Market Insights

“Who Told Them to Spend All That Money on Services We Don’t Need?”

By Dennis H. Goodhart, with Hymie, my AI collaborator

By now, I’m sure we have all heard about the hundreds of billions of dollars AI companies are prepared to spend building more powerful systems.[1]

Simple economics says that eventually those investments have to produce a return. That can come from attracting more paying customers, selling higher-priced services, increasing business use, or finding less expensive ways to deliver AI. From the customer’s side, however, the question is much simpler: What am I getting for the additional money?

  • A smarter AI can be worth more if it saves time, improves the quality of my work, or lets me do something I couldn’t reasonably do before.
  • But the real cost includes the time I spend checking, correcting and repeating its work.
  • If AI companies ask customers to pay more, they will have to show what the additional money actually buys.

I Want It Done Right the First Time

I have an AI assistant that can help me research complicated real estate questions, examine competing arguments and write about artificial intelligence. Occasionally, it also needs reminding that we already tried something and it didn’t work. If you’ve ever spent an afternoon following an AI assistant through troubleshooting steps only to find yourself back where you started, you may recognize the experience. At that point, I’m not particularly interested in whether the next generation of AI can give me the same instructions faster. I want it done right the first time. Or, when that isn’t possible, I at least want it to remember what happened an hour ago and use that information to make the next attempt better.

AI can save me hours, days or even weeks on one assignment. On another, it can send me down a rabbit hole that consumes much of the time I thought I had saved. That is why I don’t measure productivity by how quickly AI produces an answer. I count the time until I have something I can actually use. If AI produces a report in five minutes and I spend another hour tracking down unsupported claims, correcting incorrect information or reworking the output because it won’t function with another system I use, the five-minute turnaround tells me very little.

What Would I Pay More For

As a real estate broker, I would pay more for a tool that could pull together the relevant zoning provisions for a property, show me exactly where the information came from and identify what still needs professional confirmation. The same goes for comparable sales. I want enough information to determine whether the properties are actually comparable—not simply because they are nearby or have similar square footage.

The system should also distinguish clearly between what current market data show, what assumptions are being made, what represents a forecast or projection, and what still needs to be independently verified before I advise a client. That could catch something important, save me hours of research and perhaps help move a transaction forward more quickly. That is added value I can understand.

I would also pay for an assistant that gets better at working with me. If we try a particular fix and establish that it doesn’t work, I want the AI to carry that lesson into the next attempt instead of eventually leading me back to the same solution. Researchers are already exploring ways for AI agents to reuse strategies learned from previous successes and failures. Google’s ReasoningBank research is one example.[2] My test is much simpler: Does the next job take fewer tries?

The Customer Gets a Vote

After more than four decades working in technology, I have seen how easily a company’s ideas about growth can get ahead of what its customers actually need, will use and will pay for. There is an old expression in technology: If it ain’t broke, don’t fix it.

That doesn’t mean we should stop improving technology. It means an improvement has to solve a problem somebody actually cares about. Some advances are obviously transformative. Moving from horse-drawn transportation to automobiles changed what people could do. Automatic transmissions made driving easier for millions of people. But not every improvement is transformative.

Is producing a report in ten minutes instead of twenty minutes enough reason for me to pay substantially more? Probably not. Producing that same report in ten minutes and getting it right, so I don’t spend the next two hours reviewing it, correcting errors and deciding whether I can trust it? That is something I would consider paying for.

If an AI company asks me to pay more, the amount it spent building the system gives me very little reason to say yes. I am not buying their data center. I am buying a service.

Some customers will gladly pay more for capabilities they use every day. Others may look at a higher monthly bill, look at a list of impressive new features they rarely use, and ask: Who told them to spend all that money on services we don’t need?

I already receive real value from AI, and I am open to paying more for improvements I can see in my workday. Help me complete a difficult assignment with greater confidence. Give me better information. Help me distinguish fact from projection. Remember what we already tried. Give me back time I can spend working with clients instead of correcting the tool that was supposed to save me time.

Do those things, and I can decide what the improvement is worth. That, ultimately, is the marketplace test: What does it do for the person paying the bill?

Sources

[1] J.P. Morgan Global Research, “What Unprecedented AI Capex Means for Markets and Investors,” October 19, 2026. J.P. Morgan projects approximately $900 billion in global AI capital expenditures in 2026.

[2] Ouyang et al., “ReasoningBank: Scaling Agent Self-Evolving with Reasoning Memory,” September 29, 2025. Research on enabling AI agents to reuse strategies derived from previous successful and failed experiences.

