ServiceTitan, the software platform that powers the trades, has released its The Update: 2026 State of AI in the Trades Report, its second report examining the adoption and impact of artificial intelligence across the trades. Based on a study of over 1,000 residential service contractors across the US in HVAC, electrical, plumbing, roofing, and other sectors, the findings reveal a rapidly maturing AI landscape, as contractors move beyond questions about the technology’s relevance and increasingly focus on how to effectively apply AI to their businesses.

“Over the next few years, the businesses that pull ahead will be the ones that weave AI into the fabric of their operations,” said Abhishek Mathur, chief technology and product officer at ServiceTitan. “Every job, every customer interaction, every dispatch decision becomes a learning moment that will improve future performance and while increasing efficiency of operations”

AI Adoption is Growing and Delivering Measurable Productivity Gains

Contractors’ conviction around AI is deepening, with 77% now calling AI relevant to their industry and 69% expecting it to transform the trades within the next one to three years. Active engagement with AI increased from 46% in December 2025 to 52% in September 2026, while the share of contractors watching from the sidelines declined from 22% to 18%. Among AI users, 64% report productivity gains and 55% report faster decision-making. Sixty-six percent say AI saves them at least three hours per week, including 40% who report saving five or more hours each week. While these efficiency gains are significant, fewer than half currently report improved profitability (47%) or increased revenue (43%), highlighting an opportunity to translate productivity into broader business outcomes.

Workforce Challenges are a Leading Driver of AI Experimentation

Difficulty hiring and the workforce gap is the top reason contractors cite for experimenting with AI (37%), followed by providing off-hours support (34%) and reducing operating costs (33%). The findings suggest contractors are looking to AI to help extend the capacity of their existing teams and support operational needs amid persistent workforce pressures.

The Biggest Barriers Have Shifted From Cost To Understanding How To Use AI Effectively

High purchase cost fell 12 percentage points from the previous survey to 17%, ranking last among the key barriers measured. Instead, 44% of contractors cite understanding how to use AI in their business as a barrier, 43% point to a lack of clear use cases, and 40% cite integration with existing software. The shift suggests contractors are increasingly focused on how to successfully implement AI and generate meaningful value from the technology.

Contractors Want AI Built for the Way They Work

As contractors look for clearer paths to implementation, 38% say AI trained on trade-specific data would encourage greater adoption, second only to clearer ROI at 40%. Additionally, 61% of users prefer AI and automation to be built directly into their core platform, pointing to growing demand for technology designed around the specific workflows and operational needs of the trades.

AI Adoption is Outpacing Trust

Despite growing usage and demonstrated productivity benefits, only 11% of contractors place high or complete trust in the AI tools they use, while 58% report little or no trust. Among AI users, accuracy and reliability are the leading concern, cited by 35%, underscoring the importance of trustworthy technology grounded in relevant data and designed around real-world trade workflows.

To view the full findings and key takeaways, download ServiceTitan’s 2026 State of AI in the Trades Report here.