Ep 231: Business Behind the Design #2 - AI, Client Delays, and the Future of Design

Are your prospective clients taking longer to sign contracts? Are projects stretching across years instead of months? Are clients questioning purchases, breaking projects into phases, or running your designs through AI before making decisions?

In this episode of Business Behind the Design, Michelle Lynne is joined by Ruth Ann Jansen, Melissa Lee, and Erika Bonnell for an honest conversation about the realities interior designers are facing right now.

The panel discusses how shifting client behavior, economic uncertainty, AI, and increased competition are changing the design industry—and the strategies successful firms are using to protect their time, maintain profitability, and continue delivering exceptional client experiences.

From contract clauses and project pause fees to vendor relationships, luxury client experiences, and the growing importance of human connection in an AI-driven world, this conversation offers practical insights for designers looking to navigate today's market with confidence.

 

In This Episode, We Discuss:

• Why clients are taking longer to make decisions than ever before

• The impact of AI on the interior design industry

• How designers are protecting themselves from stalled projects

• Contract clauses every firm should consider

• Why your design fee must stand on its own—even if furnishings never happen

• The risks of relying on furniture margins to make a project profitable

• How to structure fees for long-term custom home projects

• The growing appeal of procurement support and outsourcing

• Why relationships still matter more than technology

• How luxury firms are elevating the client experience

• Building stronger relationships with vendors, builders, and trades

• Why some firms are becoming more selective about the projects they accept

• The future of AI and interior design

 

Key Takeaways

Clients Are More Analytical Than Ever

Designers across the industry are seeing clients spend more time researching, comparing options, and evaluating investments before committing. Economic uncertainty, increased competition, and access to AI tools are all contributing factors.

Protect Your Time with Clear Boundaries

Several panelists share how they're implementing project pause clauses, restart fees, contract expiration dates, and payment milestones to prevent projects from lingering indefinitely.

Design Fees Should Be Profitable on Their Own

One of the biggest mistakes newer designers make is reducing design fees in anticipation of earning profit through furnishings. The panel emphasizes the importance of pricing every service as a standalone offering.

AI Can't Replace Relationships

While AI may influence how clients research designers and products, the group agrees that successful projects still depend on expertise, experience, vendor relationships, and human connection.

The Client Experience Is Becoming a Competitive Advantage

Whether it's personalized gifts, thoughtful touchpoints, or simply understanding what matters most to clients, creating memorable experiences continues to set premium firms apart.

Go Deep, Not Wide

When it comes to vendors and product partners, building stronger relationships with fewer, carefully selected partners often creates better outcomes than constantly chasing new sources.


Connect with Michelle
You can check out our designer resources on The Design Bakehouse website or follow her over on IG @byMichelleLynne

Meet the Guests

Ruth Ann Jansen

President of The Dove Agency, helping interior designers streamline operations and scale successfully. IG: @thedoveagency

Melissa Lee

Founder of New South Home, known for creating elevated, highly personalized client experiences while delivering beautifully designed homes. IG: @newsouthhome

Erika Bonnell

Founder of Erika Bonnell Interiors, specializing in luxury residential interiors and operational systems that keep projects moving efficiently. IG: erikabonnellinteriors