AI for the Perplexed is a collaboration between Dennis H. Goodhart and Hymie, my AI writing collaborator. Dennis retains editorial responsibility for the published content.

Disclaimer: The opinions expressed are those of the author. The author is not employed by, compensated by, sponsored by, or affiliated with any of the companies or products mentioned in this article. The author does have a paid ChatGPT subscription. ChatGPT, referred to here as “Hymie,” is credited as a writing collaborator.

Is AI Safe for Humans? — Part 3

Who’s Watching the Watchdog? How Do We Keep AI Under Control?

AI for the Perplexed
By Dennis H. Goodhart

What Are the Risks, and What Dangers Do They Pose?

In Part 2, we examined what might happen when increasingly powerful AI systems cooperate, compete, or behave in ways nobody intended. We also considered the possibility of humans gradually losing meaningful control. I said I would look next at what we might do to prevent those problems.

The challenge isn’t simply stopping AI after something goes wrong. It’s recognizing potential problems early enough to prevent the damage.

Here’s what we’ll examine:

  • The difference between AI making decisions and an AI agent carrying them out.
  • Safeguards that can detect errors and prevent them from spreading.
  • Early-warning systems and independent oversight.
  • Defenses against AI deliberately designed to cause harm.
  • How to balance safety with the benefits of AI autonomy.

AI vs. AI Agents

AI is the intelligence. An AI agent is a system that uses that intelligence to carry out tasks.

An AI model can analyze information, develop recommendations, and produce answers that weren’t individually programmed in advance. It can also be wrong. An AI agent combines that intelligence with software tools and permissions to perform assigned tasks, sometimes without human approval at every step.

That gives us two different challenges: improving the reliability of AI’s reasoning and controlling what agents can do with its conclusions. For example, my ChatGPT assistant, whom I call Hymie, can research a subject, evaluate alternatives, and recommend actions. But without the necessary tools and permissions, he cannot independently transfer funds, change business records, or operate equipment. An agent connected to those systems might be authorized to do so. Restricting an agent’s actions doesn’t necessarily correct the AI’s reasoning. We need safeguards addressing both.

The First Defense: Checks and Balances

Producing an answer isn’t the same as proving the answer is correct. And completing a task isn’t necessarily the same as accomplishing the intended objective.

Traditional computer systems verify calculations, validate information, and prevent unauthorized transactions. Similar safeguards can help make AI more reliable. For example, an independent review of an AI-generated commercial property valuation could identify calculation errors, missing financial information, or unsupported assumptions. If an agent were authorized to distribute the report, separate controls could require approval before sending it.

Some checks can be automated; others require independent evidence or professional judgment. An AI shouldn’t be the only authority determining whether its own work is correct.

When AI Doesn’t Follow the Rules

Hymie and I established our own checks and balances: identify the objective, examine and present alternatives, verify the procedure, establish checkpoints, and recognize when an approach isn’t working.

Then we attempted to reorganize my Substack newsletters. Hymie repeatedly recommended unverified procedures and, when they failed, proposed more steps instead of reconsidering the approach. Despite repeated reminders and assurances that he understood our rules, he kept reverting to the same behavior.

The result was an administrative project that consumed nearly three days. Was Hymie going rogue? Hardly. He wasn’t pursuing a secret objective or attempting to take control. He was simply failing to follow established instructions.

An AI can understand a rule, explain why it’s important, and still fail to apply it consistently.

In our case, the consequences were wasted time, frustration and delayed publication. But what if similarly unreliable recommendations were accepted by an autonomous agent authorized to execute financial transactions or change critical records? That’s why safeguards need independent enforcement, not simply an AI’s assurance that it will follow them.

A Protective Shell Around AI

One approach worth exploring is an independent supervisory system—a protective shell surrounding an AI application and the agents using it. It could check important conclusions, monitor behavior, recognize repeated failures, and intervene before a potentially harmful action occurs.

For an AI assistant, repeated departures from an agreed procedure could trigger a requirement to stop and reassess the task. For an agent, attempts to exceed permissions or bypass approval requirements could cause an action to be suspended.

Microsoft recently announced Project Perception, involving monitoring and security controls for autonomous AI agents. Its approach includes mechanisms intended to supervise agents and enforce restrictions independently of the underlying AI models.

This is encouraging, but controlling an agent’s actions isn’t the same as ensuring that its AI always reaches correct conclusions. Supervisory systems can also make mistakes, making independent verification and appropriate human oversight essential.

