The use of artificial intelligence (“AI”) is rapidly transforming the workplace. According to a recent report by Gallup, 45% of employees surveyed reported using AI at least a few times a year to help save time and improve efficiency by automating basic tasks, consolidating data, and making predictions, among others[1].
The rise in the use of AI in real estate can be seen with marketing materials, such as social media content and virtual staging, Chatbots that communicate with customers and/or clients, and in lead generation. While AI presents many ways to positively enhance the workplace, there are challenges that cannot be ignored. Responsibly using AI in your real estate practice requires careful consideration of the following:
Privacy and Client Confidentiality AI content is generated by patterns derived from datasets. The information provided to AI is generally stored and used to improve future responses. Are you using AI to review contracts and documents that contain personal identifying information (PID) for your clients such as a date of birth or social security number? Do you provide AI with bank account information to assist in trust account reconciliation? This data is retained by AI and poses a significant confidentiality risk and a potential breach of your fiduciary duty to your client. Consider what steps you have taken to ensure that this sensitive client information is protected when using AI and make sure your clients PID is protected. You should also discuss the use of AI with your clients and obtain their permission prior to using any AI tools to assist in your representation that include PID.
Compliance with Law and Commission Rules There are a number of ways in which AI can be inaccurate – sometimes with wrong or fake information or by completely omitting information. AI is also known to have algorithmic bias and therefore potentially violate the Fair Housing laws. Never assume that the information obtained from AI tools is accurate. Did you use AI to assist in marketing a property you have listed for sale? You are responsible for the representations made in the advertisement and should check for accuracy.
If you are using AI in your brokerage, the Commission recommends that you develop policies and procedures to ensure that the information generated by AI complies with the law and Commission rules. Conduct internal audits, provide employees with routine training, and stay up to date on the rapidly changing AI environment.
[1] “AI Use at Work Rises” https://www.gallup.com/workplace/699689/ai-use-at-work-rises.aspx