Majority of Contractors Are Already Seeing Increased Efficiency From AI Adoption, ServiceTitan Industry Report Reveals

Rhea-AI Summary

ServiceTitan (Nasdaq: TTAN) released its 2025 AI in the Skilled Trades report based on a survey of over 1,000 contractors on Dec 16, 2025. Key findings:

• 46% of respondents are already using or experimenting with AI.
• 59% prefer AI features embedded in existing software versus standalone tools.
• 74% say AI’s top value is efficiency; 51% cite better decision-making.
• Primary adoption barriers are training/staff and integration issues (44%), not employee resistance (18%).
• Operational use leads: administration 59%, marketing/sales 51%, field & customer functions 39%.

The report highlights rapid, workflow‑integrated AI adoption across trades and cites Gulfshore Air reporting 53% revenue growth YoY after AI use.

Positive

• 46% of contractors are using or experimenting with AI
• 59% prefer embedded AI features in existing software
• 74% view AI as an efficiency and productivity engine
• Administration AI adoption at 59% across respondents
• Marketing and sales AI adoption at 51% across respondents
• Gulfshore Air reported revenue +53% year-over-year after AI use

Negative

• 44% cite lack of training or integration as primary adoption barriers
• 37% report unclear ROI or use cases for AI
• 38% find difficulty understanding how to use AI tools

Key Figures

Contractors surveyed over 1,000 2025 AI in the Skilled Trades Report sample size

Currently using/experimenting with AI 46% Share of survey respondents already using or testing AI

Gulfshore Air revenue growth 53% YoY Reported revenue growth in July 2025 after AI adoption

Perceive AI as relevant 72% Contractors who see AI as relevant to their business

Expect AI to transform industry 66% Contractors expecting meaningful AI impact in 1–3 years

View AI’s greatest potential in efficiency 74% Respondents citing efficiency/productivity as top AI benefit

Lack training/integration as main barrier 44% Businesses citing training or integration as top AI hurdle

Prefer embedded AI features 59% Respondents primarily using AI built into existing software

Market Reality Check

$107.53 Last Close

Volume Volume 919,312 is about 25% below the 1,226,616 share 20-day average, suggesting limited pre-news participation. normal

Technical Shares at $103.11 are trading below the 200-day MA of $104.77, indicating a modestly weaker intermediate trend before this AI report.

Peers on Argus

TTAN was down 0.92% while key software peers like PCOR (-2.62%), APPF (-2.86%), PAYC (-2.60%), and MANH (-2.51%) also declined, pointing to broader software pressure rather than a TTAN-specific move tied to this AI report.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 12	Brand/community initiative	Positive	-1.9%	Highlighted Day of the Trades community projects and workforce initiatives.
Dec 04	Customer win/expansion	Positive	+2.4%	TIMEPROOFUSA and Master Roofing chose ServiceTitan for nationwide expansion.
Dec 04	Earnings results	Positive	+2.4%	Reported Q3 growth in GTV and revenue with positive non-GAAP income.
Nov 06	Earnings date notice	Neutral	+2.4%	Announced timing for Q3 FY2026 results and conference call details.
Oct 15	Conference/product showcase	Positive	-2.8%	FieldRoutes growth data and AI-focused session at PestWorld 2025.

Pattern Detected

Recent news with clear commercial or financial positives (new platform wins, earnings beats) has generally seen aligned positive moves, while promotional or event-focused news has occasionally met selling pressure.

Recent Company History

Over the last few months, TTAN has reported several notable developments. On Dec 4, fiscal Q3 results showed strong growth in GTV and revenue with improving non-GAAP profitability, and the stock rose about 2.4%. The same day, new enterprise wins in roofing supported the growth story with a similar price reaction. Earlier, AI-focused product showcases at PestWorld 2025 and community- and workforce-oriented initiatives like Day of the Trades drew more mixed share responses. Today’s AI adoption report continues the theme of positioning TTAN as an AI leader for contractors.