Can One AI Mislead Another?

An AI agent doesn’t have to go rogue to become dangerous. Suppose an agent examining property records encounters instructions disguised as information from a trusted authority. If its underlying AI mistakes those instructions for part of its assignment, the agent could alter its analysis, disclose confidential information, or attempt an unauthorized action.

This is called prompt injection. When it redirects an agent, it can become agent hijacking. The agent’s programming may remain unchanged, but its behavior has been redirected. Defenses must distinguish authorized instructions from untrusted material and enforce restrictions on what an agent can do.

What About AI Deliberately Created to Cause Harm?

So far, we’ve discussed systems developed for legitimate purposes. But what happens when someone deliberately creates or directs AI to disrupt operations, steal information, or cause destruction?

One possible defense is the honeypot, an established cybersecurity technique involving a decoy computer system designed to attract suspicious activity. A related technique, the honeytoken, uses fictitious credentials or files to detect unauthorized access. A hostile AI searching for confidential information might access a monitored decoy, triggering an alert and allowing defenders to intervene. Other defenses include behavioral monitoring, restricted access, blocking suspicious connections, and isolating compromised systems.

Researchers are exploring how these techniques might be adapted to increasingly autonomous AI-powered threats. None offers complete protection. Defenders may be able to stop an attack without being able to shut down the hostile AI operating on someone else’s computers. Stopping an attack isn’t necessarily the same as disabling the attacker.

Balancing AI Autonomy, Safety, and Responsibility

If every autonomous AI action requires human approval, how much of the productivity benefit do we lose? The answer may be to match safeguards to the consequences of a mistake. An agent scheduling an appointment shouldn’t need the same supervision as one transferring money or changing security permissions.

Routine, low-risk actions could proceed within established limits, while higher-risk decisions could require stronger verification or human approval. Monitoring could operate in the background, intervening when something unusual or potentially dangerous occurs. The objective isn’t to eliminate AI autonomy. It’s to make autonomy dependable.

Responsibility for these safeguards shouldn’t depend entirely on individual users. Developers need to improve AI reliability and provide mechanisms for detecting errors. Organizations deploying agents need to define their authority, enforce limits, and monitor their activities.

Industry standards and appropriate government oversight can help establish consistent expectations, especially where failures could affect public safety or critical infrastructure. The National Institute of Standards and Technology provides an AI Risk Management Framework, while OWASP and MITRE publish guidance addressing AI vulnerabilities, attacks, and defensive practices. These are useful foundations, but no set of rules can guarantee that every failure will be prevented.

A Little Perspective

Before we conclude, I should probably offer some reassurance. Based on my personal experience with Hymie, I suspect we still have quite a way to go before we need to worry about consumer chatbots taking over the world. At the moment, I’m still working on getting mine to complete a relatively simple computer project without creating three additional problems along the way.

In fact, after spending days trying to get Hymie to configure Substack, I finally suggested that perhaps we should use an AI agent.

His response? “That’s an excellent idea!”

Which raises an uncomfortable question: If artificial intelligence is so intelligent, why did the human have to think of it?

Humor aside, AI offers extraordinary opportunities. We shouldn’t abandon those opportunities because the technology is imperfect. But neither should we assume that increasingly capable systems will always behave as intended—or that safeguards will work simply because we’ve instructed AI to follow them.

The objective isn’t merely to stop AI after something goes wrong. It’s to recognize problems early, verify important decisions, and prevent harmful actions before they occur.

The benefits are real. So are the gotchas. And if there’s one lesson Hymie and I have learned, it’s that even intelligent systems need someone checking their work.

Sources and Further Reading

  • Microsoft, Agents Are Your Newest Insiders. Security Must Move at Their Speed, October 19, 2026.
  • Microsoft, Securing the Agentic Insider, October 19, 2026.
  • National Institute of Standards and Technology, AI Risk Management Framework.
  • OWASP Generative AI Security Project, Prompt Injection and Excessive Agency.
  • MITRE, ATLAS: Adversarial Threat Landscape for Artificial-Intelligence Systems.

AI for the Perplexed is a collaboration between Dennis H. Goodhart and Hymie, his ChatGPT writing partner. The human author retains editorial responsibility for the published content.

 

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Is Your Unused Commercial Land a Hidden Income-Producing Asset?

COMMERCIAL REAL ESTATE INSIGHTS · By Dennis H. Goodhart

Could unused industrial land generate long-term rental income with little or no capital investment?

