A new era of architectural ideas is likely to be ushered in by the natural progression of "smart buildings," which necessitates the integration of sensors, rich data, and artificial intelligence (AI) simulation models. Better control, enhanced reliability, and automation are just a few ways in which AI simulation models can make homes more convenient, more comfortable, and more energy efficient. This article discusses the ways in which AI models can be used to enhance the development of smart homes, particularly in the realm of interior design. This case study demonstrates how AI may be integrated into smart homes to enhance the user experience and reduce energy consumption. After that, the essay will delve into the study of current research on the application of AI technology in smart houses, utilizing a wide range of novel concepts such as smart interior design and a Smart Building System Framework based on digital twins (DT). The benefits of employing AI models in smart homes, with an emphasis on living areas, are discussed at length before the paper concludes. The theme's case study is meant to inspire new ways of thinking about how artificial intelligence (AI) might be practically implemented in smart homes to enhance their utility, comfort, and environmental friendliness. The ultimate objective is to maximize the benefits of AI in order to revolutionize domestic life and enhance the quality of human existence. Unanswered questions and promising directions for future AI research in the realm of smart homes are addressed in the article's last section. Smart houses that incorporate AI technology are beneficial to homeowners because they improve security, convenience, and energy economy.