By Shawn Jaryno, Associate Broker, EXIT on the Hudson Realty, NJ
Chatbots, A Cautionary Note.
In the rapidly evolving landscape of technology, chatbots represent a cutting-edge intersection of artificial intelligence and human interaction. These digital assistants, capable of simulating human conversation through text or voice commands, have found a place across various industries, including real estate. There are challenges and considerations when it comes to the deployment of chatbots, especially regarding legal and reputational risks.
Since their inception in the 1960s, chatbots have evolved significantly, with modern incarnations such as Siri, Alexa, and Cortana becoming household names. ChatGPT marks the beginning of a new era of accessible artificial intelligence, pushing the boundaries of what chatbots can achieve. For tech startups and established businesses alike, the allure of integrating chatbot technology into operations is strong, driven by the potential for automation and enhanced customer interaction.
Nevertheless, the incorporation of chatbots into commercial operations, particularly in regulated sectors like real estate, demands thoughtful consideration. Real estate professionals operate within a legal landscape that is fraught with potential liabilities, ranging from regulatory compliance to the potential hazards of litigation. The implementation of chatbots in this setting elicits significant apprehensions regarding the potential for misuse and the legal implications of chatbot interactions.
Several instances of chatbot manipulation have already been reported, with one notable case involving a UK-based shipping company whose chatbot was coerced into making derogatory statements, leading to reputational damage. https://www.telegraph.co.uk/news/2024/01/19/delivery-service-ai-chatbot-customer-unhappy/
Similarly, a car dealership in the United States faced a peculiar dilemma when their chatbot erroneously agreed to sell a car for $1. https://futurism.com/the-byte/car-dealership-ai.
Another instance of a chatbot violating fair housing guidelines is reported by “Wired” https://www.wired.com/story/algorithms-allegedly-penalized-black-renters-the-us-government-is-watching/. These incidents illustrate the inherent vulnerabilities of chatbot technologies and highlight the potential for significant financial and reputational harm.
Legal accountability for chatbot actions has also been affirmed in jurisdictions outside the United States. A case in Canada saw Air Canada held liable for misinformation provided by its chatbot. The case serves as a reminder of the legal responsibilities companies may have for their chatbots actions. These examples illustrate the critical need for robust risk management strategies in the deployment of chatbots. https://www.americanbar.org/groups/business_law/resources/business-law-today/2024-february/bc-tribunal-confirms-companies-remain-liable-information-provided-ai-chatbot/
Despite these challenges, the deployment of chatbots in industries like real estate is not advised against outright. Instead, businesses are encouraged to approach chatbot integration with a comprehensive strategy that includes risk assessment, thorough testing, and legal consultation. Resources such as Chatbot.com offer valuable guidance for businesses embarking on the development and implementation of chatbots.
Source: Chatbot.com
In conclusion, while chatbots present a frontier of opportunity for enhancing business operations and customer engagement, they also necessitate a cautious approach. Risk management, ethical considerations, continuous monitoring, and compliance with legal standards are key to navigating the complexities of chatbot deployment. With careful planning and consideration, businesses can leverage the benefits of chatbots while mitigating the associated risks, paving the way for innovative and responsible use of artificial intelligence in customer interactions.