Houzz Inc., a leading platform for construction and design, today released the first-ever 2025 U.S. Houzz State of AI in Construction and Design Report, providing a detailed look into how the industry is reacting to the rapidly evolving AI landscape. Based on a survey of more than 700 construction and design professionals, the report reveals broad awareness, moderate adoption and high expectations for AI’s transformative impact — alongside a clear call for support, training and trusted tools.
More than a third of industry pros are already using AI in their businesses (34%), and they report saving an average of more than three hours per week, citing benefits like greater productivity, reduced manual effort and improved organization. This savings translates to more than $108,000 in annual productivity gains per business*.
Strikingly, two-thirds of respondents believe AI will transform the industry within the next five years (66%). Awareness of AI is already widespread across the industry, with nearly 7 in 10 pros saying that they know about AI (69%). Less than a quarter are not very familiar with AI (23%) and only 8% report no exposure at all. Notably, nearly 3 in 5 pros are familiar with AI tools specifically designed for construction and design workflows (59%).
“AI innovation in construction and design is accelerating, creating a competitive advantage for pros who adopt it,” said Alon Cohen, Houzz co-founder and CEO. “The next wave of transformation will be driven by AI solutions that integrate seamlessly into workflows for greater efficiency and accuracy.
“As the report shows, pros in our industry are approaching this era with openness and a strong desire to learn. The future is about adopting AI to build stronger, more successful businesses. At Houzz, this vision has guided our work: embedding powerful AI capabilities directly into the software pros already use, to boost productivity across every phase of a project and client relationship.”
AI adoption is significantly higher among larger firms with more than 10 employees, suggesting that greater scale allows for the resources needed to research, experiment and drive adoption of new tools and approaches. In the construction industry, nearly one-third of businesses report using AI (32%), but usage doubles among large firms (64%). Similarly, 31% of all design firms report using AI, growing to 50% among large firms.
Construction pros lean on AI most frequently for administrative tasks and project management, while designers are tapping it for admin and content-driven tasks. Specific activity includes:
- Administrative work (62% across all pros, 47% construction, 70% design), such as AI assisted note-taking, formatting and document editing.
- Sales and marketing (55% across all pros, 37% construction, 59% design) activities, particularly related to social media content, advertising and lead management.
- Planning and design (42% across all pros, 32% construction, 34% design) tools to visualize projects, generate floorplans and support takeoffs.
- Project and client management (33% across all pros, 42% construction, 14% design) features for estimating, invoicing and task tracking.
Nearly three-quarters of AI users in design and construction firms are satisfied with their experience (71%), and 58% say AI has had a moderate to significant impact on their workflow. However, concerns persist, including the reliability and accuracy of AI-generated outputs, data security and privacy risks, and a lack of adequate training or technical expertise.
While satisfaction with AI tools is high, the report highlights a gap in training and support. The vast majority of industry pros using AI report having no formal instruction in how to apply it to their work (94% of designers and 92% of contractors).
This points to an opportunity for solutions that integrate AI into familiar workflows and provide accessible ways for construction and design pros to incorporate emerging technologies. Houzz Pro, for example, includes AI-powered features for estimates, takeoffs, messaging and visualization within its project management and design tools, aiming to support professionals in adopting AI as part of their day-to-day work.
* The estimated annual productivity value is based on self-reported weekly time savings from AI-use and average annual revenue among construction and design businesses. The calculation assumes a 40-hour workweek and that time saved translates into productivity gains.
