By The Stacey Froelich Team | September 10, 2026

A new piece of New York State legislation could soon require real estate agents and brokers to tell buyers and renters when artificial intelligence has been used to alter listing photographs — and to show the original, unedited images alongside any enhanced versions.

Quick Answer: What does this New York bill do?
Assembly Member Linda Rosenthal has introduced legislation that would amend New York’s real property law to mandate disclosure whenever digitally altered images appear in listings or promotional materials for the sale or lease of a property. The bill would also require that the unedited original photos be included. Standard adjustments such as brightness correction, color grading, and cropping would not trigger the disclosure requirement.

What the Bill Actually Says

Assembly Member Linda Rosenthal, whose district covers parts of the Upper West Side and Hell’s Kitchen, introduced the legislation in July 2026. The bill targets a specific and growing practice: using AI tools to digitally stage apartments and homes for online listings in ways that go far beyond simple photo editing.

Under the proposed law, any time a listing agent uses AI to add, remove, or change elements in a photo — such as swapping out flooring, inserting furniture, or altering wall colors — the listing must include a disclosure statement and the original, unmodified version of the image. The bill’s text draws a clear distinction: routine post-processing like adjusting exposure, correcting white balance, or cropping a frame would not require disclosure.

Why This Is Happening Now

AI-powered photo editing tools have become dramatically more accessible in recent years, making it possible for agents with no design background to produce polished, virtually staged images in minutes. The quality has improved to the point where even experienced buyers and renters can be misled about a property’s actual condition, layout, or finishes.

The bill’s text acknowledges that while these tools can make a listing more visually appealing and drive more interest, they also carry the risk of creating a false impression of the space — particularly around furniture scale, natural light, and condition of existing features like floors or cabinetry.

Where Other States Stand

New York would not be the first to act. California and Wisconsin have already passed laws requiring agents to disclose when AI tools are used to modify listing photos, as reported by the New York Times. New Jersey lawmakers are also reportedly weighing similar legislation. If the trend continues, a national disclosure standard may eventually follow.

What Happens Next in New York

Rosenthal’s bill is expected to be taken up for discussion when the New York State Legislature reconvenes in January. Real estate industry groups have not yet signaled a formal position on the bill, though the legislation’s carve-out for standard photo editing may reduce opposition from agents who rely on basic retouching in their listing workflow.

Why This Matters for NYC Real Estate

We think this is a meaningful development for buyers, sellers, and the agents who serve them in New York. At The Stacey Froelich Team, we already label any virtually staged photos clearly in our listings — because we believe buyers deserve to walk into a home knowing exactly what they’ll find. Legislation like this would formalize that standard across the industry.

For buyers navigating a competitive and often expensive market, the gap between an AI-enhanced photo and reality can be significant. A listing image that shows gleaming hardwood floors, updated appliances, and flooded natural light may look nothing like the unit that actually hits the market. Requiring disclosure — and the original images — gives buyers a more accurate basis for decision-making before they schedule a showing or make an offer.

For sellers and their agents, the bill creates clarity rather than restriction. If a seller wants to show a virtually staged version of an empty apartment, they can still do so — they simply need to show what the space actually looks like as well. That transparency tends to build, not undermine, buyer confidence.

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Frequently Asked Questions

Does this bill ban the use of AI in real estate listing photos?
No. The legislation would not prohibit AI-enhanced or virtually staged images. It would require that listings include a disclosure statement and the original unedited version of the photo alongside any AI-altered images.

What kinds of edits would trigger the disclosure requirement?
Changes that add, remove, or alter elements of a photo — such as furniture, flooring, walls, or appliances — would require disclosure. Routine adjustments like brightness, color correction, and cropping would not.

Which states already have AI listing photo disclosure laws?
California and Wisconsin have passed laws requiring real estate agents to disclose when AI is used to alter listing images. New Jersey is considering similar legislation.

When would this law take effect in New York?
The bill has not yet passed. It is expected to be discussed when the New York State Legislature reconvenes in January 2027. Even if passed, there would likely be a period before the law goes into effect.

How does The Stacey Froelich Team handle virtually staged photos now?
We label all virtually staged or digitally enhanced photos as such in our listings. Transparency with buyers has always been part of how we work — this legislation would make that practice a legal requirement for all New York agents.

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Source: This post is based on reporting by Kathryn Brenzel for The Real Deal. Read the original coverage at The Real Deal.