SAN JOSE, Calif. ( KRON ) — Several weeks after San Francisco became the first US city to ban AI-powered rent-fixing technology , which later led to a federal investigation , its neighbors in the South Bay are now attempting to follow suit.
On Wednesday, San Jose City Council member Peter Ortiz proposed a “groundbreaking” memo to the Rules Committee, calling for a ban on apps that facilitate price fixing in the housing market through artificial intelligence.
“Artificial intelligence should be a tool for innovation and progress, not for creating monopolistic practices that drive up housing costs,” Ortiz said. “Our goal is to protect renters in San Jose from unfair pricing strategies and ensure a competitive and transparent rental market.”
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For rent signs dispersed across San Jose. Photo Courtesy: KRON4’s Rudy Gracia -
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According to the San Francisco Board of Supervisors, the first to ban the software, AI technology “enables price collusion among large corporate landlords for the purpose of rent-gouging.” By having access to a large landlord data set, the technology maximizes the possible rent hike based on local conditions.