AB-723 and the Future of AI in California Real Estate Media (What Changes in 2026)

AB-723 and the Future of AI in California Real Estate Media (What Changes in 2026)



Artificial intelligence is rapidly reshaping real estate marketing, from image enhancement to video creation. As these tools have become more powerful, California regulators stepped in to draw clearer lines between helpful enhancement and misleading representation.

One of the most important developments is Assembly Bill 723 (AB-723), which will affect how AI-assisted images and video can be used in real estate advertising beginning in 2026.

Here’s what real estate professionals need to understand.

Why AB-723 Exists

At its core, AB-723 is a consumer protection measure. The law is designed to prevent AI-generated or AI-altered media from misleading buyers or renters about the physical characteristics of a real property.

As AI tools make it easier to fabricate interiors, alter exteriors, or create realistic but fictional visuals, regulators want to ensure that real estate advertising remains truthful and transparent.

What Will Likely Be Restricted

Under AB-723, real estate media that materially alters the appearance of a real, identifiable property may be considered misleading if it is not clearly disclosed.

This includes:

  • AI-generated interiors or exteriors that do not exist

  • “Virtual renovations” presented as current conditions

  • Altered views, finishes, layouts, or surroundings

  • Generative video that portrays a property differently than reality

In short: if AI changes what a buyer or tenant would actually see in person, that content must be clearly disclosed, and in some cases may still not be permitted at all.

What Will Still Be Acceptable

Importantly, AB-723 does not prohibit the use of AI in real estate media altogether.

Acceptable uses generally include:

  • AI used for technical enhancement (color correction, stabilization, lighting balance)

  • Animated still images of the actual property without altering features

  • Clearly labeled AI staging or conceptual renderings

  • Illustrative or demo content not presented as the real property

  • Any AI-assisted media with clear, plain-language disclosure

The key distinction is whether AI is enhancing clarity or fabricating reality.

What This Means for Real Estate Marketing Going Forward

As AI becomes more common, compliance will become a differentiator.

Property owners, brokers, and managers will increasingly need to work with media professionals who understand both:

  • What AI can do, and

  • What the law allows them to do

Transparent, compliant media doesn’t just reduce legal risk, it also builds trust with buyers and renters who are increasingly skeptical of overly polished listings.

A Practical Rule of Thumb

If an AI-enhanced image or video could cause someone to misunderstand the true condition, layout, or features of a property, then it needs disclosure or it shouldn’t be used.

Clear representation always wins in the long run. As regulations evolve, real estate media will continue to change. What will remain constant will be accuracy, transparency, and trust.

Visit TSZ Enterprises for more information about getting your next AB-723 compliant apartment unit listing or property for sale listing video created.

www.traviszeiler.com/consulting/real-estate

Disclaimer

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Information on this site does not create a professional-client relationship between you and TSZ Enterprises. If you require personalized guidance, please seek the services of a qualified professional in the relevant field.

All use of the blog’s information is entirely at your own risk. TSZ Enterprises expressly disclaims any liability for any damages or losses resulting from your reliance on the content provided here or on third-party links. While we aim to keep content current, we make no guarantee of completeness or accuracy.


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