What intrinsic attributes constitute the essence of living space, and how are these spaces discerned and defined in the contemporary architectural context? This study explores the dynamic relationship between ambiance, spatial design, and human well-being within residential environments. Utilizing a multidisciplinary approach that integrates insights from psychology, architecture, and interior design, the project investigates the dynamic interplay between space structuring, functional organization, and decorative elements in shaping the ambiance and functionality of living rooms. This approach integrates empirical surveys with Generative Algorithms and a Hybrid Recommender System, representing a symbiosis of human intuition and machine precision, not only challenging traditional architectural practices and highlighting the potential of generative AI in design but also offering new insights into designing for user’s needs and emotional regulation. The implications of this research are significant for architects, designers, and stakeholders in the residential design process. It highlights the necessity of a replicable model for consensus on space-ambiance combinations, pointing towards generative design and machine learning as promising tools for bridging the gap between subjective perceptions and objective design goals.