South African property and real estate companies are being urged to set up formal AI governance boards. Industry voices warn that the use of artificial intelligence is growing faster than the rules needed to manage it safely, according to a report by TechFinancials.
The property sector handles very sensitive data and high-value deals. This includes conveyancing and transfer instructions, tenant and applicant records, and lease documents.
“AI isn’t going to replace the people who run this industry; however, it is already changing what we expect of them,” said Omobolanle Adekola, Product Owner at MRI Software.
Adekola said a large share of listed REITs and home rental portfolios already run on shared platforms. Adekola said the risk of one AI tool touching the wrong set of data is real, not a guess.
“A properly constituted board turns that risk into a manageable, repeatable process instead of a potential crisis every time someone wants to trial a new tool,” she said.
Tenant and applicant records hold personal and financial details protected by the Protection of Personal Information Act, known as POPIA. The report said one fake payment instruction or one leaked applicant file could cost as much as a year’s technology budget.
Such a mistake could also lead to action from the Information Regulator, the report said.
According to the report, a good board needs more than IT and information security staff. It said legal, compliance, product, client support, sales, marketing and finance teams should also have a seat.
Finance matters more now because AI sellers are moving from per-user licences to pricing based on use. The report said this kind of pricing can quietly break budgets.
HR also has a part to play, the report said. AI still needs people to check it for accuracy, legal rules and ethics. It is expected to change jobs across the property sector.
The report said the main job of the board is to review requests for new AI tools. It should look at what each tool is meant to do and what data it will touch.
It suggested different levels of checks. A simple licence request might only need sign-off from finance. Bigger requests would also need IT approval.
Tools that touch outside systems or personal data would need sign-off from security, legal and risk teams together, the report said.
The report warned of two ways boards can fail. The first is a board that approves every request without asking questions.
The second is a slow board. The report said a board that takes six weeks to answer a simple question pushes staff toward free consumer AI tools. That puts company and client data at risk.
Companies working across several African and overseas markets were warned that one board may not serve the whole group. Data protection rules differ from country to country.
Smaller firms may not need a separate board, the report said. The work can sit inside an existing risk or technology committee, but it cannot rest with one person in IT.
Property companies with no AI rules in place were advised to pick people from each department and hold a first meeting to agree on the board’s scope and duties.
Source: this article is based on reporting by TechFinancials. Image: TechFinancials. Written with the help of AI and published by the Tzaneen Voice Technology desk. See our Editorial Standards.
Werner Jacobs covers technology for Tzaneen Voice. Werner reports on mobile networks, data prices, internet access, smartphones, apps, AI, cybersecurity and South African tech companies. Each story explains what a new product, price change or policy means for ordinary users in South Africa.