Pennsylvania Settles with Property Manager Over AI Tool's Maintenance Delays
Pennsylvania announced a $45,000 settlement with property management company Home365 over the firm's failure to address tenants' maintenance needs due to its use of an AI system, which performed poorly. Maintenance delays and the resulting unsafe housing were found to be a violation of the state’s Unfair Trade Practices and Consumer Protection Law, the AG said.
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“As artificial intelligence finds its way into many aspects of modern society, it is imperative that those choosing to use this new technology ensure it is working effectively,” Sunday said. “This company left many tenants waiting for fixes to water and sewage leaks and structural flaws, and failed to return security deposits to others. This outcome is another demonstration of my office fulfilling its core mission to protect consumers.”
Of the $45,000 settlement that the state's Attorney General Dave Sunday (R) announced Tuesday, $30,000 will go to consumer restitution and the remaining $15,000 is for costs. Additional consumers have 90 days to file complaints with the Bureau of Consumer Protection to receive restitution.
In addition to the monetary aspect of the settlement, Home365 must ensure compliance with current law and make sure the properties it rents are in a safe and habitable condition, the settlement said.