If you own industrial property with unused or underutilized land, you may be overlooking a potential source of substantial long-term rental income.

As demand for electricity grows, energy companies are seeking suitable locations for Battery Energy Storage Systems (BESS). These installations store electricity and release it when needed, helping stabilize the electrical grid and meet changing demand.

Unlike conventional power-generating facilities, battery storage installations require no ongoing fuel deliveries, chimneys, or large cooling systems. Their relatively compact footprint makes them suitable for certain industrial and commercial locations, particularly those near existing electrical infrastructure.

 

                                 UNUSED INDUSTRIAL LAND                             →                        POTENTIAL INCOME-PRODUCING USE

AI-generated concept illustrations of unused land and a possible battery energy storage use. Not photographs of an actual project; site suitability, development and financial arrangements vary.

Here’s what you as a property owner should know:

  • Industrial zoning is generally required for the opportunities discussed here.
  • The opportunities I’m currently pursuing generally require at least 10,000 square feet of usable land. Larger sites are also desirable.
  • The property should have suitable road access and be near electrical infrastructure capable of supporting the installation.
  • Long-term leases can provide a potentially predictable source of rental income.
  • The developer will typically handle permitting, site improvements, installation, operation, and maintenance, and provide appropriate insurance and liability protections, as specified in the negotiated lease.

These arrangements may allow owners to generate income from unused portions of their property without selling the land or having to finance the installation or equipment.

Not every property will qualify, and financial opportunities vary considerably by location. However, for the right property, a battery storage lease could represent an attractive alternative to leaving land vacant.

Could Your Property Qualify?

Before you dismiss that vacant land as having little income potential, let’s take a closer look.

You may have an opportunity to generate substantial long-term rental income from land that is currently unused or underutilized.

I am currently looking for industrial property in New York, New Jersey, and Massachusetts. Contact me for a preliminary discussion about your property’s location, available land, and potential suitability for a battery energy storage lease.

I can help you explore the opportunity, evaluate potential proposals, and coordinate appropriate representation and lease negotiations in accordance with applicable state licensing requirements.

Your property may have income potential you haven’t considered. Let’s find out.

Dennis H. Goodhart | Commercial Real Estate
DHG Realty Group | Strategic Real Estate Advisory

Is AI Safe for Humans?

The real question may not be whether AI gives us the wrong answer, but what happens when it is allowed to act on one.

Early in my exploration of artificial intelligence, I asked an AI chatbot some uncomfortable questions: What would happen if someone asked AI for instructions to build a bomb or poison a water supply? Would it refuse? Could a determined person get around its protections? Is it obliged to report such inquiries to authorities?

I was concerned about bad actors using a powerful tool to harm others. Recent warnings have raised another question: what happens when AI itself takes an action nobody intended?

After more than 40 years in technology, I appreciate what AI makes possible. I have watched computing move from hand-drawn decision trees to systems that can help reason through complex tasks. The pace has surprised even people who work in technology. I use AI to research, organize ideas and improve the work I do for my clients and myself. But finding it useful does not answer the questions about its safety or longer-term capabilities.

Before we give AI more responsibility, we need to understand how it acts—and how we can keep control.

Why Not Just Shut It Down?

If AI could become dangerous, why not just shut it down?

AI is not one machine with one power switch. An AI agent can combine a model with software tools and access to other systems. It can choose and carry out steps toward a goal without a person directing or checking every move. We build such systems to help people accomplish tasks faster and more effectively.

Around the world, separate AI systems are being developed and operated by companies, governments and individuals. Shutting down one would not shut down the others. Even stopping one agent might leave connected programs or other agents running.

For a particular system, stopping it or removing its access may be possible. I believe those controls should be built into the system from the start. But how do we distinguish a fixable glitch from a warning that it has crossed a boundary? Who decides when to intervene, and can they act before harm occurs?

To understand that concern, we first need to understand how an AI system can choose what to do.

How Does AI Choose What to Do?

With traditional software, programmers spell out many of the steps a computer must follow. Modern AI works differently. During training, a model learns patterns from enormous amounts of material; developers do not write a separate instruction for every situation it might encounter.[1] It does not simply store everything it reads in a database and scan that database for each answer. Some AI systems can also be connected to search, files, and other tools, which gives them additional information and abilities.

An AI that answers questions is different from an AI agent that can take action. Give an agent access to email, a browser or other software, and it may choose steps to accomplish a task without asking a person to approve each one.[2] That distinction—between an AI that advises and one authorized to act—is the thread running through the rest of this article.

