Houzz survey finds strong AI interest across construction and design

Palo Alto, CA, August 24, 2025

News Summary

The Houzz State of AI in Construction and Design survey of more than 700 U.S. firms finds broad awareness, growing adoption and high expectations for AI across contracting and design workflows. Over a third of firms already use AI for administrative tasks, project management and content generation, reporting productivity gains and reduced manual work. Respondents highlighted gaps in training, trusted tools and data security as barriers to wider adoption, while larger firms show higher uptake. Market analysts raised targets for cloud, chip and data-platform vendors, and a cybersecurity vendor reported stronger AI-related recurring revenue and identity-focused priorities.

AI Adoption Heats Up in U.S. Design and Construction; Security and AI Infrastructure Firms See Market Moves

New research from a Palo Alto, CA-based platform shows U.S. design and construction professionals report broad awareness, moderate adoption and high expectations for artificial intelligence. The inaugural 2025 U.S. State of AI in Construction and Design Report surveyed more than 700 firms and found notable early use, strong optimism and clear gaps in training and trusted tools. At the same time, large cybersecurity and cloud players posted earnings, guidance and analyst moves that signal investor and customer focus on security and data platforms as AI use grows.

Top findings from the industry survey

The report shows more than a third (34%) of industry professionals are already using AI in their businesses. AI users in the survey report saving an average of more than hours per week. Reported benefits include greater productivity, less manual effort and better organization. Nearly three in five professionals are familiar with AI tools made for design and construction workflows, and almost 7 in 10 say they know about AI in general. Two-thirds (66%) believe AI will transform the industry within five years.

At the same time, under a quarter of respondents say they are not very familiar with AI, and 8% report no exposure at all. The report highlights a clear call from pros for support, training and trusted tools, and it emphasizes that larger firms with more than 10 employees are adopting AI at significantly higher rates — a sign that scale helps firms research, experiment and fund new tool adoption.

How pros are using AI now

Construction teams most frequently apply AI to administrative tasks and project management, while designers rely heavily on AI for administrative work and content-driven tasks. Satisfaction among AI users is relatively high: nearly three-quarters say they are satisfied with their experience, and 58% report a moderate to significant impact on workflow. Top concerns include the reliability and accuracy of AI outputs, data security and privacy risks, and a lack of training or technical expertise.

Security and platform firms respond to the AI shift

In parallel with the survey, a leading cybersecurity vendor reported stronger-than-expected fourth-quarter results and raised its outlook, citing accelerating software mix, platform deals and growing AI-related security revenue. The company posted EPS ahead of expectations and forecast fiscal-year revenue and earnings above prior consensus. Analysts reacted by upgrading coverage and keeping ambitious price targets, noting that platformization, platform ARR growth and large multiyear deals are reshaping how enterprises buy security in the AI era.

The vendor emphasized a growing role for secure browsers, agentic AI controls and identity management. Management outlined plans to close a deal to acquire an identity specialist in the second half of the fiscal year, seeing identity as a critical area as AI agents proliferate; the combined business is expected to deliver strong adjusted free cash flow by fiscal 2028 and to expand cross-selling into a much larger global customer base.

Cloud and chip sector moves tied to AI demand

Market analysts also adjusted views on major cloud and chip suppliers. One large bank raised a price target on a major cloud and software company, citing sustained strength in cloud and AI growth, Azure and commercial bookings across infrastructure, data and app businesses. Analysts pointed to revenue synergies across data platforms, copilot-style products and security offerings that create a growth-enhancing halo.

Chip-focused coverage noted strong near-term demand but flagged potential China-related uncertainty for second-half guidance. Forecasts suggested incremental billions in potential revenue tied to China access and shipment timing, while the chip vendor moves forward on a new chip ramp and improved rack manufacturing yields. Another major cloud-data platform saw an upgrade and a higher target from an investment bank, which cited stronger demand trends for data services, shorter sales cycles for AI projects and rising customer budgets for AI workloads.

What this means for design and construction firms

The combined signals—survey results showing appetite and concern, security firms expanding products and identities, and cloud and chip companies reporting AI-driven momentum—point to several practical takeaways for contractors, architects and designers:

• Prioritize training and change management: survey respondents identified a gap in accessible training and workflow-integrated tools.
• Start small on high-impact admin use cases: administrative and project management tasks are low-risk entry points with measurable time savings.
• Plan for security and identity controls: as AI agents and browser-based tools spread, identity, secure browsing and endpoint controls will become central.
• Watch vendor consolidation and platform offers: security and cloud vendors are bundling capabilities that can simplify procurement but require evaluation of lock-in and integration costs.

Risks and gaps to monitor

Firms should monitor the accuracy and reliability of AI outputs, protect project and client data, and build basic technical skills among staff. Larger firms have shown faster adoption, suggesting smaller shops may need partnerships, bundled tools or channel partners to close the gap.

Bottom line

The Houzz study frames AI as an emerging operational tool with clear upside and practical limits: many pros are ready to adopt but want vetted tools, training and security assurances. At the same time, public market moves and corporate results highlight a widening market for data platforms, AI infrastructure and security services that construction and design firms will need to consider as they digitize projects and workflows.

FAQ

Key Features at a Glance

Topic	Key Points
Survey Scope	Inaugural 2025 U.S. survey of more than 700 design and construction firms, based in Palo Alto, CA platform
Adoption	34% using AI; nearly 7 in 10 aware; 66% expect transformation within five years
Common Use Cases	Administrative tasks, project management, content-driven design tasks
Main Concerns	Accuracy, data security/privacy, lack of training and technical expertise
Market Signals	Security vendors raising guidance, analyst upgrades for cloud/data firms, chip supply ramps with China-related risk caveats
Actionable Advice	Focus on training, secure tools, low-risk admin use cases, and evaluate platform offers for integration and scale

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Additional Resources

• Investing.com: 5 Big Analyst AI Moves
• Wikipedia: Artificial intelligence
• CRN: What Palo Alto Networks’ Q4 Says About the Security Market
• Google Search: Palo Alto Networks Q4 agentic AI
• Reuters: Palo Alto forecasts signal AI boost (Aug 18, 2025)
• Google Scholar: Palo Alto Networks AI cybersecurity
• Forbes: Palo Alto Networks earnings preview (Aug 18, 2025)
• Encyclopedia Britannica: Palo Alto Networks
• AInvest: Palo Alto Networks pioneering AI-driven cybersecurity
• Google News: Palo Alto Networks AI