AEC companies are rapidly adopting artificial intelligence, with many moving from testing the technology to using it for everyday business tasks, according to the U.S. State of AI in Construction and Design Report by Houzz.

The report found that the percentage of businesses using AI frequently for business tasks jumped 7 points to 41% over the past year, with meaningful productivity gains and rising expectations for the technology’s impact.

More than half of responding firms to a Houzz survey reported saving three or more hours per week (52%), and nearly 1 in 5 (18%) save eight or more hours. On average, that translates to an estimated $134,000 in annual productivity gains per firm.

Key findings for the construction sector include:

• AI adoption among construction firms jumped 20 percentage points to 52% in the past year, the sharpest gain of any segment in the report
• Adoption runs deep once it takes hold: 80% of construction firms that use AI do so daily
• AI now touches nearly every function of the business, led by sales and marketing (64%), planning and design (61%), and project and client management (59%)

Nearly two in five design firms now use AI (39%), up 8% from 2025, with planning and design overtaking administrative work as the sector’s leading AI application (doubling to 68% from 34% in 2025).

Designers’ most common use for AI is for preparing pre-project visuals, with 82% of firms using the technology to develop and refine a concept before work begins.

Design firms using AI save an average of 3.6 hours a week, translating into an estimated $80,000 in annual productivity gains per firm. Satisfaction with AI among design firms has climbed sharply, to 84% from 70% a year ago.