Revizto Research Reveals Australian Architecture Engineering and Construction (AEC) Sector Leads On Digital Maturity But Faces Growing Data Governance And AI Challenges

Australia’s architecture, engineering and construction (AEC) sector is outperforming global peers on digital project delivery but now confronting a new set of challenges around data ownership, AI governance and the capacity to implement technology at scale, according to a global survey of more than 2,000 industry professionals.

The findings come from Revizto’s 2026 Digital Design and Construction Report, titled “Bridging the Gap,” which surveyed 2,006 AEC professionals across the USA, UK, Switzerland, Germany, France, Australia, Saudi Arabia and the UAE. The Australian sample included 300 respondents, of which 90 are CIOs.

Australia Tightening Cost Control

Australian AEC firms reported lower average project budget overruns than their global counterparts, with a mean overrun of 9.8 per cent compared with 11.6 per cent globally.

Some 19 per cent of Australian projects exceeded budgets by just zero to five per cent, compared with eight per cent globally, suggesting tighter project cost discipline across the local market.

The country also leads on model-based digital workflows. Some 29 per cent of Australian organisations reported mostly or fully model-based workflows, compared with 21.7 per cent globally. The report attributes this to broader industry digital maturity and collaborative delivery models that demand coordinated project execution.

Data Ownership Anxiety Runs High

Despite the strong performance on project delivery, Australian firms are notably more concerned than their global peers about data ownership and control.

Some 64.4 per cent of Australian AEC organisations reported being “very” or “extremely” concerned about data ownership when selecting technology vendors, nearly double the global average of 37.8 per cent.

Australian respondents were also far less likely to take a neutral stance on the issue, suggesting data governance is becoming a decisive factor in technology procurement decisions.

Jason Howden, Chief Innovation Officer at Revizto, commented: “Many organisations across the Australian AEC sector have already embraced digital tools to improve coordination and project outcomes. The challenge now is ensuring those technologies can scale across complex infrastructure and building projects while maintaining control of data, security and governance.”

“As projects become more collaborative and information-rich, ownership and visibility of project data is critical.”

AI Recognised But Governance Slowing Progress

Australian AEC organisations see clear value in AI for project delivery. Only four per cent of Australian respondents indicated AI lacks a clear use case, compared with 11 per cent globally.

However, 32 per cent cited regulatory uncertainty as the single biggest barrier preventing their organisation from gaining value from AI – the highest proportion of any country surveyed, compared with 24 per cent globally.

“The question is no longer whether AI can deliver value,” Howden noted. “Australia’s AEC industry is grappling with how to deploy it responsibly and meet tightening governance and regulation requirements. The focus is on making sure teams retain control of their data and decision-making processes while still benefiting from the productivity gains AI can deliver.”

Globally, the survey found regulatory concerns (24 per cent) and limited digital skills (23 per cent) are the two biggest barriers to AI value. Poor data foundations and lack of integrations combined represented 32 per cent of responses.

Software Costs Squeezing Firms

Australian AEC firms are feeling the financial pinch from escalating software and cloud licensing costs, with 72.2 per cent reporting price increases over the past 12 months, compared with 65.8 per cent globally.

The pressure is particularly acute for multidisciplinary engineering firms, which were the most likely to report double-digit cost increases.

The survey found CIOs are caught between competing pressures. Some 41 per cent plan to expand their technology stack over the next 12 to 18 months, while 39 per cent plan to consolidate. The single most common move is consolidating by up to 25 per cent, cited by 31 per cent of CIOs, signalling a push toward tighter and more focused tool stacks.

Technology Integration Remains The Top Global Challenge

Across all markets, technology integration and adoption remains the single biggest challenge for AEC businesses for the second consecutive year, cited by 22 per cent of respondents.

The report found the struggle is no longer about purchasing tools but connecting them. As technology stacks expand, fitting new solutions into existing workflows remains the primary friction point for nearly a quarter of all firms.

Project complexity and coordination surged to become a joint second-ranked issue at 17 per cent, up from fifth place in 2025 – a jump the report calls the defining story of 2026.

Ian Besford, Global Digital Delivery Leader at Mott MacDonald, observed: “The most successful projects I’ve been involved in have been those where, from day one, everyone has taken the time to fully understand the scope and requirements, the options and approach, and worked together to document not just the decisions but the rationale, too.”

Budget Overruns Are The Default

Globally, 92 per cent of respondents reported budget overruns of six per cent or more. The most common overrun band was six to 10 per cent, reported by 45 per cent of respondents, followed by the 11 to 20 per cent band at 42 per cent.

The report found rework is increasingly driven by internal process failures rather than external factors. Change orders, client changes and scope creep topped the list of rework drivers at 47 per cent. Design errors and incomplete plans followed at 42 per cent, with poor communication and coordination at 41 per cent.

Site conditions, traditionally blamed for rework, dropped from 53 per cent in 2025 to 41 per cent this year.

Time Is The Biggest Barrier To Adoption

For the second consecutive year, time – not cost – emerged as the biggest barrier to adopting new technology, cited by 32 per cent of respondents globally and 39 per cent of Australian respondents, the highest of any country surveyed.

Lack of policy or a clear mandate ranked second at 27 per cent, followed by resistance to change at 24 per cent. Cost was ranked fourth, cited by only 18 per cent of respondents, down from 21 per cent in 2025.

The report suggests teams are too overwhelmed by project demands to pause execution and learn complex new tools, and without clear top-down mandates, many firms are choosing to maintain the status quo.

Skills Gap Driving Workflow Changes

The industry is also responding to structural labour shortages by investing in efficiency rather than headcount. Simplifying tools and workflows was the top response at 47 per cent, followed by upskilling existing staff at 44 per cent, exploring AI tools at 42 per cent and using automation to reduce manual work at 40 per cent.

Hiring more digitally skilled staff ranked lowest at 36 per cent, suggesting firms have accepted they cannot hire their way out of the efficiency challenge.

In Australia specifically, 46 per cent of organisations are prioritising automation and 46 per cent are investing in upskilling and training, both slightly above the global average.

2D Drawings Still Dominate

Despite the rise of building information modelling, the industry still runs largely on 2D drawings. Some 60 per cent of firms globally remain primarily reliant on 2D drawings or a mix where 2D dominates, with only 22 per cent identifying as mostly or fully model-based.

Saudi Arabia and Australia lead globally on model-based usage. The report links this in Australia’s case to broader digital maturity and collaborative delivery models.

The continued reliance on 2D workflows directly correlates with the survey’s finding that design errors and poor communication are among the top drivers of rework. When stakeholders must mentally reconstruct complex 3D assets from flat drawings, the report notes, human error thrives.

Data Sovereignty Now A Boardroom Issue

Among CIOs specifically, 96 per cent reported being concerned about data ownership and control when selecting technology vendors, with 38 per cent describing themselves as “very” or “extremely” concerned.

Concern was strongest in Australia and Germany, reflecting growing anxiety around vendor lock-in and the long-term accessibility of project data in more tightly regulated markets.

The survey was conducted in January and February 2026 through independent research firm Censuswide. The sample spans architecture firms, engineering consultancies, general contractors and specialty subcontractors, with 80 per cent of respondents in leadership roles. Some 84 per cent of respondents report annual turnover above US$100 million.

Last Updated on April 13, 2026 by Nick Ross