Houzz survey finds strong AI interest across construction and design

Houzz 2025 AI in Construction & Design Report Signals Growing Adoption and Training Needs Amid Broad AI Awareness

A new inaugural survey out of Palo Alto, CA, tracks how U.S. design and construction firms are responding to the evolving AI landscape. The broad awareness, moderate adoption and high expectations for AI’s impact are coupled with a clear demand for support, training and trusted tools, highlighting an industry poised for transformation but still seeking accessible guidance. The 2025 U.S. Houzz State of AI in Construction and Design Report draws on responses from more than 700 design and construction firms, offering a detailed view of how the sector is reacting to rapid AI shifts.

The data show that more than a third (34%) of industry professionals are already using AI in their businesses. Those AI users report benefits such as greater productivity, less manual effort and better organization, with two-thirds of respondents, or 66%, believing AI will transform the industry within the next five years. Awareness of AI is widespread, with nearly 7 in 10 professionals saying they know about AI, and less than a quarter not feeling familiar. Only 8% report no exposure to AI at all.

The report notes that nearly 3 in 5 professionals are familiar with AI tools designed for construction and design workflows. The Houzz platform, rooted in Palo Alto, is described as a Palo Alto, CA-based online platform for construction and design. In framing the AI wave, Houzz emphasizes that AI adoption is significantly higher among larger firms with more than 10 employees, suggesting that scale enables more research, experimentation and adoption of new tools and approaches.

In practice, construction professionals lean on AI most for administrative tasks and project management, while designers lean into admin and content-driven tasks. Among AI users, nearly three-quarters report satisfaction with their AI experiences, and 58% say AI has had a moderate to significant impact on their workflow. At the same time, concerns persist about the reliability and accuracy of AI outputs, data security and privacy risks, and a lack of adequate training or technical expertise. The report highlights a gap in training and support and points to an opportunity for AI solutions that integrate into familiar workflows and provide accessible ways for pros to adopt emerging technologies.

Beyond the survey findings, the Houzz report underscores a call for practical tools that fit existing workflows, reflecting an industry that wants AI to enhance efficiency while minimizing disruption. The study’s implications point to vendors and platform providers delivering integrated, user-friendly AI features that align with real-world design and construction processes.

Looking at the broader market context, the AI conversation in construction sits alongside major technology moves in the broader software and security space. In the AI cloud and platform arena, several large firms have signaled continued momentum, with cloud growth and AI use cases expanding across infrastructure, data and application layers. Industry watchers expect continued appetite for AI-enabled capabilities that bridge design, project management and operations, as firms seek competitive advantages through faster workflows and more accurate outcomes.

Market moves: Microsoft, Nvidia and Snowflake

In parallel to the Houzz findings, analysts highlighted several notable moves in AI-powered technology stacks. A major tier-1 bank research note upgraded the price target on Microsoft, underscoring Azure’s role as a growth driver and the broader AI ecosystem’s impact on revenue, profit and cash flow trajectories. The raised target reflects expectations of sustained cloud growth and AI demand, with emphasis on Azure’s role as a catalyst for a wide range of Microsoft products and services.

In the semiconductors and data-center accelerator space, Nvidia faces questions around near-term guidance tied to regional demand, particularly in China, even as supply and backlog trends point to strong underlying momentum in GPU demand to support AI workloads. Industry analysts note potential upside from new Blackwell-era products and expanding rack deployments, while acknowledging policy and regulatory considerations that could influence near-term results.

Snowflake received a rating upgrade from a major bank, driven by stronger recurring demand for data warehousing, AI workloads and developer platforms. The firm’s revenue mix and AI-focused product cadence support expectations for continued expansion in the data-technology stack, with analysts pointing to a large addressable market for AI software and data services.

Palo Alto Networks and the CyberArk deal: security in an AI era

On the security front, Palo Alto Networks reported solid fourth-quarter results and issued a favorable long-term outlook, with revenue near expected levels and a strong position in next-generation security ARR. The results featured robust expansion in cloud and platform-based offerings, supported by growth in Cortex and Prisma Cloud lines. In parallel, the company signaled progress toward combining with CyberArk to push deeper into identity and privileged access management as AI usage grows. The management team outlined a path to synergies that would amplify the value of a larger, integrated security platform across a broad customer base.

Industry observers note that secure browsers and agent-centric AI delivery are becoming a theme in the security landscape, with the enterprise browser market framed as a potential operating system for AI-enabled workflows. Analysts emphasized that software-driven security and platformization are reshaping how customers buy and deploy security tools, with enterprise-scale implications for annual recurring revenue and cross-sell opportunities.

The broader market commentary touched on peers in software and security, where investors weigh valuation, margins and the potential for AI to alter the competitive dynamics. Several firms highlighted the importance of a diversified software portfolio, a strong channel ecosystem and a strategic approach to data security as AI adoption expands across enterprises.

Key takeaways for construction and design professionals

The Houzz findings point to a moment where AI is both a practical helper and a strategic question for firms. With a substantial portion already using AI and many more expecting transformation in coming years, the emphasis moves toward practical training, trusted tooling and seamless workflow integration. As firms evaluate software, data security and the accuracy of AI outputs remain central considerations, and the appetite for education and hands-on support is clear.

The convergence of construction/design AI adoption with high-profile technology moves underscores a broader shift toward AI-enabled efficiency and risk-managed innovation. Firms that align AI tools with established workflows and invest in training are likely to outpace peers as the industry enters a period of accelerated digital transformation.