India's AEC sector accelerates digital shift but faces integration hurdles, says Bluebeam report

India’s architecture, engineering, and construction industry is rapidly embracing digital tools and AI, yet many firms grapple with system interoperability and workforce training challenges, as highlighted by Bluebeam’s 2026 Global Construction Technology Report.

India’s architecture, engineering, and construction (AEC) industry is accelerating its digital transformation, mirroring global trends towards the adoption of advanced technologies such as Building In...

formation Modeling (BIM), cloud collaboration platforms, and artificial intelligence (AI). According to Bluebeam’s 2026 Global Construction Technology Report, released recently, 84% of AEC firms worldwide plan to increase their technology investments in 2026, including those in India, where large infrastructure and real estate companies are taking significant strides in digital integration.

However, despite this momentum, the full digital transformation of project workflows is far from complete. The report highlights that only 11% of firms globally have achieved end-to-end digital integration across all project phases, with nearly half of all projects still reliant on paper-based workflows. This uneven progress reveals a persistent gap between the ambition of digital adoption and its practical execution, a challenge that closely mirrors the Indian landscape. Small and mid-sized Indian enterprises often maintain hybrid workflows, slowing the national transition to fully integrated digital systems.

One of the primary barriers identified by the report is not cost, but system integration. Approximately 23% of respondents cited interoperability issues between different digital tools and platforms as the biggest hurdle. Compounding this challenge is the limited allocation of technology budgets to workforce training, 65% of firms dedicate less than 10% of their tech spending to upskilling. This skill gap slows the adoption of digital tools throughout the construction lifecycle, a concern that resonates deeply within India’s labour-constrained construction industry.

Artificial Intelligence is emerging as a transformative force in construction management, though its adoption remains in the early stages. Globally, only 27% of AEC firms currently use AI, yet 94% of these early adopters plan to expand their AI utilisation in the coming year. The benefits for those who have integrated AI are substantial: 68% of these firms have reported saving at least USD 50,000 per project and reclaiming 500 to 1,000 man-hours, mainly through automation of planning, scheduling, and document management. AI’s strongest application is found in the design and planning phases, where nearly half of firms use AI tools, with over 70% now dedicating up to a quarter of their budgets specifically to AI-related technologies.

Such findings underscore the transformative potential of AI, as well as the current hesitations within the industry, largely driven by concerns over data security and integration challenges. Usman Shuja, CEO of Bluebeam, emphasised that digital transformation should focus less on accumulating tools and more on removing the friction that prevents teams from fully utilising existing technologies. “The real test of AI in construction isn’t hype, it’s the hours it gives back to project teams and the dollars it saves owners,” Shuja commented, highlighting the practical impact of these investments.

Within India, the government’s ambitious infrastructure and urban development initiatives, such as the Smart Cities Mission, Gati Shakti National Master Plan, and PM Awas Yojana, elevate the urgency for fully digitised workflows that can enhance efficiency and sustainability. Sanjay Kumar, Managing Director of Nemetschek India, noted that the country’s construction sector is transitioning from initial technology adoption to deeper integration. Kumar suggested that the next major efficiency gains will arise from connected digital ecosystems that unify information across design, construction, and operations phases, a shift that could redefine infrastructure development and management in India.

Moreover, the Bluebeam report exposes another key insight relevant to India’s workforce challenges: 44% of firms view advanced technology as crucial not only for operational efficiency but also for attracting and retaining skilled professionals. As the construction industry contends with labour shortages and the need for highly trained personnel, integrating cutting-edge digital tools becomes a strategic imperative.

In summary, India’s AEC industry stands at a pivotal moment. While the adoption of digital tools and AI is advancing, significant barriers remain in achieving comprehensive digital integration. These include technical interoperability, workforce training, and data security concerns. Nevertheless, with strong government backing and growing recognition of technology as a means of improving productivity and workforce appeal, the sector is poised for substantial transformation in the years ahead. The challenge lies in bridging the gap between technology promise and practical implementation to fully harness the benefits of the digital age in construction.

Source: Noah Wire Services