The homebuilding industry is a ripe opportunity for artificial intelligence, according to industry observers. After all, the industry has been notorious for slow tech adoption and inefficiencies, Forbes said recently.
But that also means that there is a solid opportunity to embrace AI and prompt innovation and help industry organizations “future-proof.”
“People think it’s a really technical concept, part of it is art and part is science, but really, it’s all about practice,” said Jeff Willert, Director of Data Science at Schneider Electric Advisory Services. “It’s about finding the right data, right knowledge base, the right subject matter expertise and putting it in the equation so tools provide appropriate guidance.”
Willert said he is building his expertise along with his team. Internally, they competed in a Shark Tank-type challenge for ideas and now are implementing solutions that have turned monthlong processes into a couple of days, Forbes reported. Willert recognizes the value of the partnership between man and machine, Forbes said, where man doesn’t always need to be displaced.
AI can speed processes, Forbes said, but the tech needs to rely on the 20-plus years of expertise that the organization has created.
Most Builders Are Still on the AI Sidelines
According to survey responses in conjunction with the most recent NAHB/Wells Fargo Housing Market Index (HMI), most builders are still on the sidelines when it comes to AI — but the association said that early signs suggest change might be on the horizon.
As of July 2025, NAHB said that AI use in single-family home building is concentrated in only a couple of business areas: About 20% of builders are using it to generate advertising and marketing materials, while 11% leverage AI to analyze markets and plan future projects.
Cnversely, fewer than 5% are applying AI to any of 10 other business functions — ranging from project design to operating automated construction equipment, NAHB said.
When asked how likely they are to begin using AI in the next two years, NAHB said that builders expressed strong interest, particularly in the areas of marketing, advertising and project planning. Nevertheless, NAHB said that interest in adopting AI for other business functions remains low.
Forbes noted that the homebuilding industry is made up of many small and medium-sized businesses that can take a similar approach to what large organizations are doing
“Businesses of any size can start experimenting with AI tools such as ChatGPT, Gemini, or Microsoft Copilot,” Willert said. “In some respects, small businesses may even have an advantage over larger enterprises. Large organizations often face slower adoption due to strict IT policies and lengthy procurement processes. Small businesses can typically move more quickly and adapt to new technologies without as many bureaucratic hurdles.”
Forbes said that many small companies won’t have in-house expertise, which it said is valuable because applying AI the right way takes an intimate knowledge of the company. In fact, more consultants are starting to offer strategic services to help analyze opportunities and develop solutions< Forbes said.
An AI Starting Point
For someone in housing, Willert said he suggests a starting point: Identify which non-physical tasks are the most costly or time-consuming.
He said that, for example, can data-driven decision-making improve project timelines and increase client satisfaction? Are there opportunities to optimize deliveries and reduce costs? Can automation of record-keeping, budgeting, procurement, or other back-office functions save on labor costs?
“For a [building product] retailer or manufacturer, I would take a similar approach,” Willert said. “The focus would be on identifying where time or money is being lost due to slow, tedious, or outdated processes. Manufacturers could benefit from advanced metering and predictive maintenance. By monitoring equipment for power consumption, temperature, and vibration, it is possible to detect when maintenance is needed before a breakdown occurs, which can save significant costs and downtime.”
Michael Anschel, a principal at OA Design+Build, said he agrees that AI can allow smaller companies to be more competitive on a larger landscape.
Anschel has been in the industry for decades and now he is developing and sharing his own expertise in AI.
One challenge for those involved in homebuilding and remodeling is marketing and promotion, he said. Anschel said that agentic AI can build a website for a new or existing homebuilding company in less than 15 minutes.
“AI will do a better job understanding projects than a builder will,” Anschel said. “Imagine you have drawings, specs, project management software, schedule all put into an AI tool that can put out a very accurate takeoff, from how many fasteners to how many sheets of drywall, and all the other pieces on a complex scale.”
He said that AI can identify if something is out of sequence and can propose an alternative sequence. Ai can produce estimates if it is tied into a database, and it will help fill in blanks, he said. AI also can provide accurate, real-time information on a project.
“The advantage for a builder is to be able to query the system and the LLM can produce the response without calling a designer or production manager,” he added. “Tasks that just burn time, that can be automated and that can take a load off the construction team.”
Billions Wasted on AI Pilot Programs
Now, Forbes noted that there also are agentic tools that can negotiate on a pro’s behalf.
“A super exciting piece is that AI agents will negotiate and work with each other,” Anschel said. “A builder who wants to source material, doesn’t want to call hundreds of lumber yards or distributors. He can tell agentic AI what he’s looking for, it goes and scours the agent web or internet and negotiates with other agentic AIs for the best deal on what he has set up – price, timeline, product, availability, grade, quality, depending on the authority you give it, it can complete the entire transaction for you, or it can bring it back for you to approve.”
Forbes noted that recently MIT published a study, “State of AI in Business 2025,” that reported a waste of billions of dollars invested in AI pilots that are not producing results, but not because of the tool, but because of a phenomenon called the GenAI Divide. The study looked at 300 implementations where most failed due to exposed workflows, lack of contextual learning, and a misalignment with day-to-day operations.
Willert said he has done that experimentation and now has named AI agents that sit on organizational charts.
“The agents were running at 50% accuracy when launched, after a month they were running at 90%, and now at 99.9%,” said his colleague, Steve Wilhite, executive vice president at SE Advisory Services. “The value creation is astounding. As a leader, I didn’t want to relegate decision making to an agent at 56% accuracy. But at 99.9%, I know the agent is taking care of it.”
Forbes added that much of the construction industry is mired in fear of losing personal connection, which drives their business.
“Business today is both global and local,” Willert said. “Leveraging AI is not about replacing the expertise of a local business, but about making that expertise more accessible. AI’s effectiveness depends on the people building it and the context provided to the system. Though I’m not a building expert, I think it’s important to ask whether an AI tool at a large retailer understands the user’s local context. Local building codes and material preferences can significantly affect recommendations.”
The post For Homebuilders, It’s Time to Embrace the Future of AI first appeared on The MortgagePoint.
