NJ Guidance on Algorithmic Discrimination (2025) - View the Full Document HereThe New Jersey Office of the Attorney General and Division on Civil Rights (DCR) issued new guidance explaining how the New Jersey Law Against Discrimination (LAD) applies to the use of artificial intelligence (AI) and automated tools.
Key Takeaways
1. AI use is subject to existing anti-discrimination law
The LAD already prohibits discrimination caused by algorithms, just as it does for human decision-making.
2. Applies to housing and real estate practices
This guidance is especially relevant to REALTORS®, as it applies to:
-
Housing advertisements
-
Tenant screening
-
Mortgage or lending-related decisions
-
Property recommendations or showings
3. No new law, but clear expectations
The guidance does not create new rules, but clarifies that existing laws fully apply to AI and automated tools.
4. You can be liable, even if you didn’t create the tool
Real estate professionals and brokerages may be held responsible for discriminatory outcomes even when using third-party platforms or software.
5. Discrimination can occur without intent
AI tools may unintentionally create bias through:
-
Biased data used in training
-
Flawed design or assumptions
-
How the tool is applied in practice
6. Types of violations include:
-
Disparate treatment (intentional discrimination)
-
Disparate impact (policies that disproportionately harm protected groups)
-
Failure to provide reasonable accommodations
7. Protected classes still apply
AI-related decisions cannot discriminate based on protected characteristics such as race, religion, sex, disability, sexual orientation, and more.
What This Means for REALTORS®
-
Review any AI or automated tools used in your business (CRM systems, lead scoring, marketing tools, screening software).
-
Ensure tools are not producing biased or exclusionary outcomes.
-
Do not rely solely on technology, human oversight is critical.
-
Work with vendors who prioritize fair housing compliance.
Bottom Line
Technology does not excuse discrimination.
If an AI tool leads to a discriminatory outcome in housing, it may still violate New Jersey law, and you can be held accountable.
View the Full Document Here
