A 9028: Requires real estate brokers and online housing platforms using virtual agents and AI tools to conduct a disparate impact analysis to assess the actual impact of any such virtual agent; requires such individuals to submit a summary of the most recent disparate impact analysis to the attorney general's office; requires online housing platforms using virtual agents to provide an option to communicate with a human representative; makes certain provisions requiring anti-discriminatory measures for virtual agents and AI tools.

  
  STATE OF NEW YORK ________________________________________________________________________ 9028 2025-2026 Regular Sessions  IN ASSEMBLY September 5, 2025 ___________ Introduced by M. of A. ROSENTHAL -- read once and referred to the Committee on Judiciary AN ACT to amend the real property law, in relation to the use of virtual agents and AI tools in property searches The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 440 of the real property law is amended by adding 2 four new subdivisions 7, 8, 9 and 10 to read as follows: 3 7. "Virtual agent" means an autonomous computational system that 4 utilizes artificial intelligence or similar algorithmic systems to 5 interact with users seeking properties for sale or rental properties to 6 facilitate their search, including but not limited to answering ques- 7 tions, acting as chatbots, providing property information, offering 8 recommendations, guiding users through properties via audio and visual 9 experiences including virtual tours and narrated walkthroughs, schedul- 10 ing viewings, and assisting with rental housing applications. 11 8. "Artificial intelligence tools" or "AI tools" means an autonomous 12 computational system that uses artificial intelligence or similar algo- 13 rithmic systems to provide functions for an online housing platform, 14 other than acting as a virtual agent, including but not limited to, 15 captioning services and displaying housing-related advertisements to 16 users of such online housing platform. 17 9. "Disparate impact analysis" means an impartial evaluation conducted 18 by an independent auditor. Such disparate impact analysis shall include, 19 but not be limited to, testing of the extent to which use of an auto- 20 mated decision tool is likely to result in an adverse impact to the 21 detriment of any group on the basis of sex, race, ethnicity, or other 22 protected class under this article. A disparate impact analysis 23 conducted for a virtual agent shall analyze (i) whether such virtual 24 agent's actual or predicted output differs based on one or more of an 25 individual user's characteristics protected by the human rights law EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11157-06-5 
 A. 9028 2 1 under article fifteen of the executive law, (ii) whether such differen- 2 tiation is necessary to achieve one or more substantial, legitimate, and 3 nondiscriminatory interests, and (iii) whether such interests could not 4 be served by another practice that has a less discriminatory effect. 5 10. "Online housing platform" shall mean any website, application, or 6 digital service that facilitates the advertisement and/or listing of 7 housing accommodations for rent and/or sale within the state. 8 § 2. The real property law is amended by adding a new section 442-m to 9 read as follows: 10 § 442-m. Virtual agents and AI tools in property searches. 1. No less 11 than annually, any real estate broker or online housing platform that 12 uses virtual agents to assist with searches for available properties for 13 sale or rental properties, and any online housing platform that uses AI 14 tools, shall have a disparate impact analysis conducted and shall submit 15 a summary of the most recent disparate impact analysis to the attorney 16 general's office. 17 2. Any real estate broker or online housing platform that offers or 18 uses virtual agents or AI tools shall: 19 (a) proactively identify discriminatory algorithmic results and modify 20 such virtual agents or AI tools to adopt less discriminatory alterna- 21 tives, including but not limited to, assessing data used to train such 22 virtual agents or AI tools and verifying that use of such data does not 23 predict discriminatory outcomes; 24 (b) ensure that the artificial intelligence or other computational or 25 algorithmic systems upon which such virtual agents or AI tools are 26 structured are similarly predictive across groups on the basis of sex, 27 race, ethnicity or other protected classes, and make adjustments to 28 correct any identified disparities in predictiveness for any such 29 groups; and 30 (c) conduct regular end-to-end testing of advertising, captioning, and 31 chatbot systems to ensure that any discriminatory outcomes are detected, 32 including but not limited to, comparing the delivery of advertisements 33 across different demographic audiences. 34 3. Any real estate broker or online housing platform that uses AI 35 tools shall: 36 (a) ensure that housing-related advertisements or captioning are 37 conducted in separate generative processes and have a specialized inter- 38 face designed to avoid discrimination in audience selection and/or 39 advertisement delivery; 40 (b) avoid providing targeted options for housing-related advertise- 41 ments or captioning that directly describes or relates to character- 42 istics protected under New York state law relating to housing, or any 43 substantially similar characteristics, individually or in combination; 44 (c) ensure that delivery of advertisements and captioning systems do 45 not result in differential charges to customers across groups on the 46 basis of sex, race, ethnicity or other protected classes, or charge more 47 to advertisers to deliver advertisements that are compliant with this 48 paragraph; and 49 (d) document, retain, and provide public-facing reporting on such real 50 estate broker's or online housing platform's website, information on 51 compliance with this subdivision, and any internal auditing methods used 52 for such compliance. 53 § 3. This act shall take effect immediately.