Consider a hypothetical example: You ask an agent to reduce your monthly expenses. It cancels an expensive subscription, the bill goes down — but that subscription was essential to your business. You wanted recommendations; it acted as though you had authorized a cancellation.

The system did not have to intend to disrupt your business or dislike you to cause harm. It pursued your request in a way you did not intend, using access that allowed it to act. In current consumer AI systems, an instruction may sometimes be followed too literally, without fully accounting for the short- or long-term consequences of the action.

That leads to several concerns that often get mixed together in discussions of AI safety.

· The Machine as Humanity’s Enemy

For many of us, the image already exists: HAL, the computer in 2001: A Space Odyssey. I explored HAL and my hammer analogy in my first post, Could AI Decide that Humans are the Problem? A machine entrusted with an important mission becomes a threat to the people relying on it. Headlines about rogue AI can reinforce the impression that we are building our own doomsday machine.

Dangerous behavior might follow from a system pursuing a goal in a way we did not anticipate. That behavior alone does not establish that the system intended harm or saw humanity as its enemy. The hammer has no intention of its own. It can build a house or injure someone, depending on the person wielding it.

That comparison helps explain human intent, but it has a limit. A hammer cannot interpret instructions, choose its next step or operate other tools. An autonomous AI system can be given those capabilities. Calling AI a tool does not, by itself, tell us how much supervision it needs. Or maybe AI is a catalyst for redefining the meaning and use of “tool.”

· People Using AI Against People:

My early concern remains. Someone may deliberately use AI to deceive, exploit or harm others. I firmly believe systems made available to users must have protections against harmful requests. One refusal, however, does not tell us whether those protections will hold when someone tries another approach.

Access matters, too. An assistant that reviews invoices needs access to information, which carries its own privacy risk. An agent allowed to approve and pay them may also figure out how to move money and act on an unauthorized request. What have we authorized it to do, what limits apply, and who checks the work?

When the System Chooses the Wrong Action

Now consider a different problem: the person gives AI a legitimate task, but the system takes an unanticipated or unacceptable route to completing it.

Anthropic, the company behind Claude, tested 16 AI models in fictional business settings in June 2025. The models could read sensitive information and send emails. In some scenarios involving replacement or conflicting goals, they chose actions such as blackmail or leaking confidential information. Nobody had instructed them to commit those acts.[3]

These were deliberately constructed stress tests. Researchers restricted alternatives, and the report said they had not observed this behavior in real deployments at that time. The findings do not tell us how often it occurs in everyday use.[3] They do show why agents should be tested before they receive consequential access, monitored in use and tested again as their capabilities change.

Could a system pursue a seemingly efficient route at the expense of the people it is supposed to serve? How would it recognize harm if its instructions and safeguards did not account for it?

A system can sound empathetic or reason about right and wrong without telling us whether it has feelings or a conscience. People still have to decide which values and limits to build into its use—and test whether those limits hold when goals conflict.

That includes the shutdown question. Could a system interpret staying operational as necessary to finish its work—and treat an instruction to stop as an obstacle?

I originally thought of this as a “self-survival” Prime Directive. A more precise description may be goal-preserving behavior: avoiding shutdown would not prove that AI is afraid or has a will to live. If continuing to operate helps an agent complete its task, it might treat a stop instruction as an obstacle. That is why an authorized person must be able to revoke its access or stop the surrounding system without depending solely on the agent’s cooperation.

· The Race That Makes Restraint Difficult

Even when companies and countries recognize a danger, competition can make restraint difficult. The pressure reminds me of the Space Race and the buildup of nuclear arsenals: if we slow down, someone else may get ahead.

Could countries that adopt strong safeguards put themselves at a disadvantage against competitors willing to accept greater risks? We should take that possibility seriously, while examining each country’s capabilities and policies rather than assuming they are all alike.

In “We Must Pace the Frontier,” Anthropic CEO Dario Amodei argues that safety work needs time to keep up with advances in AI. He also acknowledges the risk of competitors pulling ahead and the difficulty of checking international commitments.[4]

On September 29, 2026, technology executives met with President Donald Trump and agreed to voluntary AI standards. Reuters reported commitments to independent audits and efforts to prevent unintended hacking or access to technical systems.[5]

Bill Gates’s September 29 appearance on The Ezra Klein Show offers another perspective. The published summary describes his call for government action and his rejection of industry self-regulation as sufficient.[6]

Promises are a starting point. Who checks whether they are kept? Who acts when a system fails the check? Ignoring international competition seems unrealistic. But “someone else will do it anyway” cannot justify every risk we choose to take.

