Key facts
- NAR's Mike Woodward said 23% of agents use AI daily and 25% weekly, per the 2026 technology report.
- Woodward said free AI services may use input data for training, and advised paying for tools when handling confidential information.
- Woodward said Claude returned five of seven facts wrong when asked about his home records.
- Woodward said adding features like a fireplace or pool via AI image editing can breach the Realtor Code of Ethics.
- Woodward said virtual staging is acceptable if the original image is shown and the edit is labeled as AI-generated.
- Woodward said state legislatures and New York City are weighing regulation of AI use in real estate.
Mike Woodward, director of data science at the National Association of Realtors, warned real estate agents about the risks of using artificial intelligence tools during a session at the NAR 2026 NXT conference on Sunday, November 8, 2026. He argued that agents must understand how AI companies make money, noting that free services may use input data to train models. Woodward advised paying for tools and opting out of data retention when handling confidential information.
Woodward also cautioned that large language models can produce confident but incorrect answers. He described asking Copilot about supermarkets and schools near a Massachusetts town and receiving an incomplete list, and asking Claude to pull records for his home where five of seven facts were wrong. He said clients are already using AI and may arrive with inaccurate impressions, so agents should know what buyers think they know.
On imagery, Woodward said removing temporary blemishes or adding features like a fireplace or swimming pool can constitute misrepresentation under the Realtor Code of Ethics. He noted that AI editing tools can make unrequested changes, and that agents remain responsible for images published under their name. He pointed to growing public backlash and said regulators in some states and New York City are weighing rules.
He also highlighted low-risk uses such as summarizing soil reports, drafting listing descriptions from fact sheets, and building charts or presentations. For virtual staging, he said disclosure is required, with the original image shown alongside the edited one and clearly labeled as AI-generated.