How AI is Impacting the Furniture Industry in 2025

Furniture design used to be synonymous with craftsmanship, expertise, and limited quantities. Now, with automation and its related benefits, design takes far less time and scale is on a different level. Plus, with AI interior design, manufacturers can approach challenges with creative problem-solving. It’s a new era and there’s much to be gained for businesses that embrace its potential. Here’s a look at how automation is poised to shake up the furniture industry—and how you can get in on these exciting developments in 2024 and beyond.

AI in The Furniture Industry

It’s not a stretch to say that AI has touched every corner of the furniture business, from design to retail. These contextual examples illustrate its use case, significance, and relevance to manufacturers.

Design

Designers have far more choices than ever in terms of materials, function, and presentation, in part thanks to algorithms in AI interior design tools. More possibilities mean they have the time and space to explore design concepts and iterations at scale. The same goes for prototyping and iteration in the design process.

Automation also helps interior designers deliver on the triple threat of sustainability, ergonomics, and efficiency. No longer do they have to select one or two and sacrifice the rest. Instead, AI furniture tools make it possible to embrace environmental stewardship while also lowering costs.

This can be a boon to brand image, as today’s consumers value corporate social responsibility. As cited by the National Retail Foundation, GfK Consumer Life research found 62% of U.S. respondents identify climate change “as an extremely or very serious issue.” About one-third indicated they consider the environment all or most of the time when evaluating products.

Retail

Manufacturers aren’t the only ones who stand to gain from automation, however. Customers can shop more confidently with virtual showrooms and augmented reality (AR) apps, for example. These interior design solutions give them an idea of how the pieces will look and fit in their homes before making a purchase. This can decrease the number of returns while increasing customer satisfaction and loyalty.

Using AI can mean a more personalized shopping experience, too. Using data points such as purchase history, browsing history, and demographics, retailers can direct them to new products they might not otherwise discover. AI-powered chatbots can serve the same purpose, helping customers get answers faster than they might otherwise.

Manufacturing

AI-enabled automation means companies can access materials, curb waste, and help them compete especially in terms of quality. For instance, predictive maintenance can help them get in front of potential glitches and prevent costly downtime. This is a growing area of AI implementation, according to the May 2024 report, “Working Smarter: How Manufacturers Are Using Artificial Intelligence,” from the National Association of Manufacturers. Among its findings, more than 20 percent indicated they have already adopted AI in supply chain management. The majority, 60%, indicated they plan to do so by the two-year mark.

Automation can also be a winner in the areas of assembling, packaging, and logistics. No longer do companies have to choose between consistency or speed. Per the NAM report, AI technologies can help manufacturers of all kinds reduce production costs, improve factory processes to better serve workers and the planet, and bring new products to market faster.

Marketing

Algorithms have brought more accuracy to predictive analytics in terms of forecasting customer trends and spending. In turn, marketing teams can create targeted SMS marketing campaigns that motivate customers to purchase certain products. Image recognition technology can have the same effect. In this context, customers can upload images or use their cameras to help find items that align with their vision.

AI in The Future of Furniture Retailing

The furniture industry has entered a new era—and the supply chain is just one example of a real-world implication. Manufacturers can use machine learning algorithms and data analytics, specifically, to their advantage to reduce costs and speed.

AI Marketing

Data can help furniture companies get to know their customers better. Pulling from sources like social media, online activity, and buying patterns can help them create buyer profiles and segment them. Instead of taking a broad-stroke approach to marketing, they can create campaigns that resonate with where buyers are on their journey.

Supply Chain Optimization

Refining manufacturing practices may just be the tip of the proverbial iceberg. Demand forecasting, for instance, is the natural next progression. By analyzing historical sales data, industry trends, and other economic predictors, they can better align forecasts with inventory. Once it’s time to fulfill orders, AI can help manufacturers do it smarter. For example, algorithms can identify bottlenecks on the road and redirect delivery trucks to keep pace with delivery schedules.

AI in Interior Design: Personalized Customer Experience

It goes without saying that furniture brands need to consider how they’re providing customer support. Every minute counts when it comes to response time in retail. AI-powered virtual assistants and chatbots, built with natural language processing (NLP) and machine learning concepts, can fill in gaps in customer service. These tools can interact with customers at critical moments, helping guide them in their purchasing decisions based on their personal data.

Predictive Analytics and Sales Forecasting

Furniture manufacturers can look to AI-driven predictive analytics to forecast sales and scale up or reduce inventory. AI algorithms comb through internal and external sources to identify patterns, trends, and opportunities that conventional methods can’t do. These insights can help set them up for success when striking the delicate balance between inventory and demand.

Recommendation Systems Based on AI

AI algorithms can be gold mines because they generate product recommendations that direct people to buy products that meet their criteria on style, budget, etc. At the same time, these tools can help manufacturing leaders better understand the customer landscape and develop products that fill a gap.

AI Tools in Furniture Design

AI-powered furniture design has re-invented the way pieces are conceptualized, created, and manufactured. Here’s a look at a few of the ways this technology can be used to manufacturers’ advantage.

Enhanced Creativity

AI tools aren’t just popular because they can save time and money. They can also help design teams dream up new concepts that are attractive yet practical. This can mean playing around with form factors that might be outside of the norm. In this way, human-driven design bolstered by design AI can bring about the best of both worlds. Designers still rely on their creativity and talent to create design ideas that push the envelope but are also grounded in reality.

