New Houzz survey tracks industry reaction to AI

PALO ALTO, Calif. — Houzz Inc., a platform for empowering construction and design industry professionals and their clients with all-in-one project management and design software, has released its first-ever 2025 U.S. Houzz State of AI in Construction and Design Report.

The report provides 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.

More than one-third of industry pros are already using AI in their businesses (34%), and they report saving an average of more than 3 hours per week, citing benefits like greater productivity, reduced manual effort and improved organization. Based on the weekly time saving reported by respondents, this savings translates to more than $108,000 in annual productivity gains per business.

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A much larger percentage of respondents, 66%, believe AI will transform the industry within the next five years, and nearly three in five professionals (59%) are familiar with AI tools designed especially for construction and design workflows.

“The next wave of transformation will be driven by AI solutions that integrate seamlessly into workflows for greater efficiency and accuracy,” said Alon Cohen, Houzz co-founder and CEO. “As the report shows, pros in our industry are approaching this era with openness and a strong desire to learn.”

The Houzz report shows that AI adoption is significantly higher among larger firms with more than 10 employees. For example, 31% of all design firms report using AI, and that number balloons to 50% among large firms.

Designers are tapping AI for administrative and content-driven tasks, while construction pros primarily use it for administrative tasks and project management. 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.

While some 71% of the respondents are satisfied with their AI experience, concerns persist about the reliability and accuracy of AI-generated outputs, data security and privacy risks, as well as a lack of adequate training or technical expertise.

For its report, Houzz surveyed 722 U.S. businesses offering construction and design services, as well as 76 specialty trade professionals including electricians, plumbers, HVAC specialists and painters. The survey was fielded May 9-28.