In a business that’s so heavily driven by people — how efficiently they are utilized, how productive they are in their work, how good they are at collaborating, how effective they are at cultivating relationships — it can be tempting to marginalize the impact technology can have on an architecture, engineering or construction (AEC) firm. Sure, artificial intelligence, cloud computing, integrated digital environments and the like are nice to have. But can they really make a measurable difference to an AEC business?
As findings from a newly released AEC industry report illustrate in no uncertain terms, firms that discount the potential value of technology to their business do so at their own risk. In fact, according to results of the 2025 AEC Inspire Report from Unanet [available for free download here], which is based on a survey of more than 300 senior-level AEC industry executives, technology is proving its value as a multiplier and amplifier of human capabilities, empowering firms to get more out of their data, people, projects and relationships.
Compared to their less tech-focused peers, tech-mature AEC firms “win more bids, deliver more projects on time, accelerate cash flow, and more frequently report positive indicators of organizational growth and profitability,” the report asserts.
The edge for tech-mature firms is striking in such key performance indicators as win rate, where they outperform less tech-focused firms by 19 percentage points (see the graphic below). They are also significantly more likely to have increased their revenue year-over-year, and to have delivered at least three-quarters of their projects on time.
Even the seemingly narrow three-percentage-point edge that tech-mature AEC firms hold in the utilization rate category can translate into a sizable revenue advantage. If you’re a midsized AEC firm, getting three percent more billable time out of your staff could mean hundreds of thousands of dollars to the bottom line.
“Whether the goal is to increase revenue, enhance valuation, or scale sustainability, this year’s report highlights that investing in technology — from the tools to training and processes — is more critical than ever for firms seeking a major competitive advantage,” we conclude.
AEC executives themselves are recognizing the business value of technology, with 83% of survey respondents assessing their firms as either somewhat or very tech-mature. “In just the past 24 to 36 months, technology has unlocked massive potential for firms willing to lean in,” observes Gregory Hart, president of PSMJ Resources Inc. “Even modest [technology] investments can open doors to smarter ways of working. If you’re developing a strategic plan, digital transformation can’t be a side note — it has to be central.”
Documenting AI’s Ascendance
Artificial intelligence is among the tools that are helping firms climb the tech-maturity curve. More than half — 55% —report using AI in some capacity. Another 28% are intrigued by AI but currently not using it, while 16% have yet to employ AI at all. We expect the universe of non-AI-users to shrink quickly as more AEC firm decision-makers recognize the competitive value it can provide to a business — and that their firm could be left in the dust by peers that are more mature in their AI usage.
Among those that are already using AI, the most common use cases come in the areas of business development and IT; AI adoption lags in project management and finance/accounting. Rather than viewing AI as a tool to replace people, AEC executives see it primarily as a workforce enhancer. Two-thirds of respondents expect AI to help employees work faster, and just over half believe it will enhance employees’ performance — without reducing headcount.
One AI-related red flag to note: Of firms that do use AI, two-thirds lack clear policies or procedures for its governance, leaving them exposed to risks related to data stewardship, accuracy, security, and ethical considerations. Here’s an area where AI-enabled AEC firms clearly need to be more intentional and diligent to protect themselves from the risks that AI can bring.
Keys to Unlocking the Power of Technology
Even the most highly touted (and highly priced) software, AI and tech tools are apt to underperform unless a firm has a strong fundamental foundation of data to support them. For example, as heavily as AI relies on fresh, accurate and comprehensive data to deliver value in terms of efficiencies and insights, a large share of firms — 60% — say they are only “somewhat confident” in the quality of their data. While one-quarter are very confident in the quality of their data, 16% say they are not confident in their data.
Conversely, data is only as valuable as the tools a firm uses to leverage it. And that doesn’t appear to be a strong suit for AEC companies, almost half of which say their tools for data integration and analysis are inadequate. Close to 40% say they are plagued by missing or inaccurate data, and one-third have issues with access or availability to data, “meaning that, even when data is collected, it is not necessarily centralized or easy to use for decision-making,” we posit in the report.
For its ability to create a centralized data repository and enable data to flow freely within an organization, technology integration — and software integration in particular — is another foundational element firms must have in place to maximize the value of their tech investments. Firms that lack integration among key business software systems (enterprise resource planning, customer relationship management, etc.) likely will deal with data siloes that hamper not just the free flow of data, but the deeper analysis that leads to better, timelier decision-making on specific projects and at the big-picture strategic level. More than three-quarters of firms report that their technology systems are only partially integrated or not at all, while about one-quarter report their systems are fully or mostly integrated.
