Artificial Intelligence Legal and Ethical Considerations

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Artificial Intelligence is a powerful tool in real estate and everyday life offering brokers, firms, educators, and consumers ways to analyze market data, automate communications, and simplify transactions. However, with the growing use of AI comes legal and ethical responsibilities that real estate professionals must understand.  

Fair Housing Compliance: Artificial intelligence tools can unintentionally cause harm with algorithm bias. For example, algorithms may limit the visibility of property listings to specific demographics based on historical data or online patterns. This could violate the Fair Housing Act, as well as state laws, if certain protected classes are excluded. The National Fair Housing Alliance is addressing this issue and working to eliminate bias in algorithmic based systems used in housing and financial services. NFHA’s Tech Equity Initiative is working to outline ethical standards for responsible tech and advance effective policies for regulating AI tools in the tech field. Brokers are ultimately responsible for ensuring their marketing and outreach practices align with Fair Housing Laws, regardless of tools used.  

Privacy: Some AI platforms rely on personal data, location history, finances, and other protected information. Brokers using AI-generated property valuations, chatbots, or targeted ad tools should be transparent with clients about how their technology works and what data is needed. 

Transparency: Clients and customers have a right to know how decisions are being made, especially when it involves automated programs.  

Over-Reliance: Artificial intelligence should enhance workplace duties and tasks, not replace it. While automation is helpful, you should not rely on the technology and always make sure to review any automated output.  

Stay Informed: As AI technologies evolve It is important to stay informed about their use and potential implications. You should do your research on third-party tools, understand the data inputs and outputs, and ensure that these systems align with North Carolina License Law and Commission Rules.  

Artificial Intelligence offers some efficient tools to modernize and simplify real estate in North Carolina, but its use must be approached with caution and ethical standards. Intelligence offers some efficient tools to modernize and simplify real estate in North Carolina, but its use must be approached with caution and ethical standards.