Landlords Accused of Discrimination Using AI Screening Tool, Agree to $2.3 Million Settlement

Nov 22, 2024, 06:38 AM

Two large private-equity-backed landlords have been accused of discriminating against prospective tenants by using screening systems that reported inaccurate information about applicants’ previous evictions and criminal histories. SafeRent, an AI screening tool used by landlords, has agreed to pay approximately $2.3 million to settle the class action discrimination lawsuit and will no longer display certain tenant scores. The landmark settlement, approved by a federal judge, challenges the role of AI in tenant screening. SafeRent Solutions will also make changes to its scoring system following claims of discrimination against low-income tenants.