The normal development of “smart buildings,” which calls for integrating sensors, rich data, and artificial intelligence (AI) simulation models, promises to usher in a new era of architectural concepts. AI simulation models can improve home functions and users’ comfort and significantly cut energy consumption through better control, increased reliability, and automation. This article highlights the potential of using artificial intelligence (AI) models to improve the design and functionality of smart houses, especially in implementing living spaces. This case study provides examples of how artificial intelligence can be embedded in smart homes to improve user experience and optimize energy efficiency. Next, the article will explore and thoroughly analyze the thorough analysis of current research on the use of artificial intelligence (AI) technology in smart homes using a variety of innovative ideas, including smart interior design and a Smart Building System Framework based on digital twins (DT). Finally, the article explores the advantages of using AI models in smart homes, emphasizing living spaces. Through the case study, the theme seeks to provide ideas on how AI can be effectively embedded in smart homes to improve functionality, convenience, and energy efficiency. The overarching goal is to harness the potential of artificial intelligence by transforming how we live in our homes and improving our quality of life. The article concludes by discussing the unresolved issues and potential future research areas on the usage of AI in smart houses. Incorporating AI technology into smart homes benefits homeowners, providing excellent safety and convenience and increased energy efficiency.