Engineering Firms Believe in AI, But Most Aren’t Set Up to Use It Yet

In 2026, AI is continuing to impact the engineering industry in a big way.  

In the 2025 Architecture and Engineering Industry Benchmark Report, 73% of engineering respondents selected automation and AI as the most impactful industry trend. The 2026 Engineering Industry Benchmark Report shows that view has held: 72% of firms say the same this year. 

Last year, engineering firms were most interested in AI-driven design tools. Now, the focus has shifted toward AI as a tool for cutting through administrative work, improving productivity, and generating better business intelligence. 

Broader Software Adoption Across the Stack

Technology adoption is growing across engineering more broadly. Financial and invoicing software is now used by 91% of firms, up from 89%. Time tracking and resource management has grown from 64% to 78%. Project management software from 59% to 70%, and BIM software from 46% to 57%.

The growth signals an industry that recognises the value of connected systems. But adoption alone doesn’t tell the full story. Many firms report that resourcing software and BIM tools have delivered only moderate efficiency gains, and CRM adoption, as well as perceived value, remains low across the board. Having the tools is a starting point for firms, not an immediate result.

The Real Barrier to AI in Engineering

Despite 72% believing AI will be an ongoing trend, 59% of firms are still using manual planning and spreadsheets to manage resource allocation. AI tools generate meaningful value when they have real-time, structured data to work with. When that data lives in disconnected spreadsheets, informal processes, and project managers’ heads, the potential for AI to surface useful insights is significantly limited.

The challenge for most engineering firms isn’t awareness of AI. It’s building the data foundation and integrated workflows that allow AI to actually function as a useful business tool, rather than something that sits at the edge of the practice.

How Does Your Firm Compare?

The 2026 Engineering Industry Benchmark Report draws on responses from engineering practices across the globe to give the sector a clear picture of how firms are operating right now, covering opportunities and challenges spanning everything from profitability, staffing, technology and growth.  

For more insights, and to discover how your margins, utilisation and business development efforts compare to firms like yours, download the report here to see the full picture.  

About Total Synergy (Australia)

Total Synergy is an Australian software company based in North Sydney, NSW, helping architecture and engineering practices across Australia improve project visibility, resourcing, and profitability with project management and practice management software. Try Total Synergy for free today and discover how the platform can transform your firm.