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Landlords across the US have used AI-powered pricing algorithms, such as those from RealPage and Yardi, to coordinate rent increases, inflating prices and reducing competition. This practice has led to widespread financial harm for renters. Senator Richard Blumenthal is sponsoring legislation to ban algorithmic collusion and protect tenants from such predatory AI-driven practices.[AI generated]
Why's our monitor labelling this an incident or hazard?
The software described is an AI system that automatically sets rent prices, effectively enabling collusion among landlords without direct communication. This use of AI leads to harm to communities by inflating rents and causing tenant displacement, which fits the definition of an AI Incident due to violation of economic fairness and harm to communities. The event involves the use of AI systems causing direct harm, not just a potential risk, and thus qualifies as an AI Incident.[AI generated]