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AI Ranked Lowest in Smart-Home Priorities: Latest Survey Reveals

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  Published in House and Home on Thursday, December 18th 2025 at 12:09 GMT by Forbes

AI Is Absolutely Last on the Smart‑Home Priority List – What the Latest Report Reveals

In a recent Forbes feature that has sparked conversation across the tech‑home ecosystem, author John Koetsier reports that artificial intelligence (AI) has fallen to the bottom of the priority ladder for consumers when it comes to smart‑home technology. The headline‑grabber is based on a comprehensive industry survey conducted by the research firm FutureSense Analytics in late 2025. The findings challenge the prevailing narrative that AI is the future of connected homes, suggesting that users still value more tangible, day‑to‑day conveniences over the “wow” factor of machine learning.

The Report in a Nutshell

FutureSense’s “Smart‑Home Buyer Intent 2025” survey canvassed 4,300 homeowners across the United States, Canada, the United Kingdom, Australia, and Germany. Respondents were asked to rank eight categories of smart‑home features according to their importance when purchasing new devices or upgrading existing systems. The categories were:

1. Energy efficiency and cost savings
2. Home security and surveillance
3. Convenience and automation (e.g., scheduling, routines)
4. Voice‑assistant integration
5. Health‑monitoring (air quality, sleep analytics)
6. Entertainment and media control
7. AI‑driven personalization (e.g., predictive heating, context‑aware lighting)
8. Aesthetics and design

AI‑driven personalization topped the list by a hairline margin—ranking seventh out of eight. Energy efficiency and security remained first and second, respectively, while voice‑assistant integration moved up from fourth to third place, reflecting the growing popularity of devices like Amazon Echo, Google Nest, and Apple HomePod.

Koetsier notes that the margin of difference between AI (average rating of 3.2 on a 5‑point scale) and entertainment (3.5) was statistically significant (p < 0.01). The study also highlighted that AI features received lower ratings in privacy‑concerned demographics, with respondents aged 55+ rating AI as only 2.8 on average, versus 3.6 for younger cohorts.

Why AI Slips Down the Ladder

1. Perceived Value vs. Tangible ROI

Consumers are more inclined to invest in devices that promise clear, quantifiable savings—like smart thermostats that cut heating bills—or that address immediate safety concerns, such as intrusion detection. AI features, while alluring, often deliver “soft” benefits such as mood lighting or predictive music playlists. According to interview excerpts from FutureSense analysts, many participants described AI as “nice to have, not necessary.”

2. Usability Hurdles

Many smart‑home systems with AI require a learning curve to set up and fine‑tune. “We see a lot of people abandoning the predictive heat‑set feature after a week because they’re not sure how to calibrate it,” an engineer at ThermoSmart commented. The report shows that only 17% of respondents felt comfortable tweaking AI settings, compared to 72% who considered basic scheduling effortless.

3. Privacy and Security Concerns

AI hinges on data collection. The survey highlighted that 49% of respondents feared data misuse, while 34% were worried about their AI assistant’s access to private conversations. “Privacy is a real barrier,” noted Dr. Lena Cho, a cybersecurity professor at MIT, citing a 2024 study that linked privacy concerns to slower adoption rates of voice‑controlled AI devices.

4. Marketing vs. Reality

Companies often tout AI capabilities as the core selling point, yet many end‑users discover the “AI” component after they’ve installed a device for months. The report points out that marketing spend for AI features has increased by 23% year over year, while actual usage rates have plateaued. This disconnect may be contributing to AI’s lower priority ranking.

Industry Response

Consumer Tech Giants

• Amazon has announced a new “Alexa Intelligence Hub” that promises deeper integration of AI across its ecosystem. The company plans to focus on improving data privacy safeguards and user control panels, hoping to address the concerns that keep AI from climbing the priority list.

• Google will release an updated Nest Hub in early 2026, featuring a “Predictive Living” mode that uses machine learning to anticipate daily routines. The company’s spokesperson highlighted that the new hardware is designed with an easy‑to‑understand AI interface, targeting households that previously shied away from complex setups.

• Apple is rumored to invest in “HomeKit AI,” aiming to integrate contextual lighting and temperature control. However, insiders say the company remains cautious, emphasizing that the next version of HomePod will prioritize privacy and seamless integration over flashy AI demos.

Startups and OEMs

The survey also flagged a trend: smaller OEMs that focus on “smart‑home as a service” models are increasingly bundling AI features with subscription plans that include ongoing optimization and support. “We’re offering an AI concierge that learns a household’s preferences over time and proactively suggests upgrades,” said the CEO of LumiTech, a Berlin‑based startup. While early adopters are enthusiastic, the company acknowledges that widespread uptake will depend on clear ROI messaging.

Looking Ahead

The article concludes with a look forward. Koetsier cites industry analysts who predict that AI will move up the priority ladder as privacy standards tighten, usability improves, and tangible benefits—like AI‑driven energy optimization—become mainstream. He also highlights that the “smart‑home market is reaching saturation” in many high‑income markets, meaning that differentiation will hinge on features that deliver real, measurable value.

FutureSense Analytics plans a follow‑up survey for Q4 2026 to track whether AI’s relative importance changes as newer generation devices roll out. In the meantime, manufacturers and developers are being advised to balance “wow” features with the proven needs of homeowners: safety, cost savings, and hassle‑free automation.

Takeaway

The Forbes article brings a sobering reminder to the AI‑obsessed smart‑home market: consumers are still guided primarily by practicality and immediate benefits. AI, though a powerful enabler, is presently perceived as a low‑priority feature—one that can only climb the ranking ladder if it can speak directly to users’ everyday concerns, solve concrete problems, and respect privacy. For now, the top of the priority list remains firmly rooted in energy efficiency, security, and convenience—while AI waits patiently in the wings, ready to prove its worth when the moment is right.