When Christopher Mac Farlane was apartment hunting in Hoboken, N. J., this summer, he got excited about a listing on Zillow. Natural light poured through the windows, giving the apartment a warm glow.

The rooms appeared spacious and tastefully decorated. When he arrived, the reality was starkly different. The apartment was cramped, dim, and misrepresented by AI-generated images.

This is becoming a widespread issue as real estate listings are increasingly edited with artificial intelligence, adding fake fireplaces, improving views, and creating virtual landscaping. The practice has raised false advertising concerns, prompting some states and cities to consider legislation. California and Wisconsin have already passed laws requiring disclosure of AI use in listings.

Zillow, the country's largest real estate portal, recently warned that AI had made modified listing photos faster to produce, harder to spot, and more widespread. The company supports clear disclosure when AI is used to materially alter a listing image.