Vice President Kamala Harris in the Roosevelt Room of the White House on May 5, 2023.

In the latest example of politicians blaming technological innovation for their policy blunders, Vice President Harris recently criticized algorithmic pricing software for high rent costs. She went even further in her economic plan by endorsing legislation to ban the technology.

Unfortunately, Harris wrongly assumes that these tools are responsible for high rent prices when the high rent is a result of existing market conditions.

In her proposal, Harris urges Congress to pass the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act, which would give the Federal Trade Commission the power to enforce a ban on using software or services that use historical price data to recommend rent prices.

Politicians are rightly looking for solutions to address the high cost of housing. Unfortunately, many of these solutions are unlikely to help — and may even delay needed policy changes that would lower prices in the rental and housing market.

The American Consumer Institute recently explained in a letter to the city of San Francisco regarding its ban on AI in rental price decisions, the culprits of runaway housing costs are inflation and burdensome government regulations that make it unnecessarily difficult to build housing. There is no evidence that AI is responsible for price fixing. Scapegoating technology for these self-imposed policy failures is only a distraction that does nothing to address the root problem.

Unfortunately, this is not the first time AI pricing software has been scrutinized. Colorado recently rejected a bill that would have banned AI rent-setting programs. Meanwhile, several Las Vegas hotel operators were sued last year for allegedly using AI algorithms to set rates for hotel rooms — a decision now on appeal after it was thrown out for lack of evidence last May.

What cases like these have in common is that critics usually fail to present sufficient evidence that AI is responsible for unlawful price-fixing.

The sad reality is that it is easy to blame new technology for a problem when it is poorly understood. In 2024, that technology is frequently AI. Reason Magazine recently discussed San Francisco’s proposed plan and argued that AI software operates in the same way as landlords. In fact, AI often comes to similar conclusions as landlords about appropriate pricing. That is not an indication of collusion or price setting.

The primary reason for high housing and rent prices is an inadequate supply of housing, which is significantly exacerbated by overregulation. AI rental data tools reflect this reality. The idea that AI is driving up rent prices doesn’t hold up to scrutiny. Americans would be better served by policies that encourage, rather than discourage, the use of innovative new tools for housing.

Finding a scapegoat is often easier than finding a solution, but it does little good. Harris endorsed a bill that kills the messenger rather than dealing with the underlying problems causing the housing crisis. The United States needs more housing and fewer distractions.