Proptech executives and Silicon Valley leaders may be excited about the rapid rise of artificial intelligence. However, the general public may feel completely different.
AI experts and the public are increasingly out of sync about the technology’s trajectory, according to Stanford University’s latest annual AI report released Monday. The findings point to a growing undercurrent of anxiety and dissatisfaction, especially in the United States, about how AI will reshape core parts of everyday life, including jobs, wages, and the economy.
This anxiety is also clear from public opinion data. A recent Gallup poll found that sentiment toward AI has become more negative, and surprisingly, Gen Z is leading the change. Younger respondents reported feeling less hopeful and dissatisfied with technology, even though nearly half said they use AI tools daily or weekly.
For many in the technology industry, the backlash was unexpected.
Much of the conversation among AI leaders has focused on long-term risks such as artificial general intelligence, a hypothetical AI that can match or exceed human cognitive abilities.
But outside that bubble, the public’s concerns about whether AI will reduce incomes, destroy job security, or raise energy costs as power-hungry data centers expand are far more pressing.
As the real estate industry rapidly adopts AI technology, new research and opinion data could have an impact on an industry already grappling with public perception issues around transparency and affordability.
The dark side of AI frustration
This disconnect was particularly evident in the online response to the recent attack on OpenAI CEO Sam Altman’s home. On platforms like X, some AI insiders expressed shock at social media comments that seemed to glorify the incident.
The tone of these reactions echoes earlier moments of online backlash, such as those following the 2024 shooting of the United Healthcare CEO and, more recently, the arson of a Kimberly-Clark warehouse by workers protesting low wages.
A 29-year-old man charged in connection with the fire that destroyed a Kimberly-Clark warehouse in California is said to be driven by anti-capitalist beliefs and likened himself to Luigi Mangione.
Mangione is accused of killing UnitedHealthcare CEO Brian Thompson, who was shot and killed in New York City on December 4, 2024. After a nationwide manhunt, Mangione was arrested in Pennsylvania five days later.
Mangione’s legal defense fund has raised a significant amount of money (reportedly more than $1 million), primarily through crowdfunding platforms such as GiveSendGo. Supporters say the donations are intended to support his legal defense and, in some cases, reflect concerns about the health care system and due process.
In both cases, some of the social media comments against these anti-capitalists drifted beyond criticism into something more flammable, with some posts framing their violent incidents as if justifying them and even calling for more extreme action.
This pattern suggests a dark undercurrent of frustration that extends far beyond AI itself, but is increasingly being projected onto the industry and its leaders.
America is not convinced about the future of AI
A Stanford University report helps explain where growing negative sentiment is coming from by bringing together sentiment data from multiple sources to map the widening gap in awareness about AI.
One data point stands out. A recent Pew Research Center survey found that just 10% of Americans feel more excited than concerned about the expanding role of AI in daily life. In contrast, 56% of AI experts said they expect the technology to have a positive impact on the United States over the next 20 years.
In certain sectors, the rift becomes even more intense. In healthcare, for example, 84% of experts believe that AI will have mostly positive outcomes over the next 20 years. Only 44 percent of the general public agrees.
This gap highlights a fundamental disconnect. While experts tend to focus on the long-term potential, much of the public remains unconvinced about how the benefits will materialize in everyday life.
Impact of AI trust gap on real estate
The trust gulf around AI is already visible in the real estate industry, particularly in the backlash against algorithmic rent-setting tools.
Software platforms like RealPage have been the focus of lawsuits and regulatory scrutiny, with critics arguing that AI-driven pricing models could drive up rents and reduce competition.
For apartment managers, these tools are structured as data-driven optimization. These are increasingly seen as opaque systems that influence house prices in ways that feel unfair to renters and regulators. This gap in awareness has led to lawsuits in cities and states across the country, multimillion-dollar settlements, and even outright bans on certain types of pricing software.
Similar movements are surfacing in other areas of the real estate industry. While policymakers are exploring rules around AI-generated listing content, consumers are becoming increasingly wary of how images, descriptions, and even communications are generated.
Consumer Reports supports California’s AB 2025 bill. The bill would require landlords to clearly disclose when images of rental properties have been significantly altered and provide access to the original, unedited photos.
The proposal comes as more property owners turn to AI to significantly enhance, or in some cases transform, the way their properties are displayed online, and as concerns grow over misleading marketing. If passed, AB 2025 would establish baseline guardrails for the use of AI in listings with the goal of curbing deceptive practices while allowing responsible use of the technology.
There is also noticeable hesitation among landlords and agents using AI tools, with a recognition that the output needs to be checked and that over-reliance can pose risks.
These examples demonstrate that in real estate, an already sensitive market is in some cases becoming a flashpoint for concerns about fairness, transparency and control.
If handled poorly, AI can deepen mistrust.
It’s easy to say that for the real estate industry, implementing AI can be an issue of trust.
As real estate companies and brokers deploy AI across leasing, underwriting, marketing, and real estate operations, many buyers, sellers, renters, and even employees may be increasingly skeptical about how technology will impact their livelihoods and daily lives.
So the winners may not be those with the most advanced AI tools, but those that can clearly communicate value, maintain human touchpoints, and demonstrate tangible short-term benefits.
It also increases reputational risk. In a sector that already faces affordability concerns and public scrutiny, insufficient or overly aggressive adoption of AI could exacerbate existing grievances, especially if it is seen as reducing jobs, increasing rents, and dehumanizing housing.
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