-powered push to court pros move the needle in its own business?

Atlanta-based custom homebuilder Timothy ellsberry is impressed⁣ with Home Depot’s recent AI investments aimed⁤ at ⁢professionals. Ellsberry joined Home Depot’s Pro program in late 2024 and has reviewed, but not yet adopted, the company’s expanding digital tools, including the AI-powered BluePrint Takeoffs, launched in November.

The tool generates complete material and resource lists for project quotes and allows contractors ⁤to directly purchase everything from Home Depot. “As they ‍build their program,I could see myself⁢ shifting away from the CRM I’m using to a⁢ less expensive option because Home Depot is making those resources available,more or less for free,on their platform,” said Ellsberry,38,founder and lead developer of ERP legacy Developments.

Ellsberry estimates potential annual savings of $3,300 if he uses Blueprint Takeoffs. “When they add tools ⁣for us, it eliminates‍ extra expenses,” he said.

Home Depot is aggressively pursuing professional customers amid a slower-than-expected housing market recovery, which has ⁤impacted its stock. The 2024 acquisition of SRS Distribution and its ⁣trade credit system positions⁣ Home Depot to reach a larger contractor base.Trade credit lets contractors buy supplies and pay later.

According to Home Depot,⁢ combining trade credit with the⁤ AI power of BluePrint Takeoffs helps professionals grow their businesses.⁣ “We ⁤can get things back to a customer in a day or two, where it often took us seven, eight days⁢ or more,” said michael Rowe, an executive vice president of Home Depot’s Pro business. “Your conversion opportunity ⁣goes up, which leads to greater sales.”

Rowe declined to share specific conversion metrics but said Home Depot is ⁢seeing increased engagement⁢ with the tool as more takeoffs are completed. “We‍ certainly expect that conversion to improve,” he said.

Analysts question weather these new tools will improve Home Depot’s margins. “I don’t know if ‍it necessarily ⁣helps with the margin rates,” said Mizuho’s David Bellinger, adding⁤ that it⁣ depends on the items ‍sold.

Home Depot’s margins are already under pressure. Chief Financial Officer Richard ⁤McPhail said on the company’s ⁢latest earnings call that⁣ gross margin in the third quarter was 33.4%, flat compared to the same period last year. The company expects about 33.2% for the full year 2025.

Bellinger noted that big-ticket items pros typically buy in bulk-lumber, building materials, concrete, and appliances-have lower⁣ margins and are often discounted.