Key facts
- New laws in California, Wisconsin, and New York are addressing the use of AI in real estate marketing.
- California's AB 723 requires disclosure of digitally altered images and access to original versions when AI changes visible elements.
- Wisconsin's Act 69 mandates disclosure for advertising altered by technology that creates a false or misleading impression.
- New York regulators have warned about misleading AI-generated listing imagery, with a pending bill S9584.
- Agents should disclose when AI creates a false impression of property condition, features, surroundings, or media capture method.
- A five-part test is proposed for agents to assess the need for disclosure before publishing AI-assisted listing media.
The increasing use of Artificial Intelligence in real estate marketing, particularly for visual content like listing videos and photos, is prompting new legal and ethical considerations for agents. While AI tools can enhance property presentations by virtually staging interiors, creating drone-style video from still images, or improving views, they also raise concerns about misrepresentation. New legislation in states like California, Wisconsin, and New York aims to address this by requiring agents to disclose when such technologies are used, especially if they alter a buyer's perception of the property's condition, features, or surroundings.
California's Assembly Bill 723, set to take effect in January 2026, mandates that real estate professionals disclose the use of digitally altered images and provide access to unaltered versions when software or AI changes visible elements such as furniture, landscaping, or views. However, basic edits like color correction and sharpening are permitted if they do not change the property's actual appearance. Wisconsin's Act 69, effective in 2027, takes a broader approach by requiring disclosure for any advertising altered by technology that creates a false or misleading impression, encompassing photos, reels, animations, and generated video.
New York regulators have already issued warnings regarding AI-generated imagery, and a pending bill, S9584, proposes to define 'digital representations' to include images, video, and immersive media, requiring disclosure for material alterations or generated elements. The article suggests that the core question for agents should not be whether AI was used, but whether the technology changed what a reasonable buyer would believe about the property or how the media was captured. It proposes a five-part test for agents to apply before publishing AI-assisted media, focusing on whether the technology added, removed, or materially changed property aspects, if it created movement or perspective not actually captured, if the change could affect a buyer's understanding or valuation, if the disclosure is easily visible to the buyer, and if the agent can document what was real versus altered.