ServiceTitan released its first annual industry report focusing on AI in the Skilled Trades. The report surveyed over 1,000 contractors across multiple residential and commercial verticals and found that trades businesses are moving fast to adopt AI, and shaping how the next generation of field service companies operate. ServiceTitan’s inaugural report uncovers how AI is being adopted today, the obstacles contractors face, and where innovation is accelerating across the trades.

“We have a once-in-a-generation opportunity to modernize an industry that is essential to everyday life, and ServiceTitan is building not just software, but the core operating system that will support our customers in winning their own AI race," said Vahe Kuzoyan, president and co-founder of ServiceTitan. “We’re freeing contractors from administrative burdens so they can focus on craftsmanship, customer care, and solving the important problems their businesses face. The companies that thrive will be those that treat AI not as a threat, but as a force multiplier that elevates both their people and their performance.”

Key findings from the 2025 AI in the Trades Report include:

AI adoption is already underway and seen as transformative

AI in the trades is no longer a future concept but a present-day operational tool. It is already delivering measurable value with nearly half of survey respondents (46%) already using or experimenting with AI. For example, Gulfshore Air, a full-service air conditioning and heating company, reported in July 2025 that they have already seen significant gains with the company, having grown revenue by 53% year-over-year. Contractors largely believe AI is relevant (72%) and will meaningfully transform the industry within 1–3 years (66%), which are primary factors driving adoption. 

AI’s superpower: efficiency

Similarly, contractors overwhelmingly view AI's greatest potential in improving efficiency and productivity (74%), enhancing decision-making (51%), and reducing operational costs (48%). Across both residential and commercial sectors, AI is primarily viewed as an efficiency engine, ultimately indicating that AI drives measurable value across organizations of all sizes.

The biggest barriers are organizational, not technical

While perception of AI is favorable, some still remain cautious. Respondents report that the primary hurdles to wider adoption are not technological limitations, but human factors. A lack of training or skilled staff and integration challenges are the top two barriers for nearly half (44%) of contracting businesses in the survey, followed by difficulty understanding how to use the tools (38%) and a lack of clear ROI/use cases (37%). Meanwhile, employee resistance is low (18%), showing workers are open to AI but need guidance and support. The companies that invest in training and support integration planning are more likely to overcome the main barriers and unlock the full potential of AI. 

Contractors prefer AI built directly into their software

In practice, the dominant AI adoption path centers on embedded, workflow-integrated tools, instead of standalone solutions. This trend fits the broader story unfolding across other industries, where platform consolidation and merger and acquisition activity have gained momentum in the past year. According to 59% of respondents, the most common type of AI used is features built into existing software. This preference for embedded tools significantly outpaces general-purpose tools (42%) and custom-built systems (8%). These insights suggest that businesses value AI that integrates directly into their core workflows and use general tools mainly to fill any existing gaps. 

AI’s biggest business impact is operational

AI is not being used in just one part of the business – its impact is horizontally distributed across the field, front office, and back office. ServiceTitan’s survey found that the highest current use and impact are centered on administration (59%), which leads AI adoption, followed closely by marketing and sales (51%). Then, customer service and communication, and field operations are showing equal traction with 39% of contractors reporting usage of the technology across these business functions.

The data shows that trades businesses are turning to AI to address their most immediate operational challenges, focusing first on high-volume, repetitive tasks to streamline core processes and ultimately, improve efficiency. 

To review the full findings and key takeaways, download ServiceTitan’s AI in the Skilled Trades Report here.