construction will happen. The more pressing question is how contractors will position themselves to capitalise on it.

“We’re seeing significant investment across all stages of the construction lifecycle, but especially in design, bidding and on-site operations,” said Brian Kassalen, principal at Baker Tilly.

“In design, firms are using AI to rapidly iterate computer-aided design (CAD) layouts and simulate different structural scenarios.”

He added, “During procurement, AI is playing a major role in bidding, estimating and analysing market data to select the most cost-effective vendors.”

On site, AI is increasingly combined with drones, cameras and robotics. “AI-enabled drones and cameras compare current conditions to digital models in real time, cutting down on delays, rework and wasted labour hours,” said Kassalen.

Despite this, many firms are hesitant. “AI is only as strong as the data it can access and learn from,” he warned. For many, the biggest challenge isn’t the technology — it’s the data.

As forecasts become more precise and tools more powerful, the next decade of US construction will be shaped by those who can bridge that gap — turning prediction into performance.