Home automation is on the horizon. It is an emerging technology and also a need of today. From the last decade, a number of standards have been defined for home appliances. The main objectives of home automation are controlling, management and coordination of home appliances in a comfortable, effective and secure way. On the other hand, Artificial Intelligence is evolving as a technology for developing automatic systems that can perceive the environment, learn from an environment, and can make a decision using case-based reasoning. Using Vision capability, knowledge-based, learnability, decision making and reasoning the AI provide a better solution for almost all automatic systems. In this paper, we will see the types of home automation systems and then see how these systems can utilize the AI tools so as to increase the effectiveness, powerfulness etc.