California AB 723 (Real Estate: Digitally Altered Images: Disclosure 2025)

• Authority: California
• Parent authority: State governments
• Jurisdiction: United States
• Collections: U.S. state and local documents
• Most recent activity: Enacted
• Most recent activity date: 2025-10-10

Risk subdomain coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the risk subdomain are explicitly described.

• False or misleading information

Minimal coverage — Brief mention but no specific mitigations, recommendations or governance measures relating to the risk subdomain are described.

• Fraud, scams, and targeted manipulation
• Lack of transparency or interpretability

All other risk subdomains had no coverage in this document.

Risk Coverage Summary

The document has minimal coverage of risk domains, with only subdomain 3.1 (False or misleading information) receiving a coverage score above 1. The legislation specifically addresses the risk of AI-generated misinformation in real estate advertising by requiring disclosure of digitally altered images.

Sector coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the sector are explicitly described.

• Real Estate, Rental & Leasing

All other sectors had no coverage in this document.

Sectors Summary

This legislation specifically governs the Real Estate and Rental and Leasing sector, with a focus on real estate brokers and salespersons who use AI-altered images in property advertisements. The regulation is narrowly targeted at real estate marketing practices.

Legislative Status

Hard Law

Legislative Status Summary

This is a binding California state statute with mandatory disclosure requirements for real estate professionals using AI-altered images, enforceable through the state's existing real estate regulatory framework.

Actors

Proposer

• Entity Types: AI_Governance_Actor
• Entities: California State Legislature; The people of the State of California
• Summary: The document is a California state bill enacted by the state legislature, as indicated by the opening phrase 'The people of the State of California do enact as follows' and the bill designation 'California AB 723'.

Target

• Entity Types: AI_Deployer, AI_User
• Entities: real estate brokers; real estate salespersons; persons acting on behalf of real estate brokers or salespersons
• Summary: The legislation explicitly targets real estate brokers and salespersons who use AI-altered images in advertisements. These actors are deploying and using AI technology (photo editing software or artificial intelligence) in their professional activities.

Enforcer

• Entity Types: AI_Governance_Actor
• Entities: California Department of Real Estate (implied); California state regulatory authorities
• Summary: While not explicitly named, the enforcement authority is implied through the document's placement in the Business and Professions Code Section 10140.8, which governs real estate professionals. Section 2 references potential criminal or infraction penalties, suggesting state enforcement mechanisms.

Monitor

• Entity Types: AI_Governance_Actor
• Entities: California Department of Real Estate (implied); California state regulatory authorities
• Summary: Monitoring responsibilities are implied through the regulatory framework of the Business and Professions Code. The California Department of Real Estate would typically monitor compliance with real estate professional standards and requirements.

AI Lifecycle Stages

Lifecycle stages covered by the documents, as defined in the OECD Framework for the Classification of AI Systems

• Deploy
• Operate and Monitor

AI Lifecycle Summary

The document primarily addresses the Deploy and Operate and Monitor stages of the AI lifecycle, focusing on disclosure requirements when AI-altered images are used in real estate advertisements. It does not cover earlier stages like planning, data collection, or model development.

Technical Scope

Terms relating to technical scope that are mentioned or implicitly referenced in the document

• Generative AI

Technical Scope Summary

The document explicitly mentions artificial intelligence as one method for creating digitally altered images, alongside photo editing software. It does not distinguish between different types of AI models or systems, nor does it reference compute thresholds, foundation models, or other technical AI classifications.