Will AI make real estate fairer or more biased? - Chicago Agent Magazine Association News

Technology is transforming every corner of our industry — from how we market properties and qualify buyers to how we generate leads and close deals. Artificial intelligence in particular is being hailed as a game changer, and in many ways, it is.
But here’s the question we have to ask ourselves as professionals committed to protecting homeownership, equity and opportunity for all:

Is AI helping us eliminate bias in real estate, or is it reinforcing it in ways we don’t even realize?

This is not just a tech issue, it’s a fair housing issue, and the decisions we make today will determine whether technology levels the playing field or codifies existing inequities into the digital systems of tomorrow.

The promise of AI

Let’s start with what AI can do. It offers enormous potential to reduce human error and increase consistency. An AI-powered chatbot doesn’t size someone up by their appearance or surname. Algorithms can process massive data sets faster and more objectively than any one person. In theory, these tools are neutral. In fact, we’re already seeing real benefits:

Automated prequalifications can speed up the path to homeownership.

AI-led routing tools can ensure quick responses to all clients, no matter their schedule or zip code.

Smart listing platforms can recommend properties to buyers based on preferences and behavior, without human filtering.

When used thoughtfully, AI can help us serve more people more fairly.

But bias can be baked in

Unfortunately, the reality isn’t always so rosy.

AI systems are only as fair as the data they’re trained on, and in real estate that data often reflects decades of redlining, discrimination and unequal access to credit and opportunity.

Take automated valuation models (AVMs). Studies, including one by Freddie Mac, have shown that AVMs are more likely to undervalue homes in majority Black and Latino neighborhoods. Not because the algorithm is explicitly biased, but because the historical data it’s learning from is.

Or consider digital ad targeting. It wasn’t long ago that agents could filter audiences for housing ads based on age, gender or ethnicity, practices that directly violate the Fair Housing Act. Even today, poorly designed AI marketing tools can exclude certain communities based on seemingly “neutral” factors that have discriminatory outcomes.

We’ve also seen tenant screening platforms use facial recognition and scoring systems that misidentify or unfairly penalize renters of color, immigrants and those with nontraditional incomes. These tools were built for efficiency, not equity.

Our role as professionals

As Realtors, we have a duty to more than just innovation. We have a duty to ethical, equitable innovation.

We must go beyond simply using these tools. We need to understand them, question them and advocate for transparency from the companies creating them. Ask vendors:

• How was your algorithm trained?
• What data sets were used?
• Have you tested it for disparate impact?
• What’s your process for flagging and correcting bias?

If we wouldn’t accept discrimination from a colleague, we shouldn’t accept it from a computer, especially one that touches everything from mortgage underwriting to client communication.

While none of us need to become coders, we do need to understand how these tools shape outcomes because once we know, we can’t unknow.

Leading toward solutions

There are bright spots. Companies like Fannie Mae are testing alternative credit scoring models that factor in rent, utility and phone payments, opening the door to homeownership for more Americans. Some MLSs now use AI to flag potentially discriminatory language in listings before they go live. Even HUD has begun piloting algorithmic audits to catch digital redlining.

As an industry, we need more of this.

At Illinois REALTORS®, we’re focused on helping our members navigate this tech-driven future with integrity and clarity. That includes offering continuing education on digital ethics, engaging with proptech leaders and advocating for policies that prioritize fairness in the tools we all use.

Tommy Choi is the 2025 president of Illinois REALTORS®.