Consumers increasingly wary of AI’s role in homebuying 

Three in four consumers expect artificial intelligence to play a role in some part of the homebuying process — but their trust in the technology has declined, according to a recent study from Cotality. 

Earlier this year, Cotality surveyed prospective and recent homebuyers in the U.S., Canada, the U.K. and Australia about their sentiment toward AI in real estate. While most respondents believe AI is embedded in real estate, especially within property websites, they still want a "human in the loop," with 44% willing to pay someone to verify AI decisions. 

"Buyers are not asking whether AI is involved — they assume it is," John Rogers, chief data and analytics officer at Cotality, said in the report. "The question they are now asking is whether the industry has earned the right to use it in decisions that change lives and finances." 

Younger consumers see more benefits of AI

Millennials and Gen Z respondents were more likely to consider AI an asset during the home search and purchase process. 

Homebuying confidence has declined significantly over the past year, the report noted, but half of the Gen Z respondents said the involvement of AI tools would help them feel more confident about buying, selling or insuring a home — in part, because they expect the technology to speed up the process. 

One area where AI could prove especially efficient is lending, the report noted. AI could reduce loan processing times by one to three months, according to Cotality data, and with more than a third (37%) of originated loans in the U.S. going to borrowers under 35, that efficiency could be a boon for younger potential buyers.

But — trust could be a dealbreaker 

While AI tools may boost confidence for some consumers as they embark on their home search, overall trust in AI to help find a home has fallen considerably, dropping from 30% in 2025 to 16% this year — even as the tech has become nearly ubiquitous. Tolerance for the "learning phase" of AI in real estate is low, with at least 70% of respondents across all age demographics saying they consider AI-produced errors to be unacceptable. 

Perhaps surprisingly, while younger generations are more likely to use AI tools, they are also more willing to pay a human to confirm the accuracy of AI outputs compared to older buyers.

As the technology becomes more embedded, buyers want clear AI-use labels for property listings and mortgage recommendations. More than two-thirds (68%) of all respondents said transparent disclosure of AI involvement is important or essential, and 37% said it should be mandatory — a percentage that jumped to 61% for baby boomers.

In addition, nearly half (46%) of buyers say lenders or insurers shouldn't conduct AI valuations without prior approval, and 64% are worried the technology may "recycle" unverified information. 

US buyers want human support

Globally, nearly half (48%) of buyers think AI is reliable for making lending decisions. In the U.S., however, preference for working with humans has risen.

Domestically, 55% of buyers would prefer working with a person to secure a mortgage, compared to 46% last year. Two-thirds prefer humans over bots for legal assistance, up from 54%. 

More than half (56%) of buyers trust a human's guidance over AI for assessing natural disaster risk, and 44% said they would pay extra for human verification of automated recommendations. 

Earn trust while protecting your business

In the report, Cotality flagged some key takeaways for industry professionals: 

• Flag AI influence in materials

• Explain how AI and real estate interact beyond speed

• Draft clear disclosure and consent language around AI 

• Create strong correction processes and record-keeping including data sources, model outputs, human review and client consent