Survey Highlights Growing Adoption of AI in Construction and Design

News Summary

A recent report from Houzz Inc. reveals that 34% of construction and design professionals are implementing artificial intelligence (AI) in their businesses. The 2025 U.S. State of AI in Construction and Design Report emphasizes productivity gains, with users saving over three hours weekly, translating to $108,000 in annual benefits. However, challenges like lack of training and concerns over reliability and data privacy hinder broader AI use. With high awareness and satisfaction levels, the report indicates a transformative shift is expected in the industry due to AI advancements.

AI Adoption in Construction and Design Sees Significant Growth, According to New Report

In a recent report released on July 17, 2025, significant insights into the state of artificial intelligence (AI) adoption across the construction and design sectors have been revealed. The inaugural 2025 U.S. State of AI in Construction and Design Report, compiled by Houzz Inc., draws from a comprehensive national survey involving over 700 firms. The findings outline trends in early AI adoption, the perceived advantages, ongoing challenges, and expectations for AI’s long-term impact.

Currently, 34% of professionals in construction and design indicate that they are utilizing AI technologies as part of their business operations. This early usage reflects a growing trend towards digital transformation in an industry that has historically been slow to adopt new technologies. Those businesses integrating AI into their workflows estimate a remarkable savings of over three hours every week, which translates to about $108,000 in annual productivity gains per firm.

Key Benefits of AI Integration

The advantages of utilizing AI in construction and design appear significantly beneficial. Respondents reported improvements in several important areas, including:

• Reduced Manual Tasks: Automation of repetitive tasks allows professionals to focus on more strategic activities.
• Improved Organization: AI tools assist in better organizing project data and team collaboration.
• Increased Efficiency: With quicker data processing and seamless integration, projects can move forward more rapidly.

Alon Cohen, co-founder and CEO of Houzz, noted that the acceleration of AI innovation is fostering competitive advantages for those who embrace these technologies. This is evidenced by larger firms—defined as those with at least 10 employees—reporting notably higher rates of AI adoption, which may highlight the resources and infrastructure necessary to implement such technologies effectively.

Awareness and Expectations Around AI

Overall awareness concerning AI remains remarkably high among industry professionals. A striking 69% of respondents expressed familiarity with AI technologies. Only 8% indicated they had no prior exposure to AI, while a robust 59% reported being acquainted with specific AI tools relevant to their work in construction and design. Furthermore, two-thirds of the surveyed professionals—66%—expect AI to create significant transformations in the industry within the next five years.

Among the firms already leveraging AI, 71% expressed satisfaction with their experiences, and over half—58%—noted moderate to significant improvements in their workflows attributed to AI technologies. These findings emphasize the positive impact AI can have in transforming everyday operations in construction and design.

Challenges Facing Broader Adoption

94% of designers and 92% of contractors identifying as self-taught in AI tools. Concerns about reliability, accuracy, data privacy, and insufficient technical training continue to hinder broader AI usage. Addressing these concerns is essential for enhancing adoption rates across the industry.

Opportunities exist for integrated AI solutions that align with existing tools and processes, which could help businesses overcome these challenges. Houzz Pro, a project management and design platform developed by Houzz, offers AI-powered features designed to streamline various operations such as:

• Estimating project costs effectively
• Takeoffs to ensure accurate purchasing
• Messaging to facilitate communication
• Visualization tools for better planning and design

Ultimately, the estimated annual productivity values noted in the report are derived from self-reported time savings and average revenues among the surveyed firms. For those looking to dive deeper into the data, the complete report is available for download at the Houzz website. This report highlights the significant impact AI is having in the construction and design sectors, as more firms begin to recognize its potential for transforming traditional workflows.

Houzz serves a vast community of over 3 million construction and design professionals, alongside 70 million homeowners globally, promoting cloud-based, AI-driven project management software to elevate productivity in construction and design workflows.

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Additional Resources

• Furninfo: Furniture Industry News
• Wikipedia: Artificial Intelligence
• Fast Company: The ROI of AI in Architectural Design
• Google Search: AI in Construction
• BDC Network: How AI Enhances Design