AAC is a highly thermally insulating concrete-based material used for both internal and external construction. Besides AAC's insulating capability, one of its advantages in construction is its quick and easy installation, because the material can be routed, sanded, or cut to size on site using standard carbon steel power tools.

AAC is well suited for urban areas with high rise buildings and those with high temperature variations. Due to its lower density, high rise buildings constructed using AAC require less steel and concrete for structural members. The requirement of mortar for laying of AAC blocks is reduced due to the lower number of joints. Similarly, the material required for rendering is also lower due to the dimensional accuracy of AAC. The increased thermal efficiency of AAC makes it suitable for use in areas with extreme temperatures, as it eliminates the need for separate materials for construction and insulation, leading to faster construction and cost savings.

Even though regular cement mortar can be used, most of the buildings erected with AAC materials use thin bed mortar in thicknesses around ⅛ inch, depending on the national building codes. AAC materials can be coated with a stucco or plaster compound to guard against the elements, or covered with siding materials such as brick or vinyl.