Deltek launches 7th Annual Clarity Report

Deltek has published its seventh annual global Clarity report, a comprehensive industry study of the Architecture, Engineering and Consulting sectors. The first of two Clarity AEC reports, focuses on survey results from 375 strategic decision-makers working in AEC firms across Germany, the UK, and Australia.

The professional services sector is navigating increased complexity, economic pressures, and technological disruption. With a focus on embedding AI, strengthening cybersecurity, and transforming business models for sustainable growth.

At nearly fifty pages, the report provides a complex overview of what is happening within the AEC industries. It is divided into four sections: Opportunities & Challenges, Technology Trends, Project Management, and Profitability & Performance Metrics. With a conclusion that offers an analysis and suggestions based on the findings on how AEC firms should plan for the rest of 2026.

Each section begins with a summary and key findings before diving into an analysis of the survey, with data visualisations and data points to strengthen the arguments. There are also several quotes from Deltek customers and industry experts throughout the report. Thus, adding another level of validity and depth.

In the Foreword, Neil Davidson, Group Vice President, Professional Services, Deltek, commented, “For the past seven years, we have surveyed industry leaders to understand how firms are responding to this shift, and what separates ambition from execution.

“This year’s findings point to an industry that is becoming more deliberate, strengthening control, sharpening investment decisions, and placing greater emphasis on converting innovation into measurable business outcomes.”

Opportunities and Challenges: Adapting for Advantage

The report opens by acknowledging the persistent uncertainty facing AEC firms. Global political instability, inflation, and cybersecurity risks top the list of concerns. With 55% of respondents extremely or very worried about political uncertainty (55%), inflation (54%), cybersecurity (53%), and recession (51%). The UK respondents were most concerned, but Australia is better insulated from global political uncertainty, presumably because of its distance.

Yet, the real story is not the presence of these pressures, but how firms are responding. Rather than retreating, industry leaders are embracing a new baseline—one where adaptability, operational discipline, and strategic investment are essential. AI is seen as critical to that success (91%). In professional services firms, 27% are already investing in new technologies, and 25% are operationalising or optimising AI. In A&E firms, those numbers are similar.

A third of professional services firms are undergoing or planning major business model transformations within the next three years, 59% are exploring changes to their business model.

The drive to adapt is fuelled by the recognition that traditional approaches may not sustain competitiveness in a market reshaped by AI, automation, and shifting client demands. Firms that modernise systems, invest in digital tools, and build future-ready talent. Those are pulling ahead in both profitability and operational performance.

Despite the rise of AI, talent remains a critical lever for growth. 42% increased their workforce in 2025 and 63% expect to increase further in 2026. Possibly due to AI Adoption, though growth is more cautious in the UK. AI is also having an impact on AI literacy, the most needed skill within firms (44%). Talent development is also seen as a critical level for staff retention.

Technology Trends: From Experimentation to Integration

Technology, especially AI and cybersecurity, is a top priority for AEC firms. Where AI is a vehicle for transformation, investment in cybersecurity is about risk mitigation, with 66% of firms targeted in the last three years.

Despite all regions being impacted by cyber attacks (UK (69%), Australia (68%), and Germany (59%), the UK remains the most concerned about risks (64%). Australia (42%) and Germany (36%) are also concerned or very concerned. The authors cite technology adoption as a factor for this difference, but the likelihood is more complex.

Cyberattacks do have an impact, with financial losses (45%) and customer attrition (38%) among the highest. But no numerical values were provided for this. Numerous security reports do cite mouth-watering financial penalties, but these third-party references are not used in the report. For example, the IBM Cost of a Data Breach Report 2025 notes that the global average cost of a data breach is $4.4 million.

At the heart of industry transformation is AI

The conversation has shifted from whether to adopt AI to how quickly and effectively it can be embedded across the project lifecycle. An overwhelming 91% of firms see AI as critical to future success, and 68% plan to increase AI investment in 2026. AI now powers planning, forecasting, resourcing, and reporting, delivering measurable productivity and profitability gains.

Digital transformation is accelerating, with nearly half of firms expecting it to become a primary executive-level priority within three years. The UK (54%) leads in digital maturity, but Germany (36%) and Australia (30%) are catching up. Each market reflecting unique pressures and priorities.

However, the industry variance is more interesting with Architecture (49%) and Engineering (56%) aiming for advanced digital transformation within 3 years, while consulting firms lag at 34%.

The authors noted, “This divergence reflects pressures specific to company type: A&E firms see digital maturity as essential for managing regulated workflows, reducing rework, and improving cost/schedule certainty, while consulting firms view it as critical for speed, insight generation, and client value.”

Project Management: Integration and Intelligence

Project management is undergoing a structural shift, with AI and automation moving from experimentation to full-scale integration. The adoption of AI is the top project management challenge for the next three years, cited by 38% of firms. Only 22% have fully integrated end-to-end project management systems, highlighting gaps in cost, schedule, and information flow.

However, with 53% mostly integrated and no comparison with previous years to highlight trends, it is difficult to know whether there has been progress.

Effective project management now depends on integrated data, disciplined KPIs, and next-generation skills. Firms with mature digital practices and integrated systems report higher confidence in tracking key metrics like budget, profitability, and schedule compared to 2024.

Interestingly, the top three skills required over the next three years are project management (31%), data analysis (31%), and automation literacy (29%). This is considerably different from a McKinsey report that noted the top five skills as (1) analytical thinking, (2) resilience, flexibility, and agility, leadership and social influence, (4) creative thinking, and (5) motivation and self-awareness. Most of these are, it is unclear whether respondents had a multiple choice option that included these and they chose to ignore, they might be worth including in next year’s survey.

Other challenges remain: the complexity of projects (27%), reskilling/upskilling staff (26%), competing priorities (25%), and increasing client expectations (22%). The rise of AI adoption as a challenge has been meteoric; will it disappear as quickly?

For project delivery, client requirements changes (35%) and project delays (32%) are common. With little qualitative element in this survey, there is little depth to what this is, why it happens, or how to resolve it.

Where AI may make a difference is in managing project information, where administrative workload (34%) was cited as the top challenge.

Profitability and Performance: Control and Resilience

After years of digital acceleration, 2026 marks a pivot toward control, profitability, and resilience. Firms expect stronger profits: 78% anticipate increases, and a quarter expect significant growth. The main drivers are smarter use of technology, tighter cost control, and improved KPI discipline.

AI implementation is expected to be the single biggest internal driver of profitability, especially for consulting firms. Integrated systems and automation are also key to reducing manual effort, lowering delivery costs, and improving consistency across projects.

However, 19% of firms indicate that economic conditions will be a strong driver of profitability in 2026. Other factors vary by region, with German firms noting that the regulatory environment will affect them.

Enterprise Times: What does this mean?

The report concludes with a call to action: firms must embed intelligence not only into project lifecycles but also into business operations and processes. Prioritising AI, automation, and improved project delivery is now essential for efficiency, resilience, and margin protection. Strengthening cyber readiness, reinforcing financial discipline, and investing in people—particularly in AI literacy and project management—are foundational for future success.

The report reads well. But there are times when it might have included trends from previous years and also deeper insight into some of the findings. A few qualitative interviews, or even industry experts answering a few more questions, might have delivered an even stronger report.

In a landscape defined by complexity and rapid change, the firms that move fastest with control, clarity, and intent will thrive. The 2026 Clarity Report stands as both a benchmark and a roadmap for AEC firms determined to turn ambition into measurable performance and sustainable growth.

The post Deltek launches 7th Annual Clarity Report appeared first on Enterprise Times.