No acceleration without AI: construction industry reaches tipping point in 2026 

The European construction industry can no longer meet the growing housing and renovation challenge with traditional methods. So says 4PS in its Trend Report 2026 - Construction in transformation. Without far-reaching digitization and deployment of AI, productivity lags structurally, while pressure on capacity continues to increase. 

Pressure on the industry   

Demand for new housing, preservation and renovation is increasing, while the number of technically skilled workers continues to decline. At the same time, the construction industry is digitizing unevenly: a large proportion of companies are still working with fragmented data and limited automation. European analyses show that this very lag severely limits the ability to scale up. 

AI: from buzzword to necessity 

According to Marjon Scholten of PwC, AI in construction is rapidly evolving from experiment to necessity. “The sector can only keep up with rising demand if labor productivity goes up,” she argues. Although the Netherlands is leading the way in pilots and applications, she says an organization-wide data structure and a clear AI strategy are often lacking, limiting the impact. 

Dirk Hoogenboom of USP Marketing Consultancy also sees that AI is still only used to a limited extent in everyday construction practices. Only a small portion of architects and contractors are actively using AI in ongoing projects. At the same time, he says, a clear breakthrough is emerging in design, data management and planning. “Just when European policy frameworks explicitly link digitization and AI to economic growth, stagnation becomes a risk.” 

Industrializing construction as an accelerator  

The 4PS Trend Report 2026 shows that AI in construction only delivers structural value when processes are standardized and made suitable for industrial production. Loose digitization initiatives remain stuck in project-level efficiency gains, according to the researchers, whereas scale and predictability are needed to truly increase productivity. “AI needs consistent data and repeatable processes,” Scholten said. “Without standardization, the effect remains limited.”  

That standardization touches directly on the rise of prefabricated and industrialized construction. Digital workflows and factory production reinforce each other, but require stability in policies, permits and construction sites. Companies invest in industrial capacity only when projects are predictable and order books offer sufficient security. Those preconditions are currently under pressure, while housing production in Europe is actually declining. 

The result is an area of tension: the technology is available, but circumstances inhibit large-scale application. Without consistent policies and long-term construction programs, AI and industrialization remain stuck in pilots, while the sector needs acceleration to meet the housing challenge. 

More technically complex work requires smart support 

Construction is becoming more technically complex due to stricter sustainability requirements, more extensive regulations and a growing number of installations. According to the trend report, AI can help make this complexity manageable, for example in document analysis, risk assessment and quality control. Thus, AI is shifting from experimental technology to practical support in both project preparation and execution. 

Resilience requires acceleration, not wait and see 

Despite geopolitical uncertainty and economic pressures, the construction industry continues to invest in infrastructure and sustainability. Large projects continue, but margins are shrinking and complexity is increasing. This is precisely why the need to work smarter is growing. According to the 4PS Trend Report 2026, AI, digitization and industrialization are no longer visions of the future, but preconditions for remaining resilient.