Zillow’s announcement last week that it had built an app integration with OpenAI’s ChatGPT sent the real estate industry into a tizzy.
While many were excited that the real estate industry was working to embrace how many consumers are now searching the internet, others claimed that the app integration violates MLSs’ IDX policy rules. Either way, Zillow has opened up a conversation on how MLS policies may need to evolve based on technological advancement.
It all started with Zillow’s ChatGPT announcement
After announcing the integration, Zillow clarified that the listing information presented to consumers via the Zillow application on ChatGPT’s platform will be attributed to the listing agent and MLS, and that the application adheres to MLS rules and policies.
In an episode of Real Estate Insiders Unfiltered published earlier this week, Errol Samuelson, Zillow’s chief industry development officer, discussed how the firm worked to ensure they were respecting MLS policies and data privacy concerns.
Samuelson said Zillow began by consulting the team that built its IDX displays to ensure the new ChatGPT app followed the same rules and protected MLS data. “We then worked with our legal team to get their input because they worked on all of these IDX agreements. We actually have a couple of people in the company who used to run MLSs, so we spoke with them as well to make sure we got this right.”
Samuelson also noted that they also worked with a group of MLS attorneys from across the county to go through the application and the integration to make sure everything was in the clear. Josh Weisberg, Zillow’s senior vice president of AI, who was also a guest on the podcast, added that before they even began the project, they made it clear to OpenAI that the only way this would work is if they did not use any of the data to train their models.
“We said that not all of this data is ours, it’s MLS data so we have to provide attribution and they said ok, and we also told them that it has to be fair housing compliant, and we helped them with that,” Weisberg said.
MLS leaders review license agreements
Despite these reassurances, some MLS leaders say they are looking into things to ensure compliance.
“Stellar MLS is aware of the situation involving Zillow and OpenAI’s (ChatGPT) integration. Protecting the security, accuracy and integrity of MLS data is a priority for Stellar MLS,” Merri Jo Cowen, Stellar MLS’ CEO, wrote in an emailed statement. “We are currently working with legal counsel to determine if there is a violation of our license agreement. Once a determination has been made, we will take appropriate action if needed. ”
The bigger conversation on tech evolution
Regardless of the compliance issue, many feel this app integration between Zillow and ChatGPT creates an opening for a broader conversation about technology evolution and MLS policy.
“People, myself included, are more frequently going to ChatGPT instead of Google to direct them to websites, so integrating with these AI models is smart,” Saul Klein, the CEO of San Diego MLS, told HousingWire last week. “Technology has evolved so much since the IDX rules were written two decades ago, and maybe this is the time to create a conversation about that.”
The Council of MLSs (CMLS) agrees and is encouraging the industry to engage in these discussions.
“CMLS recognizes that IDX policy was written in a different era, long before artificial intelligence shaped how consumers interact with information. With AI now integrated into real estate tools and consumer-facing platforms — like Zillow working with ChatGPT — it’s appropriate that MLSs are asking how existing rules apply. Engaging in a robust discussion around these questions is not only prudent; it is necessary,” a spokesperson wrote in an email. “MLSs should be prepared to consider how new technologies intersect with their agreements and what best serves their marketplace.”
At Bright MLS, Brian Schneider, the MLS’s legal counsel and a partner at ArentFoxSchiff, said they are working to read the pulse of what’s available technologically and anticipate consumer behaviors and further advancements.
“It seems very likely that some day folks are going to start their home search in AI tools, and we need to look at if the MLS policies of today address that,” Schneider said.
Current policies that are worded well might address concerns
Overall, Schneider said he feels current policies do address potential concerns, but only if worded well.
“I’m familiar enough with what is out there for MLS license agreements to know that there are some that are poorly worded,” Schneider said. “A good example of this is that there are some that don’t provide limitations on derivative works that sites and individuals who are licensed to use the data can create. That raises problems for you if AI starts to create derivative works of your data.” Examples of derivative works could include analyses and new thoughts on its read of the descriptive data.
“If it [AI] is coming up with new ways to describe a home based on the information provided, then that’s a derivative work,” Schneider said.
While Schneider says that most current policies support the current iterations of these technology tools, he knows that this may change in the future.
“The way a lot of MLS rules are drafted, they are pretty constrained as to what you are allowed to do,” Schneider said. “But the ability for ChatGPT to act as an operating system and have other apps pop up and operate on their own within ChatGPT — no one saw that coming a few months ago. So, we are all grappling with whether or not there are current terms that anticipate these changes. We need to anticipate the unanticipated as these new technologies evolve.
