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ew York’s Department of State warns buyers and agents that AI‑generated photos in real‑estate ads can mislead. Officials note that automated tools may inflate property features, breaching licensing rules that require truthful listings. Violations can trigger disciplinary action and fines. A study in the International Journal of Information Management shows consumers distrust such images, damaging confidence and buying intent. The Consumer Protection division urges buyers to verify agents’ credentials, scrutinize photos, and report suspicious content to the state for review.