AI Rent-Setting Algorithms Ban Vetoed in Colorado

Colorado Governor Jared Polis vetoed a landmark bill that would have prohibited landlords from using artificial intelligence and algorithms to set rental prices. The legislation, which aimed to be the first of its kind in the United States, was designed to prevent discriminatory practices in rental pricing through automated systems. The governor argued that the bill was too broad and could have unintended consequences on beneficial uses of technology in property management. The proposed law would have banned automated systems that use historical pricing data to suggest or set rental rates, as critics argue these systems can perpetuate historical housing discrimination and lead to artificially inflated prices. Housing advocates supported the measure, claiming AI systems contribute to rising housing costs and can incorporate historical biases into their pricing models. However, property managers and real estate groups opposed the bill, stating that algorithmic pricing helps them operate efficiently and set competitive market rates. The veto highlights the ongoing debate about the role of AI in housing markets and the challenge of balancing technological innovation with consumer protection. The governor suggested a more targeted approach to addressing housing affordability and discrimination concerns, while preserving beneficial applications of technology in the real estate sector.

Source: https://abcnews.go.com/Business/wireStory/colorados-governor-vetoes-landmark-ban-rent-setting-algorithms-122352367