While watching what types of artificial intelligence technology are in the CRE and general software in use at a CRE company, executives should pay attention to what might affect how the systems have an impact on operations.

There are technical limitations that can result from large language model hallucination (when AI makes things up), machine learning with a bad choice of training data, dependence on third-party data sets, and more. However, that is only part of what needs watching. Another big part is legislation.

There are federal attempts at regulating AI but put even that to the side for a moment and consider state legislation. Multiple organizations are tracking what the states are doing. Some law firms like BCLP and Husch Blackwell seem to have the most inclusive counts at the moment.