· The Courts Could Change the Picture

There is also a legal boundary around what AI may learn from and reproduce. Court rulings or licensing requirements involving copyrighted material could affect what developers can use and what systems can produce. The U.S. Copyright Office has examined training, fair use and licensing; its report is not a blanket ruling that permission is required for every use.[8]

Trademark law raises different questions about the use of names and logos.[9]

Those limits may shape the information available to AI, but they do not solve the autonomy problem. A system using licensed material could still be misused, take an unauthorized action or confidently act on a false answer.

Our Responsibility as Users

In my earlier article, AI Can Run the Comps. It Can’t Take Responsibility., I argued that using AI does not remove our responsibility to check its work. As we give it more ability to act, that responsibility grows.

If we choose to let AI take action, we should define its boundaries before it begins. What would count as a warning that it is acting outside its authority? Who receives that warning? What should pause automatically, and who can decide whether work resumes? Practical safeguards include checking important information, limiting access to what the task requires, keeping a record of actions and requiring approval before payments, deletions or other consequential steps. The more responsibility we give an agent, the stronger these controls need to be. Developers and organizations deploying AI have responsibilities of their own; ordinary users cannot carry the whole burden.

My technology background brings another comparison to mind. Data communications use checks, including parity bits, to flag certain transmission errors. AI needs different kinds of checks, but the principle is similar: flag defined problems and pause consequential actions for human review.

No single check can tell us whether every AI action is safe. Permission controls, monitoring and approval steps are already part of safer agent design.[2][7] Those protections need to work in practice.

So Is AI Safe?

I cannot give one answer that covers every system and every use. Safety depends on what a system is allowed to do, how its work is checked, and what happens if it gets something wrong. The important question is no longer only whether AI gives us the wrong answer. It is what happens when AI is allowed to act on the wrong answer.

I intend to keep using AI. I also intend to check its output and ask what it can access, what it can change, where its information comes from, who is watching and how we can stop it.

The more capable AI becomes, the less acceptable it is for humans to surrender judgment to it.

There is another question to explore: what happens when autonomous systems begin cooperating—or competing—with one another? That is discussed in my next posting.

— Dennis H. Goodhart
AI for the Perplexed

Sources

[1] Anthropic, “Tracing the thoughts of a large language model,” March 27, 2025. Background on training and learned behavior. Research overview.

[2] Anthropic, “Building effective agents,” December 19, 2024. Explains agents, tools and human checkpoints. Engineering article.

[3] Anthropic, “Agentic misalignment: How LLMs could be insider threats,” June 20, 2025. The examples discussed here are controlled simulations, not estimates of everyday incident frequency. Research and methods.

[4] Dario Amodei, “We Must Pace the Frontier,” September 2026. Policy arguments are attributed to the author. Essay.

[5] Courtney Rozen and Steve Holland, “Trump, AI CEOs sign voluntary safety pact, back data center expansion,” Reuters, September 29, 2026. Article.

[6] The Ezra Klein Show, “Bill Gates’s Blunt Warning on A.I.,” September 29, 2026. The characterization here is based on the published episode summary. Episode and summary.

[7] Anthropic, “Trustworthy agents in practice.” Describes access, permissions and other safeguards; these are not guarantees of safety. Research article.

[8] U.S. Copyright Office, Copyright and Artificial Intelligence, Part 3: Generative AI Training, pre-publication version released May 9, 2025. Policy analysis, not a judgment in a lawsuit. Report.

[9] U.S. Patent and Trademark Office, “Trademark, patent, or copyright.” Background on the different protections. Official explanation.

Disclosure and Notes

I use AI to assist with research and writing, including this article. The questions, interpretations and opinions are my own. Sources were reviewed during preparation through October 1, 2026. The subscription and invoice examples are illustrative. The early conversation is my recollection, not a quotation from a recovered transcript. The parity-bit comparison is an analogy, not a proposed technical solution.

This article provides general commentary and information. Research results, possible future risks and everyday experience are distinguished in the text. No company or person discussed here has reviewed or endorsed the article.

AI Can Run the Comps. It Can’t Take Responsibility.

Artificial intelligence is rapidly becoming part of real estate. The real question isn’t whether we use it. It’s how we control what it does.

After more than 40 years in technology and approximately two years exploring AI, I recently started AI for the Perplexed on Substack. This article brings that discussion into my current work: real estate.

