Zillow Shut Down Zillow Offers Division Allegedly Due to Predictive Pricing Tool's Insufficient Accuracy

November 2, 2021

Zillow's AI-powered predictive pricing tool, Zestimate, faced difficulties in accurately forecasting housing prices due to market volatility. As a result, the company shut down its Zillow Offers division and let go of several thousand employees.

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MAP 3.2 — similarity 0.682, rank 1. TAIM detail and related incidents →
MEASURE 2.6 — similarity 0.673, rank 2. TAIM detail and related incidents →
MEASURE 1.3 — similarity 0.667, rank 3. TAIM detail and related incidents →

Alleged deployer: zillow
Alleged developer: zillow-offers
Alleged harmed parties: zillow-offers-staff, zillow

Source

Data from the AI Incident Database (AIID). Cite this incident: https://incidentdatabase.ai/cite/149

Data source

Incident data is from the AI Incident Database (AIID).

When citing the database as a whole, please use:

McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.

Pre-print on arXiv · Database snapshots & citation guide

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