Trump’s executive order unlikely to slow adoption of AI in real estate

President Donald Trump on Tuesday signed an executive order calling for creation of a voluntary review framework for the nation’s most advanced artificial intelligence (AI) models before public release.

It also directs federal agencies to expand AI-powered cybersecurity programs and establish a new government-industry clearinghouse for software vulnerabilities.

“Advanced AI capabilities make our Nation stronger, but also introduce new national security considerations that require coordinated action across executive departments and agencies and components,” Trump wrote in the order. “As these capabilities evolve, my Administration will continue to work closely with industry to ensure that the best and most secure technology is deployed rapidly to confront any and all threats to our country.”

The order signals that Washington intends to play a larger role in AI oversight and real estate professionals will be looking to gain solid footing under the new paradigm.

Carrie Lysenko — chief technology officer at eXp Realty — said the order is unlikely to significantly disrupt AI innovation in housing despite closer examination of advanced models.

“The intent by the administration is admirable; assess the most powerful AI systems for national security risks before public release,” Lysenko said. “The challenge is execution. This is a voluntary program with no mandatory pre-clearance and no binding consequences for companies that choose not to participate.

“The largest AI labs and companies will remain largely in control of their own timelines and their own definitions of ‘safe’ and ‘safeguards’.”

Voluntary framework limits impact

Under the voluntary review framework, companies may provide federal officials with access to certain “frontier” AI models for up to 30 days before public release. The administration said it intends to use that period to evaluate cybersecurity risks and coordinate with trusted partners involved in protecting critical infrastructure.

The order specifically states that the process does not create a mandatory licensing, permitting or pre-clearance system for AI developers.

Because most AI applications used throughout the housing sector are built on foundation models developed by a small group of major technology companies, Lysenko said the practical impact on agents, brokers and lenders is likely to be limited.

“For real estate, we do not expect a material slowdown,” she said. “The tools agents and consumers largely rely on in the space are built on foundation models from companies like Anthropic, OpenAI and Google. While we are likely to see participation from these major players, none of them are expected to significantly wait on a federal review cycle to ship products. The signal from Washington is still very pro-innovation, not restrictive.

“In practical terms, I don’t believe there will be significant delays. The 30-day voluntary review applies to frontier foundation models, not to the applications built on top of them. Proptech companies and brokerage platforms are largely not in scope here.”

Still, she said uncertainty could emerge if the federal government raises concerns about a major model that serves as the foundation for numerous downstream products.

“Products built on that model could see unexpected delay or there could be negative consumer sentiments or changing behaviors as we have seen in favor of one model over another,” said Lysenko. “There is currently no clear playbook for what happens if the government deems a model to present unacceptable risk. That ambiguity is the gap worth watching.”

Cybersecurity and integrations

New cybersecurity provisions in the order could be particularly relevant to the housing finance sector — with cyberattacks and scams targeting financial institutions, title companies and real estate transactions becoming increasingly sophisticated.

“As the executive order’s cybersecurity infrastructure is designed, it is primarily there to protect government systems, not explicitly private-sector data,” Lysenko said. “Brokerages or Realtors should not assume that these measures extend to oversee the protection of their client records or transaction files.”

She identified areas of concern that real estate firms should prioritize regardless of federal action.

“The three risks that matter most for real estate operators right now; data exposure through third-party AI integrations, AI-generated social engineering like wire fraud and phishing and a potential over-reliance on AI outputs without human verification,” said Lysenko. “Brokerages need to treat AI cybersecurity as an operational risk management problem, not a compliance checkbox.

“Vet your vendors, control data access and provide training on how these tools actually work to limit the risk.”

Broader federal AI strategy

The order represents the latest step in the Trump administration’s evolving approach to artificial intelligence policy.

On his first day back in office in January 2025, Trump revoked former President Joe Biden’s 2023 executive order on AI — arguing that its reporting requirements and safety provisions imposed unnecessary burdens on innovation.

Trump and congressional Republicans have also moved to create a more uniform national approach to AI governance and have criticized the emergence of a patchwork of state-level AI regulations.

Lysenko said that broader trend could ultimately matter more to real estate than the newest executive order itself.

“The executive order does not directly regulate how brokerages use AI,” she said. “The equity concern here is more indirect; the AI labs best positioned to absorb voluntary federal review are the largest ones with legal teams and government affairs infrastructure. Over time, that is likely to concentrate the AI market further among a small number of providers — limiting choice for specialized or smaller proptech solutions.”

She added that larger brokerages may be better positioned to adapt.

“For independent agents and small teams, the broader pattern is the real risk,” said Lysenko. “As AI governance becomes more complex, firms with dedicated technology leadership will navigate it better than those without. That is exactly why the cloud-based brokerage model matters.

“When eXp makes AI governance decisions and vets vendors, those decisions scale across tens of thousands of agents globally. Our agents get enterprise-level oversight without necessarily building it themselves.”

Preparing for what comes next

Although the executive order does not impose direct AI compliance obligations on real estate professionals, Lysenko said brokers and agents should remain vigilant.

“The most important steps brokers and agents can take right now start with documenting which AI tools you are using and what data those tools can access,” she said. “Establish clear human-in-the-loop policies for workflows, business processes and definitely client interactions. Invest in agent AI literacy and training where possible, because the biggest compliance risk is potentially using AI without understanding its limitations or integrations.

“Large brokerages are in a strong position to build vendor relationships with robust governance terms. On the local level, agents can stay close to their state associations, because state-level action on real estate AI could move faster and with more direct impact than anything at the federal level.”