1. ServiceTitan's report reveals fast AI adoption in the trades industry. 2. 46% of contractors are already using or testing AI tools. 3. AI is perceived as a major efficiency driver by 74% of respondents. 4. Major barriers to AI adoption are organizational, not technical. 5. 59% prefer AI integrated into software over standalone solutions.
FAQ
Why Bullish?
ServiceTitan's proactive transition towards AI reflects significant growth potential. Historical upticks in tech adoption often correlate with revenue increases, as seen in Gulfshore Air's 53% YoY growth.
How important is it?
The report signals transformative changes in the trades sector, directly relevant to TTAN's business model. As contractors embrace AI, ServiceTitan’s software is positioned to capture increased market share.
Why Long Term?
AI's integration suggests sustained growth beyond immediate gains. Long-term shifts towards AI in operations historically enhance profitability and market positioning.
Increased Efficiency Through AI Adoption: ServiceTitan's 2025 Industry Report
LOS ANGELES, Dec. 16, 2025 (GLOBE NEWSWIRE) -- ServiceTitan (Nasdaq: TTAN), the leading software platform for trades, has unveiled its first annual report focused on artificial intelligence (AI) in the skilled trades. The report reveals that contractors are rapidly adopting AI technology, marking a transformative shift in how field service companies operate.
Key Insights from the 2025 AI in the Trades Report
The report, which surveyed over 1,000 contractors across various residential and commercial sectors, highlights several critical findings:
- Transformative AI Adoption: Nearly half of the respondents (46%) indicated they are already using or testing AI tools.
- Efficiency Enhancement: A significant 74% of contractors believe AI can improve efficiency and productivity.
- Organizational Barriers: Over 44% of participants cited a lack of training as a primary hurdle in AI adoption.
- Embedded AI Tools: About 59% of respondents prefer AI features integrated directly into their daily software.
- Operational Impact: AI is extensively used in administration (59%), marketing, sales (51%), and customer service (39%).
AI as a Transformative Tool for Contractors
ServiceTitan's report demonstrates that AI is not just a futuristic concept but a practical and valuable operational tool. The study showed that companies like Gulfshore Air have successfully leveraged AI, reporting a remarkable 53% year-over-year revenue growth since implementing AI solutions. Contractors overwhelmingly view AI as a means to enhance productivity, decision-making, and reduce operational costs.
Addressing Barriers to AI Adoption
Despite the positive outlook, some contractors remain cautious. Key barriers identified include:
- Lack of Training: 44% of businesses cited insufficient training as a significant barrier.
- Integration Challenges: 38% struggled with understanding how to effectively integrate AI tools into their processes.
- ROI Clarity: 37% of respondents want more clear use cases and return on investment guidance.
However, only 18% of contractors reported employee resistance to AI, indicating openness within the workforce to embrace these technologies.
Preference for Embedded AI Solutions
The survey found that contractors favor AI that is seamlessly integrated into existing software systems. This aligns with a broader trend in technology where businesses seek comprehensive, workflow-integrated solutions. Specifically, 59% of respondents opted for AI features built into their current tools, overshadowing standalone solutions.
Operational Efficiency at the Forefront
AI's influence is not confined to one aspect of business; it permeates operations across various functions. The highest usage of AI was reported among administrative tasks, followed closely by marketing, sales, and customer service efforts. This reveals a strong focus among contractors on leveraging AI to streamline operations and tackle high-volume, repetitive tasks effectively.
Conclusion and Future Outlook
ServiceTitan's findings underscore a significant opportunity for the trades industry to embrace AI technologies as a means of driving efficiency and innovation. As contractors increasingly recognize AI's potential, the industry is poised for a transformation that benefits both businesses and their clients.
For a deeper dive into the findings and insights from this pivotal report, download the AI in the Skilled Trades Report from ServiceTitan.
About ServiceTitan
ServiceTitan is a leading software platform that supports trades businesses with an integrated cloud-based solution. The company empowers contractors to effectively manage their operations, back office needs, and enhance customer experiences, ensuring these essential services thrive.