News

CZECH REAL ESTATE AND CONSTRUCTION SECTOR: AI ADOPTION REACHES AROUND 27%

Drees & Sommer, a global consulting company providing a single source of consultation and implementation services for the real estate industry and infrastructure, conducted a regional market survey 1 in the Czech Republic, Poland, and Hungary, and now presents its key findings. The study examines major digitalization trends with a focus on the use of artificial intelligence (AI) among workers across various employment positions, including independent business owners in the real estate and construction industries. In the Czech Republic, just around 27% of workers in real estate use AI, with 54% of them using it on a weekly basis. Conversely, 60% of people working in real estate and construction across all three markets expressed a strong desire to learn how to use AI in their workplace, indicating a high motivation to develop digital skills within this sector.

"Compared to the broader CEE region, the Czech Republic is an average user of artificial intelligence in the construction sector, with a lower frequency of its use at work. However, nothing should prevent us from improving, and according to the survey, we have a high motivation to further develop in this area. This trend is also supported by other findings, such as the fact that only 10% of Czech respondents in this sector do not trust AI, and approximately only 5% had negative experiences with AI," commented Zdeněk Kovář, Managing Director of Drees & Sommer Czech Republic

Barriers to AI adoption: insufficient overview of available tools, lack of training and time

Nearly 70% of Czech workers reported not using AI for their work, leaving only around a quarter actively using AI, mostly on a weekly basis (54%) and 20% on a monthly basis. The most active users are those under 30 years old (42%) and middle management. Poland fares slightly better, with almost 30% of workers using AI, including a significant share of daily users (38%). Hungary lags behind with 22% of active AI users.

Czech workers cited the main barriers to AI adoption as an insufficient overview of available tools and solutions suitable for their work and company (37%), followed by inadequate training provided by the company and lack of time to learn (both 15%). Additionally, nearly 10% do not trust AI. In Poland and Hungary, distrust in AI is higher (17% and 15%, respectively). Positively, only 6% of workers across all three countries stated they do not understand AI, and only 4% reported poor experiences with it.

Current and future AI applications: from data collection to enhanced automation, improved planning, and greater energy efficiency 

Czech real estate workers primarily use AI for data collection (37%), automating processes (30%), and document management and planning (24%). Other uses include improving data analysis (20%), intelligent space design (12%), valuation and finance, and developing new products (both 10%), and generative design in BIM models (7%). In Poland, AI is most used for reporting (35%) and site analysis (23%). Hungary leads in data collection, with over 50% of workers using AI for this purpose.

Looking ahead, Czech workers, given the right support, wish to use AI mainly in planning (33%), data collection, automation of processes, and reducing operational costs (all 26%). Other future applications include valuation and finance (14%), energy efficiency (12%), generative design in BIM models (11%), and building administration (8%).

The Drees & Sommer Innovation Center has successfully established an AI strategy with several different AI taskforces and AI stakeholders to assist companies worldwide, including those in the CEE region, with AI applications.  This process begins with an AI Readiness Assessment to evaluate the AI maturity level of a company, and aims to accelerate their future development. “Internally, we run regular companywide Prompting Trainings, AI Learning Nuggets, AI Ideathons or our latest development is Dreso.AI – a platform that integrates different AI agents and AI assistants,” explained Hanna Huber, Leader of Innovation Management at Drees & Sommer. 

Czech workers are not well informed about AI promotion activities within their company 

One-third of Czech real estate workers are not well informed about their company’s AI activities, and over 30% stated that their company does not promote AI. The most common method of promoting AI innovation in Czech companies is through training (11%), followed by establishing incentive systems for innovative ideas and projects, and cooperation with external research institutions and start-ups (both 6%). In Poland, companies more frequently participate in industry-specific events (14%) and cooperate with start-ups (11%). In Hungary, workers receive better training support (15%) and are more internally incentivized for innovative projects (13%).

Besides AI, Czechs frequently use Internet of Things, cloud computing and document management software 

In total 43% of respondents across all three markets use other digital tools alongside AI. In the Czech Republic, among most used digital tools after AI are the Internet of Things, cloud computing and document management software (all around 8%). In Hungary, cloud computing is used by almost 30% of workers, while in Poland, document management software leads with 16%.

“With the rise of AI it is even more obvious, that the magic happens at the intersection between different technologies. But not only the convergence of the technologies, but also the enhancement in development speed – each technology fruits the others growth,” added Hanna Huber.   

Czechs are least positive about the level of digitalization in real estate and construction   

In the survey, Czechs are the most critical of the level of digitalization in the real estate and construction sectors. This assessment focuses on the actual application of AI and other technologies in companies, rather than directly on the digitalization of construction management. Approximately 27% of Czech respondents consider the level of digitalization to be poor, and 5% rate it as critical. On the other hand, 30% rate it as good, 25% as sufficient, and only 10% as very good. In Poland, 56% think the level of digitalization is good or very good, and 26% sufficient, with only 13% seeing it as poor. In Hungary, over 46% think the level of digitalization is good or very good, and 26% sufficient, with 20% seeing it as poor.

Digitalization: the biggest challenge is the lack of digital skills among employees, the greatest opportunity lies in overall increased efficiency

The biggest challenges across all three markets include a lack of digital skills among employees (44%), insufficient investment in digital tools, systems, and processes (35%), lack of awareness of the benefits and opportunities of digitization (34%), data security and protection (30%), and lack of leadership from company management to promote digitization (21%).

The biggest opportunities of digitization, as seen by Czechs, include increased efficiency and reduced operational costs (62%), process optimization (50%), greater service quality (36%), increased transparency through digital documents, and enhanced employer attractiveness for young professionals (both 22%). In Poland and Hungary, the future opportunities are viewed similarly, with both markets emphasizing greater service quality and increased transparency.

1) The market research was conducted by agency STEM/MARK in August and September 2024 in the Czech Republic, Poland, and Hungary. The representative sample included 313 respondents from each market (939 in total) actively working in the real estate and construction sector across various positions and job statuses, reflecting the percentage representation of these workers in the labor market.