The construction industry constantly explores innovative solutions to improve safety and productivity and to cut costs and time. Augmented reality (AR) is one of the emerging technologies that can strongly impact the construction industry. This paper presents the preliminary results of a study focusing on the excavation industry’s needs, expectations, and challenges regarding AR applications. Sixteen (16) professionals from the New Zealand excavation industry were interviewed to share their perspectives. The interview was structured into several sections: demographics, industrial experience, and common practices for preventing underground utility damage during excavation, ranking identified limitations and risks associated with excavation works, and providing recommendations to mitigate them. During the interview, participants were exposed to AR prototypes. Following the hands-on experience with the prototypes, the interviews concluded with discussions on the industry needs and expectations associated with their AR experience. This research suggests that the primary risks during excavation are injuries to workers and the potential risk of damage to buried utilities. Moreover, there was a high expectation of accuracy from an AR system for future development.