Arlington, VA — The American Consumer Institute (ACI), a nonprofit organization dedicated to advocating for consumer rights, has issued a formal letter to the San Francisco Board of Supervisors expressing strong opposition to File Number 240766, a proposed ordinance that would ban the use of Artificial Intelligence (AI) in rental pricing decisions. ACI argues that this proposal will not address the root causes of high rent prices in the city and will instead stifle innovation and consumer welfare.
Key Takeaways:
- AI Benefits Consumers: AI technology enhances business efficiency and consumer welfare by helping to set rental prices that reflect market realities. Banning AI in this context could harm both renters and the broader housing market.
- Misplaced Blame: The rise in rent prices is driven by complex market factors such as inflation, interest rates, and supply-demand dynamics—not AI algorithms. Scapegoating technology for broader market issues is misguided.
- Focus on Real Solutions: ACI urges the Board to collaborate with the private sector to address the true barriers to housing affordability, such as exclusionary land use requirements, high building fees, and burdensome regulations that limit the construction of high-density housing.
The American Consumer Institute calls on the San Francisco Board of Supervisors to reject File Number 240766 and instead pursue meaningful reforms that address the structural issues contributing to high rent prices. Working together with the private sector to build more housing, reduce regulatory burdens, and promote innovation will yield better outcomes for all San Francisco residents.
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