Window to the Law: Legal Tips to Use AI in Your Business

Window to the Law: Legal Tips to Use AI in Your Business

Jul 14, 2023
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Understanding the risks of using AI is critical to avoid ethical issues and potential legal liability. Learn best practices for incorporating generative AI into your business, including creating marketing content and listing descriptions.

Window to the Law: Legal Tips to Use AI in Your Business — Transcript

Generative AI is exciting technology with the potential to significantly alter many professions. As with any new technology, understanding the risks of using AI is critical to avoid liability. In this video, we’ll review best practices for incorporating generative AI into your business. 

Business use of AI is widespread. You may already interact with AI without even realizing it, including through chat bots, personalized advertising, and automated messaging. Generative AI is a type of artificial intelligence that learns from large data sets to create new content based on user commands. Generative AI has been a topic of research for many years, but public awareness dramatically increased starting in late 2022 with the launch of platforms like ChatGPT and Stable Diffusion. Follow these best practices when using generative AI in your real estate business to, for example, create social media posts, draft property descriptions, edit listing photos, improve lead generation, or any other potential application.

  1. Always review AI-generated content for accuracy. AI platforms are not 100% accurate, which makes your oversight critical.

    This is especially important when using generative AI in connection with listing content, such as property descriptions or listing photos. You are ultimately responsible under Articles 2 and 12 of NAR’s Code of Ethics to ensure your representations and communications are honest, truthful and avoid exaggerating, misrepresenting or concealing pertinent facts. Don’t rely on AI to get your marketing materials and listing content right - ensure the AI-generated content you use is accurate.
  2. Protect personal information from being shared with an AI platform. Information provided to a generative AI platform is used to train the AI for future interactions, so personal information you input may not remain private. AI platforms are also vulnerable to data breaches like any other website.
  3. Ensure your ownership over work you wish to protect. Under U.S. Copyright law, a work must be authored by a human to qualify for protection, meaning AI-generated works are not protectable. While copyright law may evolve, for the time being, be sure you create content that you want to be able to protect.
  4. Seek appropriate advice from actual professionals, such as an attorney, accountant, or financial advisor. AI is not a licensed professional, and the platforms make no reliable warranties or representations. Many state laws and Article 13 of the Code of Ethics prohibit the unauthorized practice of law, so avoid using AI to draft contracts, modify standard forms, or provide legal advice to clients.

While AI can provide valuable assistance in the real estate industry, your human expertise and oversight remain essential. Laws governing use of AI will certainly evolve, and we will keep you updated on new developments, including on the topic of copyright infringement.

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