Zillow has been at the forefront of using artificial intelligence in the real estate industry for over 15 years. House owners and buyers have trusted Zillow’s Zestimate since its establishment in 2006, over a decade ago, despite the recent surge in the popularity of generative AI models. For almost twenty years, this pioneering solution has offered numerous consumers critical information about the potential market value of real estate properties.
Summary
Moreover, Zillow’s dedication to AI-powered innovation extends way beyond their previous AI models. Recently, Zillow unveiled its latest AI model, the Fair Housing Classifier, which is poised to transform the industry and showcases Zillow’s dedication to fostering an equitable and inclusive real estate environment for all.
It’s fascinating how numerous modern digital tools, such as chatbots, rely on the remarkable capabilities of large language models (LLMs). These LLMs are extensive digital libraries filled with conversational language data. While incredibly powerful, LLMs can also inadvertently perpetuate biases present in the data they’ve learned from.
In real estate terms, this bias is sometimes manifested as the practice of “steering,” where a buyer’s decision can be influenced based on LLM data, which can be flagged as a violation of fair housing laws, and Zillow wants to confront this matter head-on.
That’s where the fair housing classifier comes in. This AI tool acts as a vigilant guard that is constantly monitoring conversations and flagging any language that goes against federal, state, and local anti-discrimination laws. The system can respond appropriately when it detects a red flag, ensuring that all interactions comply with the law.
However, Zillow is not keeping this groundbreaking technology to themselves. As a testament to their dedication to driving change across the industry, they have decided to make the Fair Housing Classifier available as an open-source solution. Intending to create a fairer housing landscape, Zillow is enabling real estate professionals, tech developers, and civil rights advocates to access this tool and work together.
In a recent discussion on PropTechBuzz’s Global VIP Chat Stream, industry leaders weighed in on Zillow’s latest initiative to open-source its AI technology. Here are their insights:
Scott Petronis, Founder & Principal Consultant | Xcentric Consulting, LLC
“ For one, I think Zillow is trying to get out in front of the industry in terms of thought leadership. There is significant movement on the AI front and many of the companies experimenting here don’t have deep knowledge of the industry and, from what I’ve seen, certainly haven’t taken into account fair housing or other regulatory constraints. So Zillow made a smart move here. And by open sourcing this, Zillow expects to get contributions back to help reinforce the tech/model and make it stronger. So they will benefit from that assuming others embrace it.
Michelle Suarez, Proptech/Real Estate enthusiast | Grace Hill
“The World Economic Forum published guiding principles as industries integrated in AI. The document is called “Empowering AI Leadership: AI C-Suite Toolkit.” In the article, it addresses Ethics in AI and ensuring non-discriminatory practices are followed in data sets and the extracted products of AI. This move by Zillow addresses concerns in the industry of adhering to Fair Housing. This risk mitigation move is exciting to see as AI progresses further into the marketplace, advancing and tweaking its weaknesses.”
Chase Pursley, Founder | Appraisal Inbox
“Too bad that the Fair Housing library is language specific (just python). The sample questions seem to be heavily skewed towards a particular political persuasion instead of balanced. https://github.com/zillow/fair-housing-guardrail/blob/main/examples/datasets/sample_data.jsonl But I do appreciate the effort, I’ve been struggling to get LLMs to conform to avoid certain topics related to “appraisal bias”.”
Proactive Thought Leadership: Zillow is positioning itself as a thought leader in the proptech industry by proactively embracing AI and setting a standard for others.
Industry Knowledge and Ethical Considerations: Zillow’s initiative addresses crucial aspects like fair housing and regulatory constraints, distinguishing it from other companies lacking this depth of industry knowledge.
Collaborative Innovation: By open-sourcing its AI technology, Zillow invites contributions that can enhance and strengthen its models, driving collaborative innovation.
Alignment with Ethical Standards: Zillow’s move aligns with the World Economic Forum’s guiding principles on ethical AI and non-discriminatory practices, addressing industry concerns around fair housing compliance.
Risk Mitigation: Zillow’s approach mitigates risks associated with fair housing regulations as AI progresses further into the marketplace.
Addressing Bias and Practical Limitations: While Zillow’s initiative is commendable, it’s crucial to address practical concerns like language limitations and potential bias in the training data, to ensure fairness and accuracy in AI applications within real estate.
These expert opinions highlight the significance of Zillow’s move, underscoring its potential to lead the industry in both innovation and ethical standards.
From the pioneering Zestimate to the game-changing Fair Housing Classifier, Zillow’s AI journey is a testament to the power of technology to drive positive change. As they continue to push the boundaries of innovation, we can’t wait to see what they’ll come up with next.
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By Proptechbuzz
By Ravi Kumar
