Key facts
- AI tools are being used to access MLS data, often bypassing bylaws.
- Attempts to access MLS data via AI have surged significantly.
- Security risks include exposure of lockbox access, seller information, and agent data.
- Some agents are selling AI tools that violate MLS terms of service.
- AI browser extensions can pose security and privacy risks.
- Market data accessed by AI bots is used to train large AI models.
Real estate agents are increasingly employing AI tools to access Multiple Listing Service (MLS) data, often in ways that contravene existing bylaws and raise security concerns. These AI-driven assistants are being used for tasks such as buyer searches, generating comparative market analyses (CMAs), and trend research.
Solid Earth CEO Eric Steggman stated that his company's security software is currently blocking up to 1,200 daily attempts by these AI assistants to access MLS data, a number that has "exploded" from less than 10 six months prior. Few MLSs have formal policies governing AI use or permit such direct access.
Agents like William Zhang, who runs the Real Estate AI Society, and Brendan Bartic, founder of Listing Beast, are showcasing how to use AI tools, including browser extensions, to interact with MLS data. Zhang received a warning from his local MLS for allowing an AI to directly access his account, which carries risks of exposing sensitive information like lockbox access, seller details, and agent data.
Bartic, in a video demonstrating a Claude-based browser extension for CMA generation, claimed it was permissible as it works with an authorized login, similar to a browser tab. However, this method is described as a violation of REColorado's data provider Cotality's terms of service, which prohibits automated devices from accessing, monitoring, or data mining the services. Bartic is selling this tool to followers.
Cybersecurity firm Crowdstrike highlights that AI browser extensions, while boosting productivity, can introduce unique security and privacy risks due to their deep access to browsers and potential data transmission to external AI services. HousingWire's inquiries to Cotality and REColorado did not yield a response.
Bartic acknowledged that AI is evolving rapidly and outpacing industry rules, suggesting MLSs should create approved paths for AI tool usage. He noted the significant viewership of his demonstration video, indicating strong agent interest in AI applications for their business, coupled with a potential lack of understanding regarding secure and compliant usage.
Alex Gustafson, whose company Oppy builds AI agents, believes that reducing friction in accessing tools is crucial for business progress. Justin Lundy, founder of Lundy.ai, emphasized that the primary risk of unregulated AI access to MLSs is the storage of agent credentials, which can be hacked. He also pointed out that market data accessed by these bots is used to train large AI models, potentially sharing broker property data without consent.