California AB 723 Requires AI Image Disclosure Links, But Few Actually Comply

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California's AB 723, in effect since January 1, 2026, requires real estate listings using AI-altered images to display both a visible disclosure label and a link or QR code pointing to the original, unaltered photo. While most platforms have implemented the on-image text label, the second requirement — a publicly accessible comparison URL — is widely overlooked. A developer building a virtual staging product found that compliance links were rarely clicked because they were buried in listing descriptions rather than embedded directly on the image. The law covers alterations such as added furniture, sky replacements, and landscaping changes, but exempts basic adjustments like exposure correction, cropping, and sharpening. Four other U.S. states are reportedly considering similar legislation, making proper implementation increasingly relevant for real estate tech products.

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