The Department of Housing and Urban Development today released new guidance warning that the use of artificial intelligence in tenant screenings and housing advertising could result in unlawful discrimination. The guidance was issued in response to a 2023 executive order by President Biden directing federal agencies to examine the use of AI across multiple industries.
In its guidance for advertising in housing, housing credit and other real estate-related transactions, HUD said that new technologies “can be used to target advertising toward some consumers and away from others.” That targeting may be deliberate, or it could be a consequence of using systems that automate decisions about which groups of individuals to advertise certain products. “Such targeting and delivery, which may be permissible in other contexts, risks violating the [Fair Housing Act] when used for housing-related ads,” the guidance states.
Advertisers should use ad platforms that take steps to manage the risk of discriminatory delivery of housing-related ads, the guidance states. They should also carefully consider the source and composition of audience datasets, and make use of tools provided by the platform to evaluate the projected demographics of a targeted audience. At the same time, ad platforms should ensure that housing-related ads avoid discrimination in audience selection and ad delivery, and they should avoid providing targeted options for delivering ads in a manner prohibited by the Fair Housing Act.
