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.
Houzz report finds rapid interest in AI among U.S. design and construction pros as software and security plays move
Key takeaway: A new industry survey shows strong interest and growing use of AI in construction and design, and the market is responding with price-target lifts and product bets from major cloud, chip and data companies. Security vendors are also accelerating plans to protect growing AI workloads and identities.
Top lines from the Houzz study
Published from Palo Alto, CA, the inaugural 2025 U.S. Houzz State of AI in Construction and Design Report draws on a survey of more than 700 design and construction firms. The study describes trade professionals as having a broad awareness, moderate adoption and high expectations for AI’s impact on their businesses. It also notes a clear call among those professionals for support, training and trusted tools to adopt AI safely and effectively.
Important numbers from the survey:
- 34% of respondents are already using AI in their businesses.
- Nearly 7 in 10 professionals say they know about AI; less than a quarter are not very familiar, and only 8% report no exposure at all.
- Nearly 3 in 5 professionals are familiar with AI tools built for construction and design workflows.
- Among users, reported benefits include greater productivity, reduced manual effort and improved organization; 58% say AI has had a moderate to significant impact on workflow and nearly three-quarters are satisfied with their experience.
- The survey also finds AI adoption is higher at firms with more than 10 employees, which suggests larger teams have resources to research and pilot new tools.
What pros use AI for — and what they worry about
Construction firms most often deploy AI for administrative work and project management. Designers use AI for admin tasks and content creation work. Common concerns are the reliability and accuracy of AI outputs, data security and privacy risks, and a lack of training or technical expertise. The Houzz report highlights a gap in training and support and frames that gap as an opportunity for solutions that integrate AI into familiar workflows.
Market moves around cloud, chips and data
Analysts and banks updated their views on several AI-exposed companies this week, reflecting the push to tie AI into enterprise workflows:
- Microsoft: One firm raised its price target based on sustained cloud and AI strength, pointing to Azure, Microsoft 365 Copilot and developer tooling as key drivers. That analyst lifted multi-year revenue and profit forecasts and emphasized Microsoft’s role as an AI infrastructure provider across many businesses.
- Nvidia: Another research group expects strong near-term results but cautions that China-related licensing and timing could keep some revenue out of guidance. Analysts still see meaningful supply ramp from new Blackwell chips and continued strong demand for GPU-powered AI servers, and several firms reiterated overweight views with raised targets.
- Snowflake: A major bank upgraded the stock to buy and raised its target amid signs of stronger demand for Snowflake’s data platform and developer tools. Analysts flagged more customer spending on AI workloads and expect Snowflake to be central to many enterprise AI stacks.
Palo Alto Networks: earnings, platformization and a CyberArk deal
Palo Alto Networks posted better-than-expected fourth-quarter results and lifted its fiscal 2026 outlook. Key results included adjusted EPS above estimates and revenue roughly in line with consensus. The company forecast higher EPS and revenue for fiscal 2026 than some street estimates. Banks cited strong execution, growth in next-generation security ARR and expanding software mix as reasons to raise ratings or stay constructive.
Operational and trend highlights:
- Total revenue topped $2.5 billion for the quarter and remaining performance obligations exceeded expectations, signaling forward revenue visibility.
- Software now accounts for a larger share of product revenues, and management describes a push to sell unified platform deals rather than standalone point products.
- Platform deals and large-account wins expanded significantly, and ARR growth in Cortex and Prisma Cloud was strong.
- Prisma Access Browser seat licenses rose quickly as enterprises adopt secure browser approaches to protect agentic AI and cloud workflows.
- AI-related ARR was cited as moving up rapidly, underscoring cybersecurity’s role as a second- or third-order play in the wider AI shift.
The company is awaiting completion of a planned CyberArk acquisition in the second half of its fiscal year. Management expects identity protection to become more central as agentic AI proliferates, pointing to identity and privileged access management as critical for securing AI agents and machine identities. The combined company aims to expand cross-selling, leverage telemetry synergies with security analytics, and boost adjusted free cash flow over the medium term. Analysts note execution and integration risk but see sizable upside if the integration succeeds.
Why this matters to design and construction firms
The tech and security moves matter because design and construction practices are starting to weave AI into everyday work. As firms rely more on cloud services, GPUs and broad data platforms, they must also weigh operational impacts such as data governance, secure identity for machines and agents, and practical training for staff. Larger firms are moving faster, but smaller shops will need accessible tools and training to capture the same gains.
Bottom line: The Houzz survey shows appetite and early wins, market players are scaling AI infrastructure and data services, and security vendors are positioning to protect the new flows of work. Construction and design practices that invest in training, vetted tools and basic security hygiene are likely to capture more of AI’s productivity gains while reducing risk.
FAQ
What did the Houzz 2025 State of AI in Construction and Design Report find?
The report, based on a survey of more than 700 U.S. design and construction firms, found widespread awareness of AI, moderate adoption, and high expectations for its impact. It notes 34% of firms already use AI and highlights a need for training and trusted tools.
How are design and construction pros using AI today?
Most use cases are administrative tasks, project management and content-related work. Users report improved productivity, less manual work and better organization.
What are the top concerns about AI in these trades?
Key concerns are accuracy and reliability of outputs, data security and privacy, and a lack of training or technical expertise to use the tools safely.
How do recent market moves affect firms in construction and design?
Cloud, chip and data vendors are investing in tools and infrastructure that will help firms run AI workloads. Security vendors are focusing on identity and secure browser strategies to protect AI agents and sensitive data — an important consideration as firms adopt more cloud-based AI tools.
What should small firms do first?
Start with training, pilot trusted tools for admin and project workflows, enforce basic data security rules, and consider third-party platforms that integrate AI into familiar systems.
Key features at a glance
| Feature | What it means |
|---|---|
| Study scope | Survey of more than 700 U.S. design and construction firms; report issued from Palo Alto, CA |
| Adoption level | 34% using AI; nearly 7 in 10 aware; 8% no exposure |
| Main use cases | Administrative work, project management, content creation for designers |
| Top concerns | Output accuracy, data security/privacy, lack of training |
| Market response | Price target increases and upgrades for cloud, chip and data firms; security vendors expanding platform and identity offers |
| Security focus | Platform deals, secure browser adoption, identity protection and telemetry integration with security analytics |
| Action items for firms | Invest in training, pilot trusted tools, enforce data and identity controls, consider platform consolidation |
Deeper Dive: News & Info About This Topic
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
Author: Construction TX News
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