Optimized Functionality

AI helps improve furniture, specifically as it pertains to usability, comfort, and ergonomics. Simulation and modeling programs used in-house can help design teams iterate within clear bounds relating to both form and function. By relying on technology to introduce an element of objectivity, manufacturers can create long-lasting furniture people can imagine having in their home or office.

Sustainability

According to Grand View Research, the global eco-friendly furniture market size was valued at more than $43 billion in 2022. The market research and consulting company anticipates a compound annual growth rate (CAGR) of 8.6% from 2022 to 2030. The group cited increased consumer awareness of sustainability and the prevalence of sustainable raw materials as contributing factors.

AI can help furniture manufacturers meet the demands of the moment. Software programs call out areas where stakeholders can reduce waste while lowering energy consumption and emissions. At the same time, AI-powered technology can help manufacturing produce that’s more sustainable in the first place. This can be a triple win. Manufacturing is kinder to the planet. Customers, who are increasingly socially conscious, feel their spending reflects their values. In turn, furniture manufacturers feel like they’re part of the solution.

5 AI-Driven Furniture Engineering Design Applications

Furniture design can be both an art and a science. Removing the human element would show in the final product. Yet completely relying on analog systems isn’t practical either. AI-driven software applications have opened up possibilities for interior designers and their brands. Below, we explore five solutions in this space and outline their capabilities, key features, and costs.

SolidWorks

SolidWorks, Computer-Aided Design (CAD) software uses AI to reduce some of the busywork designers tackle each day so they can dedicate more time for creative experimentation.

SolidWorks’ 3D modeling, simulation, and rendering are premium features that help design professionals mock-up design concepts that will work in the real world.

SketchList 3D

SketchList 3D is marketed specifically to furniture designers. This app allows them to design beautiful and practical pieces via drag-and-drop assembly, material optimization, and integrated cut list generation. SketchList 3D offers a free trial. The premium version requires a one-time purchase.

Polyboard

Polyboard has positive reviews based on its user-friendly interface and dynamic parametric design capabilities. Its key features include dynamic 3D modeling, automatic generation of cutting lists, and virtual reality integration. Polyboard offers monthly subscriptions and an annual plan.

Pro100

Pro100 helps designers make the most of materials while minimizing waste and creating durable pieces. Pro100 offers customizable components and textures to aid in bringing concepts to life. Pro100 requires a one-time purchase.

SmartDraw

SmartDraw helps bring efficiency to everyday design tasks, while enhancing collaboration. The app’s drag-and-drop interface, template library, and cloud-based collaboration make it popular for team environments.

AI Furniture Trends To Look Out For in 2024

AI continues to evolve and impact so many facets of industries. The furniture business stands to gain from the following developments:

AI-Driven Customer Experience

No two company’s approaches will be the same, but here are a few areas where using AI will continue to influence the customer experience:

• Personalized Recommendations: Enhance the shopping experience with product recommendations and other ways to customize the buying journey.
• Chatbots and Virtual Assistants: Provide quick answers to customers and prospects, helping to make them feel seen and heard. See how Podium’s Webchat can help your furniture business.
• Voice Recognition: Integrate AI-driven voice recognition into apps and your website using voice commands, helping customers interact with your site and its assets.

AI-Enhanced Product Recommendations

Furniture manufacturers stand to gain a lot by using AI to curate suggestions. That might look like:

• Predictive Analytics: Use data to predict customer preferences and trends to better anticipate demand and shore up SKUs.
• Visual Search: Make it easier for customers to find exactly what they want by allowing them to upload images of products. The algorithm then produces similar results from the inventory, helping the customer save time in their search.
• Dynamic Pricing: Adjust product prices in real time, triggered by factors like demand, competition, and customer behavior. This can help manufacturers offer more competitive pricing.

AI-Driven Inventory Management

• Demand Forecasting: Predict future demand for furniture products, helping to thread the needle between inventory levels and buying patterns.
• Supply Chain Optimization: Identify areas where you can operate more lean, helping you save costs.
• Predictive Maintenance: Extract data from IoT sensors embedded in furniture products to anticipate maintenance needs, helping to minimize downtime and extend product life.

AI in Interior Design

• Virtual Reality (VR) and Augmented Reality (AR): Engage customers with a visual representation of how potential furniture pieces would look in their homes. This virtual staging can help them imagine how elements like furniture could fit into their interior design vision. More informed decisions can offset the number of returns and generally boost satisfaction.
• Style Recommendations: Present options based on buying history that will help the customer curate a space that reflects their personality and might introduce them to other design ideas.
• Virtual Vision Board: Empower the customer to play around with furniture layout suggestions based on practical and aesthetic considerations.

These AI-driven trends may only be just the beginning. As technology expands, manufacturers that adopt and adapt are more likely to weather uncertainty, rising customer expectations, and market changes. Those who wait for the “right time” might find themselves obsolete and wishing they had evolved with the times. Hindsight may be 20/20, but taking a proactive approach today can save you from the pain of missing out on sales later down the road.

Podium: AI For Furniture Retailers

Today’s customers expect you to communicate with them on their terms. Long wait times on the phone are relics of the past and can turn people off. Many customers want to cut to the chase to get answers faster—any hour of the day. They also want good service and support.

Yet technology doesn’t always hit the mark when it comes to connection. Sometimes bots sound like, well, bots. That’s one way Podium’s AI employee is different. It engages like a human, while saving the customer and the company time.

The right automation tool helps both customers and retailers win. Learn how you can turn every lead into meaningful conversations that drive sales with an all-in-one platform. Watch a demo today and explore Podium’s intuitive platform that can help your furniture business thrive and handle what’s next.