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Editor’s note: This article was written and edited with the assistance of AI tools.
Artificial intelligence has become ubiquitous in our daily lives, from Google searches and maps to popular graphic design software such as Canva and smart-home devices like Alexa. However, with the growing use of AI-powered tools like ChatGPT in the real estate industry, it's essential to understand the potential risks and dangers. While the benefits of AI are vast, real estate professionals must remain vigilant and take proactive steps to mitigate potential risks, such as fraud and scams, cyberattacks and data breaches.
By addressing the potential dangers of AI, adopting ethical standards and safeguarding consumer data and privacy, the real estate industry can continue leveraging technology's benefits while protecting the interests of all parties involved in real estate transactions. Here are the top potential safety and security dangers of artificial intelligence in the real estate industry:
Misinformation
AI systems can be used to generate fake reviews, testimonials, articles, emails and other types of information which could mislead buyers or sellers.
Solutions:
- Train agents and staff to detect, recognize and report fake information.
- Use AI systems that can detect and flag fake information, but understand that this is not an exact science yet.
- Develop guidelines and best practices for ethical AI usage that include avoiding creating and distributing fake information.
Data Security
The use of AI in the real estate industry involves collecting and analyzing large amounts of personal and financial data, which could be vulnerable to security breaches or unauthorized access.
Solutions:
- Implement strong security measures, such as encryption, access controls and monitoring tools, to prevent unauthorized access to sensitive data.
- Regularly review and update security protocols and procedures to stay ahead of emerging threats.
- Use AI systems that can detect and alert to potential security breaches.
- Regularly review and update security protocols and procedures to stay ahead of emerging threats.
Job Displacement
AI systems could automate certain real estate industry tasks, leading to job displacement for some workers. Therefore, it may be tempting to use AI-generated content to take the place of professional advice, including legal, tax, HR, risk assessment or even safety training. Based on new laws and rules, plus unverified information, relying on AI-sourced knowledge places the agent or brokerage in danger. Use professional safety and security experts to reduce liability.
Solutions:
- Limit, control and verify the contents and use of AI regarding critical safety and security topics.
- Build a culture of trust and transparency by communicating openly about the role of AI in the workplace.
- Engage verified experts to advise on updated and relevant laws and rules.
Fraudulent Property Listings
AI systems could be used to create fake property listings, which could deceive real estate agents, buyers and sellers.
Solutions:
- Use AI systems that can detect and flag fake property listings based on patterns or inconsistencies in the data. You should understand that this technology isn’t exact, so additional verification needs to be conducted.
- Verify the identity of the seller or buyer to ensure they are legitimate as well.
- Conduct thorough due diligence, including previewing and inspecting the property as well as reviewing legal documents.
- Use Google Lens to see if the property has been or is currently listed.
- Review Google Maps to confirm the existence and location of the property.
Phishing Scams
AI-generated emails and messages could be used to trick agents and consumers into giving away personal and financial information.
Solutions:
- Educate agents and staff on how to recognize and avoid phishing scams.
- Use AI-powered anti-phishing tools that can detect and prevent malicious emails from reaching the intended recipients.
- Regularly test and update security protocols to stay ahead of emerging threats.
- Confirm and verify the contents of the message in the email.
Ransomware Attacks
Cybercriminals could use AI to identify vulnerabilities in a real estate company’s network and launch ransomware attacks, which could result in the loss of important data.
Solutions:
- Implement robust security measures to prevent ransomware attacks, such as data backup and recovery plans, network segmentation and intrusion detection systems.
- Use AI systems that can detect and prevent ransomware attacks by identifying and blocking suspicious network activity.
- Engage an IT and security professional to regularly review and update security protocols and procedures to stay ahead of emerging threats.
Automated Scams
AI systems could be programmed to automatically send out scam messages to potential buyers or sellers in order to extract money or sensitive information.
Solutions:
- Educate consumers, staff and agents on how to recognize and avoid scam messages.
- Regularly test and update security protocols to stay ahead of emerging threats.
Fake AI-Generated Identities
AI systems could be used to create fake identities, which can be used to impersonate real estate agents or consumers to steal money or sensitive information.
Solutions:
- Verify the identity of agents or consumers using multi-factor authentication or other secure methods.
- Educate all parties about this cyber threat and potential danger.
- Regularly review and update security protocols and procedures to stay ahead of emerging threats.
False AI-Generated Property Documents
AI systems could be used to create fake property documents, such as deeds or titles, which could deceive buyers and sellers.
Solutions:
- Use AI systems that can possibly detect and flag fake property documents based on patterns or inconsistencies in the data.
- Verify the authenticity of property documents using legal and regulatory guidelines.
- Research county property records to confirm the authenticity of the documents.
Mitigating these risks requires the real estate industry to be aware of the potential dangers and develop robust cybersecurity protocols to protect customer data and safeguard against cyberattacks. Expert-led training to assess, spot and determine dangers will help alleviate and overcome these potential crimes.