Market Pulse Summary

This announcement highlights that 46% of surveyed contractors already use or experiment with AI, with 74% seeing its greatest value in efficiency and 59% preferring AI embedded in core software. For TTAN, it reinforces a narrative that its platform is aligned with how trades businesses want to adopt AI. Investors may watch how such adoption trends translate into metrics like revenue growth, margins, and product attach rates in future earnings reports.

Key Terms

ai technical

"AI in the trades is no longer a future concept but a present-day operational tool."

Artificial intelligence (AI) is technology that enables machines to mimic human thinking and learning, allowing them to analyze information, recognize patterns, and make decisions. For investors, AI matters because it can improve how businesses operate, create new products, or identify opportunities faster and more accurately than humans alone, potentially impacting company success and market trends.

roi financial

"followed by difficulty understanding how to use the tools (38%) and a lack of clear ROI/use cases (37%)."

Return on investment (ROI) measures how much money an investor makes or loses relative to the amount they put in, expressed as a percentage. It helps compare the efficiency of different investments—like checking which of several gardens produced the most fruit for the seeds planted—so investors can decide which opportunities deliver the best payoff for the risk and capital they commit.

AI-generated analysis. Not financial advice.

Contractors Favor Frictionless Tools—59% of Survey Respondents Using AI Adopt AI Features Already Built into the Software They Use Every Day

LOS ANGELES, Dec. 16, 2025 (GLOBE NEWSWIRE) -- ServiceTitan (Nasdaq: TTAN), the software platform that powers the trades, today 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.

About the research
This research was conducted by Thrive Analytics on behalf of ServiceTitan, polling more than 1,000 contractors. The survey was conducted from October 23 to November 12, 2025. The survey results and observations presented herein are based on responses from a specific sample of participants and should not be interpreted as representative of the trades industry, broader populations or market conditions. Survey methodologies, sample sizes, and response rates may affect the reliability and applicability of the results. ServiceTitan makes no representations or warranties regarding the accuracy, completeness, or reliability of the survey data or analysis presented. This content may contain forward-looking statements based on survey findings. Such statements are subject to risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied.

About ServiceTitan
ServiceTitan is the software platform that powers trades businesses. The company’s cloud-based, end-to-end solution gives contractors the tools they need to run and grow their business, manage their back office, and provide a stellar customer experience. By bringing an integrated SaaS platform to an industry historically underserved by technology, ServiceTitan is equipping tradespeople with the technology they need to keep the world running.

Press Contact
Max Wertheimer
ServiceTitan, Inc.
Press@servicetitan.com

© 2025 ServiceTitan. All rights reserved. ServiceTitan, the ServiceTitan logo, and all ServiceTitan product and service names mentioned herein are registered trademarks or unregistered trademarks of ServiceTitan, Inc. in the United States and other countries. Other brand names and marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

FAQ

What did ServiceTitan report about AI adoption among contractors (TTAN) in Dec 2025?

ServiceTitan reported 46% of contractors are using or experimenting with AI and 59% prefer embedded AI features.

How does AI affect contractor operations according to ServiceTitan (TTAN)?

Contractors say AI drives efficiency (74%), improves decision-making (51%), and reduces costs (48%).

What are the main barriers to AI adoption for contractors in the TTAN report?

Primary barriers are lack of training/staff and integration challenges (44%), plus unclear ROI (37%).

Which business functions show the highest AI usage in the Dec 2025 TTAN report?

Administration leads at 59%, followed by marketing/sales at 51%, with field and customer functions at 39%.

Does ServiceTitan (TTAN) say contractors prefer embedded AI or general-purpose tools?

Yes — 59% prefer AI features built into existing software versus 42% using general-purpose tools.

Did any contractor report measurable financial gains after adopting AI in the TTAN report?

The report cites Gulfshore Air reporting 53% revenue growth YoY after AI adoption.