The Tech and Talent Connection
Deployed wisely, technologies like AI also can help AEC firms address some of their most pressing business issues, including the issue that tops their list of challenges: talent.
Two-thirds of survey respondents cite talent challenges as one of their top three industry concerns, surpassing economic uncertainty and competition for new business. A longstanding issue in many industries, attracting, developing and retaining skilled professionals is a real concern for AEC firms, as human resource-intensive as their business is.
Here’s an area where the right combination of technology capabilities can really make a difference, helping firms get a better handle on their current project backlog, their incoming pipeline and their overall resource capacity so they gain a better understanding of their hiring needs. With a clearer picture of their resource needs, they can get out into the talent market faster than their competitors. This can provide a decided edge in accessing the kind of seasoned, skilled people that AEC firms are clamoring for but who are in short supply nowadays.
Forecasting capabilities are essential to meeting today’s resource and talent challenges. By applying forecasting tools to integrated data on project backlog, pipeline and resource capacity/availability, firms can accurately predict hiring needs and plan for upcoming projects proactively, avoiding last-minute hiring scrambles and ensuring effective resource allocation. That in turn yields better outcomes for the business as a whole, and on individual projects. Without this level of visibility, firms risk either over-resourcing or under-hiring, both of which carry significant financial consequences.
Talk to enough AEC firm leaders these days and they’ll tell you these talent risks are very real. Many, in fact, have told me in informal conversations that resource constraints and hiring challenges have forced them to pass on potential new business they likely otherwise would have pursued. That’s a clear sign that some AEC firms are struggling to attract and retain talent. As the report notes, “Resourcing challenges are persistent, widespread, and significant” in the AEC industries.
That puts the onus on firms to distinguish themselves in the eyes of the people they’re seeking to hire. Technology can help in that regard. A firm’s ability to demonstrate that it equips its employees with tech tools to help them excel in their work, without a lot of friction, and that enable them to work smarter, not longer, can provide a big edge in attracting workers who expect access to high-end tech, and who value work-life balance. On the other hand, firms that continue to rely on outdated technology, non-integrated systems and time-consuming manual processes will struggle to attract and retain people.
How Tech Bolsters Business Development
On average, AEC firms win just over half their bids, a solid rate that nonetheless leaves room for improvement. And not surprisingly, companies that identify as tech-mature hold an edge over their less tech-mature counterparts in their win rate: 55% to 49%, underscoring the value that the right business development tech tools can add to a business.
While firms on average are churning out many more proposals annually (345 in our 2025 report compared to 188 in 2024), almost half of the firms we surveyed reported a win rate of 50% or less. Several data points from the report illustrate why that’s the case:
- 47% of respondents cite poor adoption rates of business development tools as a significant challenge, up from 35% in 2024.
- One-third struggle with siloed data and limited reporting functionality.
- 20% lack a CRM system entirely.
- Just 40% of firms consistently use a formalized Go/No-Go process in evaluating opportunities.
As we point out in the report, “These gaps in usage, access, and availability of business development tools and data carry significant implications for firms’ abilities to optimize sales activities.” At minimum, firms that lack a digital CRM system would be wise to invest in one, as that, along with robust employee training to ensure they actually engage with the CRM tools at hand, are vital to a firm’s ability to identify and win the kinds of opportunities they covet.
Even better if the CRM system comes with AI-driven capabilities that analyze past pursuit and project data to provide deeper insight to BD teams in the early stages of their pursuits, so they don’t waste resources chasing business they have a low chance of winning, or that’s unlikely to hit firm profitability targets, for example. Further down the sales funnel, AI also can help firms gather, refine and package content for proposals, and ensure that content tracks to specific RFP requirements. This boosts both the quality and quantity of a firm’s proposals.
Based on KPIs like net profit, win rate, and percent of projects delivered on or ahead of time, and on or under budget, AEC firms on the whole are performing well enough. But with better data and better technology, how much could your firm beat those benchmarks — and put itself in a better position to grow, year in and year out?
Lucas Hayden leads AEC strategy at Unanet, helping architecture, engineering, and construction firms solve problems, drive innovation, and achieve scalable growth through purpose-built technology. https://unanet.com/
