Proptech Australia Launches AI Governance Principles to Boost Transparency and Trust in Real Estate Technology

Proptech Australia – the peak body for the property technology sector - has announced the release of a new set of AI Governance Guidelines and Principles designed to support greater transparency, accountability, and trust between real estate technology providers and their clients. 

The initiative provides a foundational framework of essential questions that all proptechs that use Artificial Intelligence (AI) in any form within their services should be able to answer clearly and openly for their users.

The move comes as the adoption of AI technologies, including Machine Learning, Generative AI, and Agentic AI, accelerates across the property technology sector. More than 75% of entries in the 2025 Proptech Awards featured AI in some form.  

The president of Proptech Australia, Kylie Davis said volunteer guidelines outlining a unified standard for AI governance and communication was a vital first step to safeguarding client interests and creating confidence for adoption. 

"The ethical and transparent use of AI is a non-negotiable for the future of proptech,” Kylie said. 

At the recent Proptech Forum, presenters highlighted the importance of the proptech industry exercising diligence around known hazards of AI, including hallucinations, copyright and intellectual property theft, context rot and workslop. The approach was described as the need for  a ‘glass box’ not a ‘black box’.”

"Our new guidelines are designed to empower the clients of proptechs to help them better understand what they are getting and allow them to make informed decisions,” said Kylie. 

“By setting out some basic questions that every proptech should consider as part of how they explain their AI policies – and that every client should ask - we are helping create a consistent understanding of how AI operates, is governed, and manages client data which will significantly lift the bar for the entire industry."

The guidelines focus on several critical areas: 

• AI Transparency: Providers should clearly disclose the specific type/s of AI being used (e.g., Automation, Machine Learning, Generative AI, Agentic AI) and where these systems are deployed within their platforms.

• AI Governance and Training: Proptechs should be able to explain how their AI is governed internally and provide transparency regarding how AI models are trained and be willing to share this information with clients.

• Risk Mitigation: Details should be provided on the steps implemented to actively reduce common AI risks such as hallucinations, context rot, and workslop. They should also outline a clear process for clients to address and resolve any issues found within the AI system.

• Data Ownership and Security: The guidelines call for proptechs to outline a clear definition of what data is client-owned, the boundaries of data ownership, their protocols for data storage, security and management. Providers must also clarify whether client-specific data will be used to train AI models for the broader competitive market.

• Oversight: Proptechs should disclose any relevant governance authority or regulatory oversight (e.g., APRA) that applies to their operations.

Proptech Australia encourages all members rolling out AI-powered solutions within their platforms to use these principles as a benchmark for clear communication with clients.