The New York Department of State is sounding the alarm on a growing trend: artificial intelligence-generated images being used to market homes — sometimes in misleading ways.
State officials say the use of AI tools to enhance or even fully generate listing photos is becoming more common in the real estate world, but it’s raising serious concerns about false advertising, consumer trust, and legal compliance.
“These automated technology tools may produce misleading or exaggerated representations of properties,” said Secretary of State Walter T. Mosley. “Consumers need to be vigilant, and agents must be honest.”
Real estate brokers and agents are already subject to laws that ban deceptive advertising. The state’s Division of Licensing says listing photos must accurately reflect the actual condition of a property. Misuse of AI could lead to disciplinary action, fines, or even license revocation.
The Department warns buyers to look out for signs of image manipulation — like blurry or inconsistent backgrounds, over-polished surfaces, or subtle distortions — and to never send money or personal information without seeing the property and verifying the agent.
Officials also pointed to a recent study showing that AI images in high-stakes purchases like homebuying often backfire. Buyers perceive AI-generated visuals as less authentic, less professional, and ultimately less trustworthy.
Tips for spotting deceptive listings:
- Check for visual inconsistencies or “too-perfect” images
- Always verify that the agent is licensed in New York
- Never send money before seeing the home in person
- Get referrals and do your research on agents and companies
Homebuyers who believe they’ve been misled are encouraged to file a complaint with the New York State Division of Consumer Protection or call the Consumer Assistance Helpline at 1-800-697-1220.
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