AI-driven holographic plans overlay a construction site, illustrating workflow integration and cloud-connected data.
Palo Alto, CA, August 24, 2025
The Houzz State of AI in Construction and Design survey of more than 700 U.S. firms finds broad awareness, growing adoption and high expectations for AI across contracting and design workflows. Over a third of firms already use AI for administrative tasks, project management and content generation, reporting productivity gains and reduced manual work. Respondents highlighted gaps in training, trusted tools and data security as barriers to wider adoption, while larger firms show higher uptake. Market analysts raised targets for cloud, chip and data-platform vendors, and a cybersecurity vendor reported stronger AI-related recurring revenue and identity-focused priorities.
Key finding: A new industry survey shows widespread awareness of artificial intelligence in U.S. construction and design trades, with growing adoption and strong expectations that AI will reshape how firms work over the next five years. At the same time, earnings and analyst moves from major cloud, chip and security vendors underscore how investors and customers are positioning for an AI-driven era.
The inaugural 2025 U.S. State of AI in Construction and Design report from a Palo Alto, CA-based online platform polled more than 700 design and construction firms. The study describes industry professionals as having broad awareness, moderate adoption and high expectations for AI’s impact. More than a third of respondents (34%) report already using AI in their businesses. Nearly seven in 10 say they are generally familiar with AI, while less than a quarter say they are not very familiar and only 8% report no exposure at all. Two-thirds believe AI will transform the industry within five years.
Among users, the most common uses in construction are administrative tasks and project management, while designers most often tap AI for administrative and content-driven work. Nearly three-quarters of AI users say they are satisfied with the experience, and 58% report AI has had a moderate to significant impact on their workflows. Users also report saving an average of more than hours per week, with the report noting the numeric value was not provided in the source material.
The survey highlights persistent concerns: reliability and accuracy of AI outputs, data security and privacy risks, and a lack of adequate training or technical expertise. The authors flag a clear call among professionals for support, training and trusted tools and interpret higher adoption among firms with more than 10 employees as an indication that scale helps fund research and experimentation.
Analysts and banks adjusted ratings and targets for major cloud, chip and data firms this week, citing AI momentum. One research shop raised its price target on Microsoft to $675, pointing to sustained cloud and AI growth and a halo effect across Azure and enterprise products. The note highlighted multiple potential revenue synergies from infrastructure, data services and AI-enabled apps and said Azure remains a core driver.
Another firm flagged potential upside for Nvidia but cautioned near-term guidance may exclude direct China revenue because of licensing and policy uncertainty. That research house expects GPU supply and new Blackwell GPUs to continue ramping, with potential incremental revenues from China in the low billions if regulatory access is granted, and raised its Nvidia price target.
A different bank upgraded Snowflake to Buy and lifted its target to $240, citing stronger demand trends for data and AI services. Analysts there cited proprietary data and channel checks pointing to momentum in Snowflake’s core data warehouse and AI platforms, projecting product revenue above company guidance and noting growing use of the platform for AI workloads.
Security software vendor results and guidance drew investor attention. The company reported fourth-quarter adjusted earnings that topped expectations and revenue roughly in line with consensus. Fiscal 2026 guidance for EPS and revenue was lifted above prior Street forecasts, and several analysts upgraded the stock on the strength of recurring revenue growth, improving margins and rising software mix.
Analysts flagged a 32% plus gain in next-generation security ARR and robust RPO growth, with software now accounting for a larger share of product revenues. Platform deals and multi-product sales were frequent themes: the vendor reported many large platform deals and noted higher average ARR per platform customer. The company also highlighted growth in secure browser seats following its acquisition of a secure browser business, and an almost threefold increase in AI-related annual recurring revenue to roughly the mid-hundreds of millions.
Management reiterated plans to close an identity and privileged access vendor acquisition in the second half of the fiscal year and framed the deal as a way to expand identity capabilities and channel reach. The combined company is expected to pursue cross-selling of identity, SASE and extended detection and response, with management projecting strong free cash flow conversion for the merged business by fiscal 2028. Analysts praised the strategic logic but also noted integration risk and timing uncertainty as watch points.
The industry survey shows practical, immediate AI use cases in admin and project workflows, not just lofty design experiments. Firms that invest in training, secure tools and workflow-integrated solutions are likely to capture the strongest near-term gains. At the same time, recent moves across cloud, chip, data and security vendors suggest the vendor landscape is aligning behind AI infrastructure, data platforms and security stacks that address the specific risks of agentic and browser-delivered AI.
Buyers should watch three themes: integration of AI into familiar workflows, vendor consolidation in security and identity, and the balance between on-prem or cloud AI infrastructure and data governance. The survey’s clear call for trusted tools and training underscores the need for practical adoption strategies rather than one-off pilots.
The industry findings come from a survey of more than 700 U.S.-based design and construction firms conducted for the 2025 report. Company results and analyst commentary cited here come from public earnings, guidance and analyst notes published around the same reporting window. The web page carrying the industry report also displayed standard site elements such as cookie notices and developer credits in the page footer.
A: More than 700 U.S. design and construction firms participated, spanning small firms and larger businesses. The report notes higher adoption among firms with more than 10 employees.
A: About 34% of respondents reported already using AI in their businesses.
A: Construction professionals most often use AI for administrative tasks and project management. Designers commonly use AI for admin and content creation tasks.
A: Top concerns include reliability and accuracy of AI outputs, data security and privacy risks, and a lack of training or technical expertise.
A: Analysts adjusted ratings and price targets for cloud, chip and data firms based on AI demand. Security vendors reported strong subscription growth and positioned identity and secure-browser offerings as critical to protecting AI-driven workflows.
| Topic | Key points |
|---|---|
| Survey scope | Inaugural 2025 U.S. industry study; >700 firms; Palo Alto, CA-based platform sponsor |
| Awareness & adoption | ~70% familiar with AI; 34% using AI; 66% expect transformation in 5 years |
| Common uses | Admin, project management, content tasks; higher adoption in firms >10 employees |
| User benefits | Reported productivity gains, less manual effort, better organization, time savings |
| Concerns | Output accuracy, data security/privacy, lack of training/support |
| Market signals | Analyst upgrades and price-target increases across cloud, chip and data firms; security vendor upgrades after beat-and-raise quarter |
| Security & identity | Platformization, secure browsers and identity deals seen as strategic bets to protect AI workflows |
Springfield, August 24, 2025 News Summary City officials launched the next planning phase for a proposed…
Contra Costa County, California, August 24, 2025 News Summary The Contra Costa Water District is advancing…
Estelí, Nicaragua, August 24, 2025 News Summary Perdomo introduced the Legacy series, a 15‑SKU release comprised…
Bay Area, August 24, 2025 News Summary The Bay Area building industry is under pressure from…
West Palm Beach, Florida, August 23, 2025 News Summary Three major hospitality moves are reshaping West…
Marquette Township, August 23, 2025 News Summary At a special meeting the Marquette Township Board approved…