Why contractors should embrace the AI smart home
AI-driven smart homes aren’t just a trend - they’re an upsell opportunity, a customer retention tool, and a way to future-proof your business. Here’s how to spec, install, and sell them profitably. In recent years, connected or smart home products have become even smarter thanks to the integration of artificial intelligence, or AI. More manufacturers are leveraging AI and predictive analytics in their high-tech home features, increasing the home’s efficiency.
Contractors and builders are using smart home automations to build or renovate homes that today’s customers want to buy. Not only can these systems improve the daily routine for homeowners, but they also allow for predictive home maintenance. By adding smart home starter kits and custom smart home integrations in bids, builders and contractors can stay at the forefront of the market. Technicians looking to get a smart home technician certification can turn to CEDIA, who offers four credentials within their Smart Home Professional Certification.
What is an AI smart home system?
The term AI has a broad definition. In general, it refers to machines having the ability to “learn” when and how to do a certain task based on data, which is made possible through algorithms.
In terms of smart home automations, AI refers to products like smart thermostats and smart sensors that are engineered with voice assistance and learning algorithms. An AI smart home system allows the homeowner to manage these products through one device or app, controlling the entire system from anywhere in the world, if it’s on Wi-Fi.
Smart home building ideas for contractors
The concept of the smart home has evolved since it was first introduced on the consumer market. Initial smart house systems had to be physically wired together with cords and cables. Today, installing an AI smart home system is much simpler because of wireless network technology like Wi-Fi, Bluetooth, Zigbee or Z-Wave.
Examples of smart home products include:
Garage door openers
Many of these products connect to the various components of heating and cooling systems that HVAC professionals routinely maintain. This makes it a logical next step to offer smart home product installation as a complement to the HVAC installation and services that you’re already performing.
The benefits of smart home automations
Integrating smart home automation in a home can not only help lower the environmental impact of the home, but it can also improve security and make the home more appealing to buyers.
Lower environmental impact
Most smart home products can either be programmed for the best times to run to save energy or will use AI to run at optimal times. They’re a great choice to lower environmental impact as they can respond to residents’ schedules and even the weather to run more efficiently. ENERGY STAR reports that a smart home using AI uses less energy and offers more convenience for residents.
Security benefits deliver peace of mind
Smart home products and remote monitoring often bring greater security benefits and peace of mind. Customers won’t have to wonder whether or not they remembered to turn off appliances. They’ll also be able to view what’s happening in their home with a few taps on their phone.
Appealing for buyers
Homes with upgraded, efficient appliances and systems are typically more appealing to buyers, whatever the market brings. Coldwell Banker reports that the majority of potential homebuyers in America prefer AI smart home products installed prior to purchase, including cameras, lighting, fire and carbon monoxide detectors and thermostats.
Smart home system integration considerations
When offering clients smart home automation, consider how you’re integrating the system into the build. The type of system you choose, protocol you select, and network security you integrate will all impact how homeowners interact with the devices installed.
Hub-based vs. Hub-less systems
As you build out a smart home system, one of the first considerations is whether to choose a hub-based or hub-less system. Hub-based smart home systems route all devices to a single hub, which simplifies daily management of every smart device in the home. This central hub enhances home automation because every device can be controlled through the hub, but it also can cause one point of breakdown should the hub ever fail.
A hub-less system can be more scalable over time, but it means that each device operates independently, and you don’t have the ability to control many different devices from one central tablet or device. Hub-less systems can work for a tech-savvy client but would require them to automate the home through numerous apps.
How to choose protocols (Wi-Fi, Zigbee, Z-Wave) based on home size and device load
Choosing the right protocols begins by determining which devices you plan to integrate into the system. Wi-Fi and ethernet provide long-range options, while Zigbee and Z-wave are mesh networks delivering a more extended reach. When choosing which is right for the build, it’s important to ensure that the smart home devices you’re installing are compatible with the protocol you’re considering. Wi-Fi and ethernet protocols may consume more power than Bluetooth, Zigbee, and Z-Wave, but that isn’t the only cost consideration. Consider the cost of the initial devices and infrastructure installation when choosing the proper protocol for a build.
Network security basics for connected devices
Setting up a secure smart home network is essential for customer safety. With more smart devices on the market today, it’s essential to protect customers from cybercriminals with proper security measures. All smart devices need to be connected to a secure router that includes the latest safety features and encryption protocols. Provide a second layer of protection by adding either a hardware-based or software-based firewall to the system. Finally, as with any electronic device, it’s important to encourage clients to choose strong passwords and create a routine for regular security updates.
Smart Home System Installation Checklist
Choose a smart home system
Install reliable Wi-Fi
Verify network strength in all device zones
Plan outlet locations for smart appliances
Confirm breaker capacity for added load
Account for privacy considerations
The smart home market for builders
The smart home market is expected to grow more than 10% every year through 2028, according to Grand View Research. Customers want to increase their comfort while they reside in their home and also grow value for when they’re ready to sell.
The smart home market offers a revenue opportunity for savvy builders and contractors. Offering a “Smart Home Starter Kit” in initial bids can not only help win you the bid, but it also allows you to offer other opportunities for upsell. Make maintenance worry-free for homeowners by offering to use smart data for predictive maintenance upsells or offering post-install support plans for system troubleshooting down the line.
By embracing AI smart home systems, contractors and builders can position their businesses for success—strengthening relationships with current customers and expanding to new customers as well.
Partner with Ferguson to build AI smart homes
If you’re ready to learn how to grow your business with smart home automations, Ferguson can help. Our knowledgeable associates have expertise in the products you need to build an AI smart house system, including smart kitchen and bath, security, voice assistance, safety and energy.
Explore our vast inventory of smart home products.