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AI Regulation Debate Heats Up at 2026 REALTORS Legislative Meetings
When the 2026 REALTORS Legislative Meetings opened its doors, a new battleground emerged—AI in real estate. Industry leaders, technology experts, and policymakers gathered for a Regulatory Issues Forum titled “AI Innovation, Real Estate & Regulation: A Candid Discussion about AI Regulation,” focusing on how artificial intelligence can be encouraged while safeguarding responsible use.
The forum’s opening fireside chat was moderated by NAR Director of Legal Advocacy Caitlin Vannoy. The conversation was graced by Michael Kratsios, assistant to the president and director of the White House Office of Science and Technology Policy. Kratsios underscored the need to maintain U.S. leadership in emerging technologies amid growing global competition and pointed out that real estate is an ideal field for AI applications.
Kratsios emphasized that small businesses now have access to powerful tools that were previously unavailable. He said, “I think there is no better time in history to be a small business owner than today. There is no more powerful tool that has ever been created in the history of the world that a small business can use and wield for its own benefit. And we’re seeing this across so many different industries.” The remark highlighted AI’s potential to level the playing field for small real‑estate firms.
After the chat, Sipho Simela, founder and CEO of Matrix Rental Solutions, moderated a panel with Adam Thierer, resident senior fellow for technology and innovation at the R Street Institute, and Travis Hall, director for state engagement at the Center for Democracy and Technology. The panel explored how AI is already influencing business operations, consumer access to information, and professional decision‑making in real estate.
Panelists noted that AI tools are increasingly used to streamline administrative tasks, enhance marketing efforts, analyze market trends, and improve customer service. Thierer remarked, “In my 35 years of doing technology policy in this town, I’ve never really seen a level of activism or interests surrounding any technology policy issue as much as we’re seeing around artificial intelligence right now in the United States.” The discussion underscored the rapid adoption of AI across the industry.
The forum also tackled the regulatory challenge of balancing innovation with safeguards that promote transparency, accountability, and consumer trust. Hall pointed out that AI systems often lack a layer of testing and responsibility. He said, “There is a layer of testing and responsibility for these tools that is missing. The problem with artificial intelligence is that it obfuscates; it obfuscates how decisions are made based on which information, right? It obfuscates responsibility. Who is ultimately responsible when things go wrong?” The comments highlighted the importance of accountability mechanisms.
Thierer expressed hope for clearer regulations but cautioned that the status quo may persist in the next year. He stated that ongoing engagement between industry leaders, policymakers, and technology experts is essential to ensure that innovation benefits consumers while preserving trust in the real‑estate marketplace. NAR’s Chief Advocacy Officer and Executive Vice President Shannon McGahn echoed the panel’s concerns, noting, “Artificial intelligence is already beginning to reshape the way business is done across industries, and real estate is no exception.” McGahn added, “It’s important that policymakers strike the right balance, encouraging innovation while ensuring consumers remain protected and the real‑estate marketplace remains fair, transparent and competitive.”
The session concluded with a consensus that AI will continue to transform real‑estate operations, but that regulatory frameworks must evolve to address transparency, accountability, and consumer protection. The REALTORS Legislative Meetings will likely revisit these issues in future sessions as the industry and policymakers work toward a balanced approach that encourages responsible AI adoption.
The forum’s opening fireside chat was moderated by NAR Director of Legal Advocacy Caitlin Vannoy. The conversation was graced by Michael Kratsios, assistant to the president and director of the White House Office of Science and Technology Policy. Kratsios underscored the need to maintain U.S. leadership in emerging technologies amid growing global competition and pointed out that real estate is an ideal field for AI applications.
Kratsios emphasized that small businesses now have access to powerful tools that were previously unavailable. He said, “I think there is no better time in history to be a small business owner than today. There is no more powerful tool that has ever been created in the history of the world that a small business can use and wield for its own benefit. And we’re seeing this across so many different industries.” The remark highlighted AI’s potential to level the playing field for small real‑estate firms.
After the chat, Sipho Simela, founder and CEO of Matrix Rental Solutions, moderated a panel with Adam Thierer, resident senior fellow for technology and innovation at the R Street Institute, and Travis Hall, director for state engagement at the Center for Democracy and Technology. The panel explored how AI is already influencing business operations, consumer access to information, and professional decision‑making in real estate.
Panelists noted that AI tools are increasingly used to streamline administrative tasks, enhance marketing efforts, analyze market trends, and improve customer service. Thierer remarked, “In my 35 years of doing technology policy in this town, I’ve never really seen a level of activism or interests surrounding any technology policy issue as much as we’re seeing around artificial intelligence right now in the United States.” The discussion underscored the rapid adoption of AI across the industry.
The forum also tackled the regulatory challenge of balancing innovation with safeguards that promote transparency, accountability, and consumer trust. Hall pointed out that AI systems often lack a layer of testing and responsibility. He said, “There is a layer of testing and responsibility for these tools that is missing. The problem with artificial intelligence is that it obfuscates; it obfuscates how decisions are made based on which information, right? It obfuscates responsibility. Who is ultimately responsible when things go wrong?” The comments highlighted the importance of accountability mechanisms.
Thierer expressed hope for clearer regulations but cautioned that the status quo may persist in the next year. He stated that ongoing engagement between industry leaders, policymakers, and technology experts is essential to ensure that innovation benefits consumers while preserving trust in the real‑estate marketplace. NAR’s Chief Advocacy Officer and Executive Vice President Shannon McGahn echoed the panel’s concerns, noting, “Artificial intelligence is already beginning to reshape the way business is done across industries, and real estate is no exception.” McGahn added, “It’s important that policymakers strike the right balance, encouraging innovation while ensuring consumers remain protected and the real‑estate marketplace remains fair, transparent and competitive.”
The session concluded with a consensus that AI will continue to transform real‑estate operations, but that regulatory frameworks must evolve to address transparency, accountability, and consumer protection. The REALTORS Legislative Meetings will likely revisit these issues in future sessions as the industry and policymakers work toward a balanced approach that encourages responsible AI adoption.
