The use of artificial intelligence (AI) in interior design is changing how designers approach creativity and functionality. AI can automate tedious operations, optimize space arrangements, and create bespoke designs based on user preferences. This study investigates the use of AI-powered design tools in many elements of interior design, such as idea development and instructional applications. Case studies of AI-generated design projects demonstrate the benefits and drawbacks of existing AI technology in reflecting consumer demands. This study highlights the significance of enhancing AI databases and proposes techniques for efficiently incorporating AI into both the professional design process and design education.