The Flip Side To AI - For Zillow And Eyebobs, In $ - DailyAlts -
2021-11-12
DailyAlts
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Zillow's reliance on its AI-powered Zestimate system for home valuation in its iBuyer program led to significant financial losses and the shutdown of its home-flipping business. The AI failed to accurately assess property values and market volatility, resulting in overpayment for homes and harm to the company's finances and reputation in the US real estate market.[AI generated]
Why's our monitor labelling this an incident or hazard?
The Zillow case involves the use of an AI system (Zestimate) whose outputs led to significant financial harm due to overvaluation and inability to detect physical defects, which is a direct harm to property and financial interests. The Eyebobs case involves AI software that failed to provide legally required accessibility, resulting in a violation of rights under the ADA, a breach of legal obligations protecting fundamental rights. Both represent realized harms directly linked to AI system use and malfunction. Therefore, these qualify as AI Incidents.[AI generated]