In today's rapidly evolving landscape, the integration of emerging technologies like artificial intelligence and connectivity solutions is reshaping real estate. However, as technology grows, so does the need for responsible implementation and regulation. In a recent discussion with Kevin Donnelly, Executive Director & Chief Advocacy Officer at the Real Estate Technology & Transformation Center (RETTC), we explored the critical role of technology in real estate, the need for responsible tech development, and the ongoing push for supportive legislation.

The Promise and Challenges of AI in Real Estate

AI is making waves in various sectors, and real estate is no exception. According to Donnelly, AI holds tremendous potential in improving processes like resident screening and property management. However, he stresses the importance of maintaining human oversight in these AI-driven processes.

"We acknowledge that AI is not perfect and emerging tech is emerging," Donnelly said. "We have to keep a human fingerprint on it." He emphasizes that while AI can help reduce bias—particularly in resident screening—it requires careful oversight to ensure it operates within the framework of laws like the Fair Housing Act and Fair Credit Reporting Act.

Donnelly explains that while emerging tech like AI can remove human bias from processes that have historically been influenced by unconscious prejudice, it is vital to ensure that the algorithms and models behind these technologies are properly understood and managed. As a result, a balanced approach that integrates both technological innovation and human intervention is essential to maximize the benefits of AI in real estate.

The Role of Advocacy in Shaping Tech Policy

As AI continues to evolve, it's crucial that legislators are equipped with the knowledge needed to create policies that foster innovation without compromising consumer protections. Donnelly stresses the importance of advocacy in helping policymakers understand the positive impact of real estate tech.

"Real estate tech is a force for good," Donnelly asserts, pointing to the bipartisan support that has emerged in Congress for a thoughtful approach to AI regulation. For the first time, both Republicans and Democrats have come together to engage in discussions about AI and emerging technologies, with a focus on balancing innovation with consumer protection.

However, Donnelly notes that while federal lawmakers are beginning to take a cautious and open-minded approach, some states and localities have already started passing laws that restrict the use of AI and algorithms, which he sees as counterproductive. According to Donnelly, these local regulations, if unchecked, could stifle innovation and ultimately harm consumers.

Bridging the Divide: Consumer Protection vs. Technological Growth

As the conversation shifts, Donnelly highlights the two major perspectives that influence this debate: consumer advocates focused on privacy and the future of AI, and technologists who are optimistic about AI's potential. He believes that the real estate tech industry, including organizations like RETTC, occupies a unique position to bridge these two viewpoints.

"We need to harness both the consumer protection angle and the technologists' vision, bringing them together to create a balanced, pro-housing, pro-tech policy," Donnelly explains. This balance, he argues, is essential for addressing critical issues like housing affordability and supply while leveraging technology to drive meaningful improvements.

Donnelly emphasizes that tech solutions like construction tech, financial services, and resident-facing tools are crucial in addressing the housing challenges of the future. At this moment, he believes, technology has the potential to do more good than ever before in the housing sector.

Four Key Advocacy Priorities for Real Estate Tech

Donnelly outlined four key policy priorities that RETTC is focusing on in its advocacy efforts on Capitol Hill:

1. Real Estate Tech as a Force for Good
   Educating lawmakers about how technology is improving resident outcomes, enhancing housing affordability, and streamlining property operations is a priority. Donnelly stresses that tech's impact should be seen as a net positive for the industry.
2. Connectivity and the Backbone of Multifamily Housing
   Connectivity is at the core of modern multifamily housing operations. Donnelly highlights the importance of reliable broadband and the growing role of smart technology, from leak detection to access control systems. He points to the role of bulk billing in providing affordable broadband options for multifamily communities and warns against regulations that may unintentionally limit access to essential services.
3. Data Privacy and Consumer Security
   As data privacy becomes an increasingly important issue in the digital age, Donnelly advocates for a national standard for data privacy. Currently, the patchwork of state and local data privacy laws creates confusion and compliance challenges, particularly for national real estate firms. A federal standard, Donnelly believes, would protect consumers and simplify compliance for businesses.
4. Responsible AI Regulation
   Donnelly calls on policymakers to continue their cautious and open-minded approach to AI regulation. He stresses the importance of understanding the technology before enacting restrictive policies, allowing AI to evolve and expand its role in real estate while still ensuring protections for consumers.

The Importance of Local Advocacy and Education

While RETTC focuses on federal policy, Donnelly acknowledges the crucial role of local and state advocacy in shaping the future of real estate tech. He emphasizes that much of the work to educate policymakers at the local level is carried out by organizations like the National Apartment Association (NAA), which helps to flag issues and support local property owners and advocates.

"In collaboration with the NAA and its affiliates, we can raise awareness about the implications of local regulations on tech adoption," Donnelly says. Educating local policymakers about the value of tech solutions—like bulk billing and data privacy standards—is key to ensuring that local laws support innovation rather than hinder it.

Moving Forward: A Collaborative Approach

As the real estate tech industry continues to evolve, the need for collaboration between technology developers, housing providers, consumer advocates, and lawmakers has never been greater. Donnelly is optimistic that by working together, stakeholders can create policies that foster innovation while protecting consumers.

"We're at a moment where real estate tech can do better, and we finally have the tools to make real, meaningful progress," Donnelly concludes. With the right balance of advocacy, education, and thoughtful regulation, technology will continue to play a transformative role in the future of housing.

In an era where technology is constantly evolving, the conversation between real estate professionals, policymakers, and consumers will remain essential in shaping the future of housing. By staying informed and engaged, we can ensure that technology continues to work for the good of all.