Senators Investigate RealPage's Role in AI Regulation Ban

Democratic senators are scrutinizing RealPage, a software company known for its rent-setting algorithms, over its possible role in pushing a controversial 10-year ban on state-level AI regulations. This provision, attached to a Republican budget reconciliation bill, would prevent states from enacting laws that regulate AI or automated decision systems, potentially shielding RealPage’s algorithmic practices from oversight.

RealPage’s algorithm has been accused of enabling landlords to coordinate rent increases, contributing to rising housing costs nationwide. A 2022 ProPublica report linked the company’s software to escalating rents, and both the Department of Justice and multiple states have filed lawsuits alleging anti-competitive practices that harm renters.

Several cities and states have introduced or passed legislation to ban or regulate rent-setting software like RealPage’s. However, the proposed federal ban on state AI regulation could nullify these efforts, effectively giving companies like RealPage a free pass to continue using automated systems without state oversight.

The senators, including Elizabeth Warren and Bernie Sanders, have formally requested detailed information from RealPage about its lobbying activities since 2020, especially related to AI legislation. They are probing how the company’s lobbying may have influenced the inclusion of the AI regulation ban in the budget bill and how this would financially benefit RealPage.

This investigation highlights a broader concern about how AI regulations—or the lack thereof—can impact consumer protections and market competition. The proposed ban not only affects rent-setting algorithms but could also hinder state-level oversight of AI in areas like hiring, facial recognition, and criminal justice.

As lawmakers weigh the implications of this legislation, the RealPage case serves as a cautionary tale about the intersection of AI, corporate influence, and regulatory frameworks. It raises critical questions about who benefits when states are barred from regulating emerging technologies that directly affect consumers’ lives.