Home Depot Launches Ai Tool To Automate Contractor Material Lists

On Monday, The Home Depot announced it’s introducing software for builders, remodelers, and renovators that leverages AI to generate project lists in just minutes. The technology, Material List Builder AI, is one of scores of AI-driven software solutions aimed at increasing operational efficiencies – measured in build-cycle time and money – in the residential construction industry

Such innovations – should they reach critical mass among contractors and remodelers – may come as a boost at a time of squeezed margins and operational efficiency chokeholds. 

Strategically, Home Depot and its smaller rival Lowe’s have veered more aggressively toward positioning that encroaches on homebuilding industry incumbents in the “pro” segment of residential construction. In 2022, The Builder’s Daily reported:

“It’s no news that the two giants have committed and invested strategic focus on the new residential construction market of builders – large and small – for years to varying degrees. Those investments and strategic commitments, especially facing the higher volume builder market, have fluctuated primarily because those production homebuilding accounts presented a specific set of business challenges in distribution logistics, scale, profit margin, and cadencing.

“According to one executive with close ties to both the homebuilding enterprise sector and its distribution channel believes that Lowe’s and Home Depot may consider now the moment to encroach on turf Builders FirstSource, US LBM and ABC Supply currently hold, not just to grab share, but to align themselves as beacons of strategic capability as the channel takes shape over the next few years.”

Material List Builder AI uses domain-specific large-language models to understand a construction job’s intent and produce a materials list in minutes, automating a process that can typically take hours. The tool saves Pros time and can also protect margins by ensuring the generated product specifications list is as error-free as possible. 

“Pros often tell us that their most valuable resource for any job is time, so we’re focused on delivering solutions that empower Pros to work smarter and faster,” said Mike Rowe, executive vice president of Pro for The Home Depot, in a statement. 

Users can generate a material list by writing up project details, using a voice-to-text tool, pasting an existing list or using a starter template, the Home Depot press statement notes. Once the tool generates the material list, it can be edited and will include project phases, inventory availability, preferred pricing, and the ability to order the necessary materials. The release included an example of a written prompt. 

“We’re doing a primary bathroom remodel, replacing the double vanity with a more modern one, adding new recessed lighting, two new mirrors, and a new toilet. The customer wants black 12″ by 18” tile for the floor, grey hexagon tile for the shower,” the release said. 

Operational efficiency is key amid shrinking margins

The Home Depot’s Material List Builder AI is part of a larger AI-driven trend in the construction industry. There are other similar tools, such as Sitewire’s BudgetIQ feature, that automatically generate a budget or materials list for contractors, builders and remodelers. 

Operational efficiency has taken on an ever more critical role as shrinking margins, high building and borrowing costs and shaky consumer confidence have emerged as existential challenges. Many contractors and tradespeople who partner with homebuilders are now operating in an environment where they need to accept less favorable, i.e., lower margin contracts. This reality demands greater accuracy and efficiency.

A December report from the Associated Builders and Contractors found that only one-third of contractors expect profit margins to grow in early 2026, the lowest share in more than a year. Smaller contractors with under $30 million in annual revenues are hit hardest by the current market, experiencing their lowest backlog levels in more than four years.