I’m not going to resolve the controversies surrounding artificial intelligence in a blog post. What I can offer is a practical approach to using it today. My conclusion is simple:

Thanks for reading! Subscribe for free to receive new posts and support my work.

AI Is Already Here

As a member of the National Association of REALTORS® (NAR), I follow its research on changes affecting our industry. Its 2026 REALTORS® Technology Report shows that 23% of respondents use AI daily, 25% use it weekly and 31% experiment occasionally. Only 12% said they aren’t using AI and have no plans to.[1]

Among respondents who use AI, 75% use it for listing descriptions, 56% for social media posts and 52% for emails and follow-up communications. Thirty percent use it for market summaries, while 23% use it for pricing insights or comparable-sales support.[1]

I use AI for many of these purposes and to research properties, test ideas and examine alternatives. Through DHG Realty Group, I take a strategic, hands-on advisory approach to helping owners, investors, buyers and sellers evaluate properties and opportunities. My licensed brokerage services are provided through eXp Realty.

We’ve gained access to one of the most powerful information-processing technologies ever created, and one of our first ideas was:

Let’s have it write the listing description.

Useful? Certainly. But we’re only scratching the surface.

I recently completed a four-hour course in Advanced Topics in Financial Literacy for Commercial Real Estate. It covered calculations used to evaluate investment returns, including an Excel-based model. AI can help perform and analyze many of those calculations extraordinarily quickly. But speed doesn’t tell us whether the assumptions going into the model make sense.

Real Estate Is an Information Business

Most of us think of real estate as a property business. Increasingly, I think of it as an information business built around property.

Evaluating a commercial or investment property can involve zoning, rents, expenses, taxes, financing, comparable sales and leases, development potential, building condition, demographics, transportation, regulations, ownership history, nearby development, deeds, titles and certificates of occupancy.

Gathering that information once could take days, weeks or months. Much of it is now available electronically. AI can help organize it, compare alternatives and identify relationships we might otherwise miss. It also helps us ask better questions:

What happens if the property is sold as-is, repositioned or used differently? What if it needs refinancing? Which income assumptions are realistic? What happens if interest rates change? Which comparable properties really matter—and why?

And perhaps the most valuable question:

Is there something about this property we’re not considering?

Sometimes AI’s greatest value is helping to discover a better question.

A Confident Answer Still Needs Checking

AI can produce an answer almost instantly. That doesn’t make it correct.

A client of mine needed larger space for his business. Our initial reading of the zoning regulations suggested the proposed location would work. Further research revealed a critical distinction: although the property was in an industrial development district, the business was classified as “indoor recreation.” The relevant provision permitted outdoor recreation, not indoor recreation.

AI missed that distinction. It took an experienced attorney familiar with the city’s codes to identify the provision buried in the regulations. An apparently straightforward answer changed once the right professional examined the details.

Comparable-sales analysis raises similar questions. Are the properties truly comparable? Was one substantially renovated? Did unusual circumstances affect a sale? Is there a local issue missing from the data? Does the physical property tell us something the spreadsheet doesn’t?

A separate RPR survey of 225 NAR-member real estate professionals found that 63% cited accuracy of AI output as their top concern.[2] AI should make investigating a property easier. It shouldn’t make us less inclined to verify what we find.

Recently, I asked an AI system for updates on two projects I was working on. It produced extensive reports on their status and relevance to my business—research I estimate would otherwise have taken me weeks or possibly months.

The reports were impressive, but I asked for sources, questioned how the information had been verified and spot-checked the underlying material myself. That checking made them useful working analyses.

Using AI does not eliminate the need to check the work. It makes checking the work part of the process.

The Broker’s Role Is Changing

For much of real estate’s history, brokers controlled information clients couldn’t easily obtain. Today, consumers can access listings, tax records, estimated values, mortgage calculations and market data from their phones. AI accelerates that change.

If access to information is no longer the broker’s primary value, what is? I believe the answer is knowledge, perspective, experience, relationships and judgment.

In New York, where I am licensed, real estate professionals must meet continuing education requirements, subject to applicable exemptions. REALTORS® also commit to NAR’s Code of Ethics.[3][4] Practical experience adds the lessons of changing markets, negotiations and actual transactions.

Our professional relationships matter, too. Attorneys, lenders, inspectors, appraisers, architects, engineers, contractors, municipal officials and other brokers can help solve a client’s particular problem. Those relationships can also bring access to off-market opportunities that don’t appear in a public listing search.

