Hi, I’m Danielle Turner, Welcome to the Property AI Tools newsletter where I share weekly deep dives into AI topics, the latest AI tools and news, all specifically for real estate.
If you’re at a roadblock and don’t know where to start with using AI in your real estate business, schedule a 1-1 discovery call.
Today I’ll be exploring:
The core principles of ethical AI
The importance of ethical AI in real estate
Utilising ethical AI tools
LATEST TECH NEWS
Australia releases new guidance for AI adoption
The government releases foundational and implementation guidance for businesses.
Pizza Hut UK enters administration with 68 restaurants due to close
Over 1000 employees are at risk of redundancy. What will happen to the real estate?
TOOLS
🛠 Emergent
Emergent is a pioneering platform that enables you to build production-ready applications using only natural language prompts. By removing the need for traditional coding or developer expertise, Emergent empowers anyone to turn ideas into real, deployable products with the help of advanced AI.
🛠 Gamma
Gamma is an AI design partner that empowers you to create stunning presentations, websites, and digital content with ease. Gamma helps you to communicate ideas visually without the need for coding or design expertise.
What is Ethical AI?
In the context of real estate, Ethical AI is the key to making fair decisions when it comes to property valuations, buyer recommendations, or even managing tenant relations. Let's break down what this means.
Core Principles of Ethical AI
The foundation of Ethical AI is built on four main principles. Understanding these principles is crucial for real estate professionals who want to incorporate responsible AI practices in their business.
Fairness: AI systems should make decisions without bias. Like a real estate AI tool that fairly assesses the value of a property without prejudice to the neighbourhood or previous sales. Achieving fairness ensures everyone gets an equal opportunity.
Accountability: Just like a responsible agent who stands by their decisions, AI systems should be traceable and auditable, this means if an AI system suggests a wrong price estimate, a human should be able to identify why it happened and be able to intervene in decision making when things go wrong.
Transparency: You wouldn't trust a property deal without knowing all the details. Similarly, AI systems should be transparent in how they make decisions. You should be able to explain how and why the AI system made a decision. Understanding how a conclusion is reached helps build trust.
Privacy: Respecting privacy is as important in real estate as it is in AI. Ethical AI ensures that personal data is protected, much like keeping client information confidential during a property transaction.
The Importance of Ethical AI in Real Estate
Trust
It helps to instill trust in new technology by ensuring there is transparency in the data used and fairness in the machine learning models powering the system. When AI tools are used ethically, they can:
Provide accurate property valuations.
Offer unbiased recommendations.
Maintain privacy with secure data handling.
When a client uses an AI-powered tool to find their next home, knowing that the search results aren't swayed by hidden biases can reassure them. Ethical AI practices ensure clients receive genuine guidance, rooted in reliable, trustworthy data. I go into this topic in more detail here: Trustworthy AI in Real Estate .
Bias
AI algorithms are only as good as the data fed into them. Unfortunately, biases can creep in, affecting property valuations and accessibility. It's essential to recognise these biases and mitigate them to create a level playing field.
For example, if historical data shows a pattern of undervaluing properties in certain neighbourhoods, AI could unknowingly perpetuate this unfairness. By actively working to remove such biases, ethical AI ensures all properties are assessed fairly, giving every client equal opportunities. This not only promotes fairness but supports a more equitable market. You can explore this topic in more detail in my past edition Is AI Less Biased than Humans? .
Compliance
As regulations around AI and data usage continue to evolve, you must stay ahead of the curve. Failure to comply can lead to legal challenges and damaged reputation. Remaining compliant will ensure you avoid penalties and stay on the right side of the law.
Here are the regulations you need to be aware of:
The EU AI Act (in force)
The US Bill of Rights (draft)
Framework Convention on Artificial Intelligence (UK, EU & US)
If you’d like to find out whether the AI tools being used within your company are compliant, check out AI Rule Book, a tool I’ve developed to help you audit your AI systems and determine their risk level according to the EU AI Act.
Round Up
Take active steps towards integrating ethical AI into your everyday practices and start asking the right questions before exposing confidential data to new systems. Is this system secure? How has it been tested for bias? What data has been used to train the AI model?. This not only safeguards business integrity but also enhances the trust and confidence of clients.
Thanks for reading!
Would you like to sponsor this newsletter?
Email [email protected] to request our media kit