{"id":639443,"date":"2024-08-11T00:00:00","date_gmt":"2024-08-11T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/08\/11\/ais-latest-victim-the-real-estate-market\/"},"modified":"2024-08-11T00:00:00","modified_gmt":"2024-08-11T00:00:00","slug":"ais-latest-victim-the-real-estate-market","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/08\/11\/ais-latest-victim-the-real-estate-market\/","title":{"rendered":"AI\u2019s latest victim: the real estate market"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>The Price is (not) Right:<\/strong> <a target=\"_blank\" href=\"https:\/\/www.realpage.com\/\" style=\"\" rel=\"noopener\">RealPage<\/a> claims to be a tool used to set profitable prices for real estate properties, but the lawsuits against the company accuse it of using AI to enable price-fixing, an issue that, according to the <a target=\"_blank\" href=\"https:\/\/www.theatlantic.com\/ideas\/archive\/2024\/08\/ai-price-algorithms-realpage\/679405\/\" style=\"\" rel=\"noopener\">Atlantic<\/a>, is ripping through an increasing number of industries, and which existing laws don\u2019t have the power to stop.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Price-fixing is highly illegal.<\/strong> The practice traditionally involves executives from different companies in the same industry \u2014 even rivals \u2014 cooperating to inflate their prices. Lawmakers call this system a corruption of the freemarket economy, punishable by a maximum of ten years in prison as well as a USD 100 mn fine.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>How does AI factor into this?<\/strong> The property management software provides a loophole by letting the algorithm do the dirty work for them. If one landlord raises their prices, the AI will raise the average price for all landlords. If enough of them do so, the prices will inflate without industry players having to collude directly.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Lawsuits against RealPage claim that the landlords are willing collaborators,<\/strong> evidenced in their sharing of sensitive information related to their properties, which, according to former antitrust attorney Maurice Stucke at the US Department of Justice, they \u201ctypically go to great lengths to protect.\u201d This is atypical behavior in the industry, supporting the accusation that the software clients are willingly encouraging this breach of etiquette.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Abide or be gone. <\/strong>Other lawsuits claim that the platform pressures those who initially refuse to participate into complying with pricing suggestions. Former employees claim that clients are threatened with being kicked off the platform should they reject pricing suggestions. \u201cEnforced compliance is [a] hallmark feature of any cartel,\u201d said Lee Hepner, antitrust lawyer at an anti-monopoly organization.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>A dangerous precedent:<\/strong> Though RealPage\u2019s motion to have the case dismissed was rejected, the significant challenge of getting traditional antitrust laws to penalize algorithm-driven practices has been put into sharp relief. If RealPage comes out on top, the case could pave the way for more AI-abetted collusion with claims of plausible deniability.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<hr style=\"height:2px;border-width:0;color:gray;background-color:gray\">\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Another multi-bn USD industry feeling the downsides of AI is scientific publishing.<\/strong> The field, built on foundations of credibility, has been rocked by several AI-fuelled scandals that have revealed vulnerabilities in the industry, <a target=\"_blank\" href=\"https:\/\/phys.org\/news\/2024-08-junk-ai-scientific-publishing.html\" style=\"\" rel=\"noopener\">Phys Org<\/a> reports. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>AI\u2019s infiltration has led to the publication of the telltale \u201cCertainly, here is a possible <\/strong><strong>introduction for your topic,\u201d<\/strong> as well as generated images with incorrect anatomical depictions. While experts concede that AI tools can be helpful, they emphasize that they need to be heavily scrutinized and regulated to avoid the spread of misinformation.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Not only has this revealed cracks in the work ethic of researchers submitting their work,<\/strong> possibly fueled by \u201cpublish or perish\u201d culture, but also in the operations of peer-reviewed journals that allowed these bizarre fabrications to be published. Experts are tracking a sharp rise in AI involvement in research, with over <a target=\"_blank\" href=\"https:\/\/www.nature.com\/articles\/d41586-024-01051-2\" style=\"\" rel=\"noopener\">60k papers flagged in 2023<\/a> and more than 13k papers retracted, with projections for significant increases in 2024. Major publishers hit hard by these challenges have introduced <a target=\"_blank\" href=\"https:\/\/newsroom.wiley.com\/press-releases\/press-release-details\/2024\/Wiley-announces-pilot-of-new-AI-powered-Papermill-Detection-service\/default.aspx\" style=\"\" rel=\"noopener\">AI-powered detection services<\/a> to combat the problem.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Technological price-fixing is putting the freemarket at risk<\/p>\n","protected":false},"author":1,"featured_media":639444,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7215],"tags":[7094,633,638],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-639443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-your-commute","tag-ai","tag-enterprisepm","tag-for-your-commute","wpautop","entry"],"acf":{"mongo_id":"e44566a9-12b2-4a9b-8207-90bcbd7e3ae0","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/8\/860.jpg","photo_position":"below","homepage_title":"","full_issue_title":"","related_issue":[639438],"teaser":"Technological price-fixing is putting the freemarket at risk","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/8\/.3302595d-c4c3-47ec-beef-d42c5f7d37ad.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>AI\u2019s latest victim: the real estate market - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2024\/08\/11\/ais-latest-victim-the-real-estate-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AI\u2019s latest victim: the real estate market\" \/>\n<meta property=\"og:description\" content=\"Technological price-fixing is putting the freemarket at risk\" \/>\n<meta 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Frank\u2026","rel":"","context":"In &quot;FOR YOUR COMMUTE&quot;","block_context":{"text":"FOR YOUR COMMUTE","link":"https:\/\/enterpriseam.com\/egypt\/category\/for-your-commute\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/11\/758.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":569160,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/16\/egypt-hedged-against-rising-oil-prices-this-year-maait-confirms\/","url_meta":{"origin":639443,"position":4},"title":"Egypt hedged against rising oil prices this year, Maait confirms","author":"enterpriseam admin","date":"16 February 2020","format":false,"excerpt":"Egypt hedged against rising oil prices this year, Maait confirms: Egypt took out hedging contracts to guard against rising oil prices during the current fiscal year, Finance Minister Mohamed Maait confirmed in an interview with Bloomberg. The government hedged \u201cseveral times\u201d this year and \u201cwill hedge again during the year\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/2\/202.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":555266,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/08\/last-nights-talk-shows-real-estate-prices-on-the-rise-cpa-doesnt-like-car-salesmen\/","url_meta":{"origin":639443,"position":5},"title":"Last Night\u2019s Talk Shows: Real estate prices on the rise + CPA doesn\u2019t like car salesmen","author":"enterpriseam admin","date":"8 November 2021","format":false,"excerpt":"Is new-build real estate about to get even more expensive? Property developers could hike house prices by 10-15% due to the rising cost of raw materials, Tarek Shoukry, head of the Real Estate Development Chamber at the Federation of Egyptian Industries (FEI), told El Hekaya\u2019s Amr Adib (watch, runtime: 12:58).\u2026","rel":"","context":"In &quot;LAST NIGHT\u2019S TALK SHOWS&quot;","block_context":{"text":"LAST NIGHT\u2019S TALK SHOWS","link":"https:\/\/enterpriseam.com\/egypt\/category\/last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/639443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=639443"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/639443\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/afternoon\/639438"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/639444"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=639443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=639443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=639443"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=639443"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=639443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}