The AI and Labor Connection

Boosting new-home production to shrink the supply gap and thus enable greater housing affordability faces multiple headwinds, from regulatory red tape to a dearth of skilled labor, that add costs and time to every project.

And while the industry if rife with innovations that pose to alleviate the industry’s chronic labor shortage, one technology—artificial intelligence (AI)—seems conspicuously missing from that conversation. Until now.

Certainly, robotics and volumetric modular, among other building innovations, use AI to affect their production efficiencies. But applying AI more directly in a home builder’s existing operation to augment and even attract available labor, automate and improve estimating, purchasing, and scheduling tasks, and train field workers in real time is not only possible, but in use and proving its value.

A Case for AI and Labor

To be sure, the idea of a software application applied to a decidedly hands-on, on-site work environment seems counterintuitive. And to be clear, AI isn’t being designed or applied to directly replace skilled trades or site leads (at least not yet).

Instead, the technology works behind the scenes to streamline workflows and relieve field workers of repetitive tasks, allowing them to focus on building instead of back-end busywork.

"I don’t think builders are looking to replace jobs," says Sara Williams, president of Aras&Co., which offers technology services and AI coaching for residential builders and developers. "I think they are trying to work smarter with the people they have."

"It’s people with extensive experience in their industry looking to improve a bottleneck," adds Amanda Spann, an entrepreneur and author of I Have an App Idea, which outlines a protocol to develop AI-driven applications. "They’re seeing a recurring issue on their jobsite every day and want to find a way to streamline a process."

Spann points to one entrepreneurial-minded builder who followed her direction to develop an AI-driven app to more easily manage schedules, track production progress, and communicate with subcontractors and team members in real time.

Stone Martin Builders, based in Opelika, Ala., plans to apply AI to its financial analysis and jobsite scheduling. The company spent considerable effort last year to structure its data and documentation for AI to crunch, analyze, and suggest strategies. 

“We will see the fruits of that work this year,” says CEO John Manasco, noting that the builder’s previous success using AI for some human resources functions boosted his team’s confidence to apply the technology elsewhere in its operations. 

Why (and Where) AI Helps

In her book, AI for Residential Construction, published by NAHB’s BuilderBooks, Grace Tsao Mase, an architect, licensed contractor, and AI developer, makes the case for not only where AI has a place in the build process, but why.

“AI adapts to real-world data in real time, adjusting for progress, weather, and resource availability,” she writes, equating it to GPS in its ability to “recalculate the best route whenever conditions shift,” whether it be an oncoming storm, schedule slippage, or overlapping calls for the same sub serving multiple projects—all of which impacts jobsite labor management, performance, and costs. 

The technology also can learn each trade partner’s actual performance patterns, adjusting for realistic timelines “rather than relying on optimistic promises,” she writes, as well as identify and suggest optimal sequencing of subs to minimize downtime, pair those who complement each other and distance those that don’t, and flag potential (read: likely) conflicts weeks in advance to allow for measured solutions instead of panic and chaos.

Attracting and Retaining Labor

It’s probably a reach to directly correlate a builder’s or trade partner’s use of AI as a carrot to attract younger generations to the skilled construction workforce. 

But, in fact, recent studies suggest that Gen Zers (those born between 1997 and 2012), fearing AI will replace white-collar jobs, are increasingly eyeing less-vulnerable blue-collar work as a career path. And a 2025 Harris poll found that 38% of that generation consider skilled trades a faster and less-expensive (read: no college debt) path to a steady income and job security.

At the very least, a young worker might appreciate the mere presence of AI and sophisticated business software within a builder’s operation and perhaps offer insights on how to best leverage it to create efficiencies.

“I strongly believe that’s the case,” says Mollie Claypool, co-founder of AUAR, which uses robotics directed by AI to build wall and floor panels in an on-site micro-factory. The latest tech tools have a cool factor, she says, but they also help improve safety and can counteract negative perceptions when young people consider a career in construction. 

Robotics, to whatever the speed and extent they impact housing production, ease strain on the body, which can reduce injuries and extend careers, and also open the field to non-traditional workers. 

“We have been able to diversify the labor pool,” says Ramtin Attar, co-founder and CEO of Promise Robotics, another offsite panel provider. “We have a lot of women on the floor [because] the work is not as difficult physically as it is on traditional, site-built framing projects.”

Besides recruitment, what may move the labor needle more so is AI’s ability to train and upskill field workers as an effective retention tool. 

Already, companies such as On3 and Smartvid.io use AI to enhance, customize, and deliver specific lessons on demand via mobile or wearable devices across a vast library of vetted building practices. 

“AI-enabled training systems personalize learning based on trade, task, and experience level,” according to a report by CMIC, a software and service provider to the construction industry. “Workers receive guidance that reflects the work they are performing, which improves skill development without slowing site progress.”

AI and Innovation

Surveys of home builders conducted by Home Innovation Research Labs and Pro Builder, collaboratively and independently, consistently reveal a sharp disconnect between their interest in offsite building methods as a means to boost productivity with fewer skilled workers and actually pulling the trigger.

Whether the stumbling block is local capacity to deliver factory-built components or volumetric modules, a real or perceived cost premium, or simple risk aversion, AI has the potential to help lower the risk ... and the threat to profitability.

In her book, Mase cites a builder who applied AI to assess the risk of upgrading specifications and practices to deliver better-performing homes. An AI system simulated how different approaches would affect costs, accounted for a learning curve and the potential for bulk purchasing, and factored in productivity improvements over time.

“Before, these kinds of decisions were educated guesses, but with AI you can see how things might play out before committing,” she writes. “It gave [the builder] confidence to make the transition with a clear understanding of the financial impacts.”

“Now is the time for builders and skilled trade workers to start adopting AI,” adds Kyle Spencer, director of NFPA LiNK, a subscription-based application that delivers digital access to fire safety and suppression codes and standards from the National Fire Protection Association. “Not as a replacement for their craft, but as a tool that helps them do more and stay competitive.”