The once skeptical construction industry is growing fond of AI. With new found efficiency, design benefits, and cost savings, AI is becoming widespread in the industry.
According to an inaugural 2025 U.S. Houzz State of AI in Construction and Design Report, 7 in 10 construction and design pros know about AI (69%) and two-thirds believe AI will transform the industry within the next five years (66%).
“AI innovation in construction and design is accelerating, creating a competitive advantage for pros who adopt it. The next wave of transformation will be driven by AI solutions that integrate seamlessly into workflows for greater efficiency and accuracy,” says Alon Cohen, Houzz co-founder and CEO.
AI adoption is significantly higher among larger firms with more than 10 employees, Houzz says. In the construction industry, nearly one-third of businesses report using AI (32%) and usage doubles among large firms (64%). Similarly, 31% of all design firms report using AI, reaching 50% among large firms.
Pros report saving an average of over three hours per week with benefits like greater productivity and improved organization. These savings translate to more than $108,000 in annual productivity gains per business (assuming a 40-hour work week) among construction and design pros. Construction pros saw on average $170,000 in annual productivity gains and designers an average of $74,400.
The report also found that:
- 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.
- While satisfaction with AI tools is high, the report found a gap in training as the 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).
For construction professionals, administrative tasks and project management are most often being handled using AI while designers are using AI for admin and content-driven activities.
The breakdown of these tasks include:
Project and client management: (33% across all pros, 42% construction, 14% design) features for estimating, invoicing, and task tracking.
Administrative work: (62% across all pros, 47% construction, 70% design), tasks such as AI assisted notetaking, 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.