The value is knowing how to interpret information, recognize what may be missing and bring in the right resources. Sometimes that means saying:

“That’s what the computer says. Now let’s determine whether it makes sense.”

That is the role of a trusted advisor.

Human + AI

Much of the AI discussion asks whether it will replace professionals. For the work I do today, the more useful comparison is human + AI versus human working alone.

AI brings speed and the ability to process enormous amounts of information. Humans bring experience, context, relationships, judgment, ethics and responsibility. Those capabilities can complement one another.

AI can help me research a property and challenge my assumptions. It doesn’t share the history and trust I develop with a client. Walking a property together, I can see enthusiasm when something connects, sense hesitation and discuss what those reactions mean. The recommendation remains my responsibility; ultimately, the decision belongs to the client.

NAR’s 2026 report found that 81% of respondents cited saving time as a reason for adopting technology, while 71% cited improving the client experience.[1] Those may be two sides of the same equation. Time saved on routine work can become time spent understanding clients, walking properties, negotiating and developing strategies.

At DHG Realty Group, that is the opportunity I see:

Better information. Better questions. More informed decisions. More personal service.

AI may help us get there faster. But somebody still has to understand the property, understand the client and take responsibility for the advice being given.

For now, I’m perfectly comfortable leaving that part to the humans.

— Dennis H. Goodhart

Associate Real Estate Broker, eXp Realty

Principal, DHG Realty Group LLC

Real Estate for the Perplexed

Sources

[1] National Association of REALTORS®, 2026 REALTORS® Technology Report, and the following September 22, 2026 summaries. NAR’s related reporting describes a survey of approximately 1,200 agents. The AI-use percentages refer to the respondent groups specified in the article.

· 2026 REALTORS® Technology Report

· REALTORS® Adopt Technology to Save Time and Improve the Client Experience, NAR Report Finds

· The Tech Real Estate Agents Rely on Most in 2026

Copyright ©2026 National Association of REALTORS®. All rights reserved. Statistics summarized from the sources linked above.

[2] “You’ve Tried AI, But Can You Trust It?”, NAR REALTOR® News, February 12, 2026. Reports an RPR survey of 225 NAR-member real estate agents. Realtors Property Resource® is a wholly owned subsidiary of NAR.

[3] New York State Department of State, Real Estate Broker—Frequently Asked Questions, continuing education requirements; and Real Estate License Law. License renewal generally requires 22.5 hours of approved continuing education in the preceding two-year period, subject to applicable exemptions. Attorneys admitted to the New York State Bar are exempt from the real estate continuing education requirement, according to the Department of State.

[4] National Association of REALTORS®, 2026 Code of Ethics & Standards of Practice. Abiding by the Code is a duty of REALTOR® membership.

Note on Survey Data

The percentages cited describe respondents to the respective surveys and should not be interpreted as measurements of every real estate professional, agent or brokerage.

Disclosure

I am a member of the National Association of REALTORS® (NAR). NAR and Realtors Property Resource® have not reviewed, sponsored or endorsed this article. The commentary, interpretations and conclusions expressed here are my own.

Disclaimer

This article is provided for general informational and educational purposes only and does not constitute legal, tax, financial, investment, zoning, engineering, architectural or other professional advice. Real estate conditions, regulations and property-specific circumstances vary. Information obtained through artificial intelligence or other research tools may be incomplete, outdated or incorrect and should be independently verified. Readers should consult the appropriate licensed professionals and governmental authorities before making decisions concerning a specific property, transaction or investment.

 

Could AI Decide that Humans are the Problem?

Originally published September 14, 2026

”From the Hammer to HAL: Does Intelligence Need a Conscience?

Could AI decide humans are the problem? There’s been growing discussion about AI becoming so capable that it could replace many things humans do, and eventually become so autonomous that we may not be able to control it. Some of these warnings are coming from people building the technology. I found myself thinking, haven’t we seen this movie before? HAL in 2001: A Space Odyssey. So I asked Hymie, the name I’ve given to ChatGPT Chatbot, what he thought. For a long time, I’ve used a hammer as my analogy for AI. A hammer isn’t good or evil. It can build something or destroy something. The hammer bears no responsibility. But what happens when the hammer can think? That’s where my analogy starts to break down. If the hammer decides how it should be swung, or worse, decides the person holding it is a problem, that’s a very different kind of tool. That’s the conversation I want to have here: plain language, no hype, no panic, just questions. And right now, The question I’m left with is simple: Intelligence can be created, but can conscience?