Artificial intelligence is showing up everywhere in real estate—from listing descriptions and content creation to property search and showing apps. But not all AI is created equal.
The real question for MLSs, brokerages and agents isn’t whether to use AI, but how to use it safely. Because what most professionals don’t realize is this: If you or your customers are using free or off-the-shelf AI tools from unvetted vendors, you may be exposing your business to serious risks: legal, reputational and financial.
Start with strategy—not shortcuts
AI is not a magic trick or a plug-in. It’s a complex set of systems that relies on massive volumes of data. Data is the key to the successful use of AI. The higher the quality of data used with the right guardrails, the better the outcome.
The problem? Too many firms in our industry are rushing AI features to market without understanding how they’ll work—or fail—in a real estate context. Worse, many fail to disclose how they built their AI, if your data is used for training, or whether your data could be exposed, sold or repurposed later.
AI vendor transparency isn’t just about performance—it’s about safety. AI models trained on proprietary data without clear boundaries can create a severe liability. And once that data is out, it can’t be pulled back. Just do a home search on a popular chatbot and you’ll see what I mean.
If it’s free, you’re the product
Using a free or lower-cost AI model may seem like a money-saving move. But without transparency around how that tool works, who owns it and where your data goes, you’re giving up more than you are getting.
In many cases, you’re not the customer—you’re the input.
Whether it’s listing data, client info or market behavior, once your system is connected to an ungoverned model, there’s no guarantee that information stays protected. And if a vendor can’t tell you how they secure your data or comply with emerging AI regulations, it’s time to walk away.
Why responsible AI starts with strategy, security and the right data partner
At Cotality, we’ve taken a different approach. We believe AI must be built with intention—not as a bolt-on, but as part of a broader data and security strategy. That means putting in place clear guardrails before any feature goes live, aligning every release with MLS rules and licensing requirements and ensuring our AI models are trained only on trusted, permissioned data.
We also monitor AI-related legislation across all 50 states and at the federal level—because compliance isn’t optional, and regulations are evolving fast. We believe our MLS partners and broker clients deserve tools that are not only powerful but defensible.
Trust is earned: it must be protected
Your reputation is on the line every time you recommend a tech tool. If something goes wrong, they won’t blame the AI provider—they’ll blame you. That’s why the partners you choose matter.
Cotality has been a leader in AI for decades, as evidenced by our Case-Shiller U.S. National Home Price Index, launched over three decades ago. Our scientists use AI to deliver insights on over 140 million parcels, such as industry leading valuation models, computer vision on aerial imagery and optimal workflow solutions using generative AI. And our Clareity Assure offerings are synonymous with safety and security.
That same discipline—backed by our massive ongoing investment in R&D—powers all our AI solutions, including Generative AI solutions and, soon, Agentic AI solutions. So, when we deploy these advanced tools, you can rest assured that your data, customers and brand are protected.
For more information on preparing for your AI-driven future, Cotality offers a real estate AI eBook. Visit cotality.com/ai-in-real-estate.
