Know the Emerging Trends in AI Laws and Regulations Before You Install
by Tyler Craddock
One of the topics residing nearest and dearest to property managers’ hearts is the topic of preventative maintenance. These days, the vast array of preventative technologies available to property managers is mind boggling; there are sensors for detecting minor leaks before you have major mold damage, security systems designed to prevent scams and frauds that target residents and potential residents, and even wall plug-ins designed to help elderly residents age in place while making sure their loved ones know they are doing just fine on a daily basis.
It is not surprising with all this new and increasingly advanced and aware technology that property managers are encouraging rental owners and residents to install these valuable types of technology. The amount of money a simple humidity detector under a sink can save you is nothing to sneeze at.
Before you install a full suite of devices, however, be sure you are aware of the emerging trends in AI laws and regulations. Getting it wrong can land a well-meaning property manager on the wrong side of an invasion-of-privacy lawsuit.
Know the Frameworks & How They Apply to You
Three major federal AI frameworks are taking shape right now, and property managers should be watching all of them closely.
In March of this year, the Trump Administration released a National Policy Framework for Artificial Intelligence, calling on Congress to pass a single national AI standard that would preempt conflicting state laws — which could mean fewer state-specific regulations for property managers to navigate, though the final shape of those laws will directly affect how AI tools can be used on the job.
Then, in late April, Congressmen Ted Lieu (D-CA) and Jay Obernolte (R-CA) — former co-chairs of the Bipartisan Artificial Intelligence Task Force — introduced the American Leadership in AI Act, a package of more than 20 bipartisan proposals drawn from the Task Force’s prior work.
Rounding out the picture is the Senate’s Bipartisan Senate AI Policy Roadmap, released in 2024 by a working group led by Senate Majority Leader Chuck Schumer and Senator Mike Rounds. The result of nine Insight Forums involving more than 150 experts, it is less a bill and more a comprehensive agenda meant to steer multiple Senate committees as they develop their own AI legislation. Think of it as the Senate’s long to-do list for AI policymaking.
Three Roads, One Destination
All three frameworks share the same broad goals: keep America at the forefront of AI innovation, help workers and small businesses benefit from the technology, and protect Americans from its risks. But they get there differently.
The administration’s framework is the leanest — a high-level blueprint that leans on existing agencies and industry-led standards rather than creating new regulatory machinery. The House bill is more hands-on, laying out specific programs including a new Center for AI Standards and Innovation at NIST and dedicated small business resources. The Senate roadmap casts the widest net, covering everything from workforce retraining and national security to election integrity. Most notable for property managers: The roadmap calls on Senate committees to specifically investigate the opportunities and risks of AI in the housing sector, with a focus on transparency and accountability. That is your industry on the radar.
The Importance of Awareness
One element of AI in property management that could become very contentious for property managers and residents is that AI and machine learning systems are built with the idea that they can and should retain and assimilate information. This is incredibly useful in many ways, but it also has the potential to assemble more information than anyone realizes about individuals’ habits and behavior patterns. It is imperative that property managers inspect and monitor their clients’ different AI systems, even if residents have formally agreed to their use (and this is extremely important, also) to ensure that the system itself is insulated against hacks and information theft and that the system is maintaining anonymity among users.
While the ability to identify and track trends in a development or a portfolio is vitally important, it is also important to proactively protect the privacy of clients, property managers, and residents. One of the greatest challenges regulators and policymakers will face is protecting privacy and anonymity while still leveraging the advantages of technology and mass analysis. Throughout the process, NARPM will work to provide insight and advocate for property managers.
Learn more about how NARPM works hard to make sure property management companies and the real estate industry have a strong advocate in policy at NARPM.org.
