Builders FirstSource (BFS) has formed a strategic partnership with AI technology provider Digs aimed at creating new digital workflows and infrastructure for professional homebuilders and homeowners.

Announced Aug. 25, the partnership includes BFS serving as the sole lead investor in Digs’ $25.3 million Series A financing and entering a five-year commercial agreement with the company. The companies will collaborate on product development, platform integrations and expanded AI capabilities within BFS’ digital ecosystem.

Digs’ patented AI platform converts construction documents into a centralized source of project information, connecting plans, specifications, product selections, approvals, warranties, conversations and project history. The companies said their planned integrations will span estimating, procurement, construction and post-construction homeowner services.

Planned capabilities include AI chat and project collaboration tools, AI-powered diagramming and finish selections, digital homeowner experiences during construction and AI-supported warranty and aftercare. Homeowners would also receive a digital twin of their home containing information that can be used after move-in.

“Our customers are looking for seamless technology that helps them operate more efficiently and deliver a better homeowner experience,” BFS CEO Peter Jackson said. “By combining Builders FirstSource’s scale, deep customer relationships, product data and extensive digital ecosystem with Digs’ AI platform, we are advancing tools that can simplify workflows, improve productivity and create a more connected experience across the homebuilding lifecycle.”

BFS said it currently serves more than 140,000 customers and operates approximately 565 locations across 43 states.

The partnership follows a pair of recent acquisitions that expanded BFS’ value-added capabilities. In June, the distributor acquired Boise, ID-based Precision Design and Trim, which provides finish work for new home construction. On Aug. 3, BFS acquired Innovative Construction Group from PulteGroup, adding two Southeast manufacturing plants and expanding its turnkey framing capabilities across structural design, component production, delivery, installation and field supervision.

Those investments come amid a challenging housing market. BFS’ second-quarter sales fell 8.8% year-over-year to $3.86 billion, while adjusted EBITDA declined 34.9% to $329 million. The company lowered its 2026 sales outlook to $14 billion-$14.8 billion from $14.6 billion-$15.6 billion amid persistent housing affordability pressures and softer construction demand.

Meanwhile, BFS is preparing for a COO transition. Mike Hiller is set to succeed Steve Herron, who will retire Dec. 31. The company also appointed Coley O’Brien as Chief Human Resources Officer as part of the succession plan announced in May.