“They all have the same pattern,” he said. “We’re providing a lot of training to our property managers on how to deal with this and not to panic, because when you get a claim with, say, 200 pages against you, it can be quite intimidating.
“A lot of what the AI spits out, is actually also incorrect.”
In a case last year against Property Brokers, a tenant reportedly submitted a 101-page report, along with 215 pages of evidence, asking for $40,000 in compensation – all seemingly created by AI. The tenant ended up being awarded just $80.
Faulkner said these kinds of claims not only require more time and resources, but also cause delays in the Tenancy Tribunal.
However, the use of AI is not only being used by tenants, but by landlords and property managers, says Tenancy Advisory director Sarina Gibbon.
Her organisation provides education and advice around residential tenancy law, and Gibbon was less sympathetic about the bloated and complex claims caused by AI.
She said it’s “part of their job” for property managers and adjudicators to find solutions “in the face of an emerging technology”.
Gibbon believes the drawbacks of AI ultimately disadvantage tenants the most.
“Unfortunately, AI hallucination, AI bloat, the mis-setting of expectations tend to really disadvantage tenants because fundamentally, just as a rule of average, tenants are just generally a little less knowledgeable about the RTA.
“So they’re not able to even be able to figure out when AI is hallucinating and when they’re not.”
AI hallucination and bloat is giving tenants unrealistic expectations about compensation. Photo / 123rf
Gibbon said she’s seen AI deployed “so beautifully” in a way that “really lifts” applications, but it’s “very rare right now”.
The “biggest letdown” of how tenants use AI is the unrealistic expectation it gives about compensation.
“I see AI emboldening applicants to expect that they would have a huge monetary payout,” Gibbon said.
“And then these applicants come to my business, or they go to the Tenancy Tribunal, and they’re incredibly let down when they find out what they will get is nowhere near that.”
Gibbon said she was a big fan of the AI guidelines because it “reminds you of your core duties as an applicant”.
“If you just let AI hallucinate fact patterns that never happened or make fanciful and outlandish arguments to sort of stretch your rights, you’re going to be disappointed.
“You’re going to be under scrutiny, and [they’re] going to ask you questions, and you’re not going to be able to answer them.
“Fundamentally, AI does not reduce or enhance your rights and obligations under the RTA.”
Faulkner advised tenants who aren’t happy with how they’re looked after is to, first and foremost, speak to their landlord or property manager.
A Tenancy Services and Tenancy Tribunal spokesperson told the Herald they have seen “an increase in the apparent use of AI in the materials that we receive”.
“In some instances, the apparent AI-generated material has added significantly to the length and complexity of the claims. In other cases, it has been concise and relevant and assisted the tribunal in identifying and understanding the relevant issues.
“The tribunal received nearly 30,000 applications last year, most of which had no obvious AI component, so it is difficult to determine the overall impact of this increased AI use on the tribunal as a whole.”