Avoiding Risk When Using AI in Commercial Real Estate

Published: Aug 1, 2025
Topics: Artificial Intelligence
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While AI offers potential for efficiency and insights, it also presents distinct risks. EisnerAmper highlights three key areas to watch out for, including:

Data privacy - Emphasizing the danger of inputting confidential information into public AI tools
Hallucinations and misinformation - Cautioning against AI's ability to generate convincing but false data
Over-automation risks - Advising against fully relinquishing human oversight in critical processes

Learn how to leverage AI responsibly by prioritizing safe practices, validating AI output, and establishing clear guardrails to protect your data and decisions.

Explore EisnerAmper's AI consulting services to help your business navigate the complexities of AI adoption safely and effectively.

Transcript

AI can make your real estate workflows faster and smarter—but it also comes with risk. Here are three things to watch out for, and how to stay protected.

Never paste confidential deal terms, leases, or client info into public AI tools. Those platforms can retain your inputs and potentially expose sensitive data.

Use enterprise versions or internal deployments of AI tools whenever working with proprietary data.

AI can produce polished but completely made-up answers. While these instances happen less frequently as AI increases in capability, the risk still exists. That includes fake property comps, incorrect zoning interpretations, or invented market stats.

Always fact-check AI output. Use it as a draft assistant, not a final authority.

Too much automation, too fast, can introduce errors into financial models, reporting, or investor communication.

Keep humans in the loop. Treat AI like a power tool: useful, but dangerous without oversight.

AI can be transformative for commercial real estate—but only if used responsibly. Focus on safe practices, validate the output, and put clear guardrails in place.