Artificial intelligence (AI) is everywhere these days, and it’s changing how businesses work.
It’s helping companies set prices, speeding up research for new medicines, and even making everyday tasks easier.
But in New Jersey, some politicians seem uneasy about it. They’re worried about how AI might affect industries like housing and hospitality.
Here’s why they shouldn’t be—and why accepting AI could make our economy stronger and more efficient.
- AI doesn’t control markets but helps with decisions by looking at supply and demand, making it easier for businesses to stay competitive.
- AI pricing tools are already common in many industries, including state-run systems, showing how useful they are in today’s economy.
- Balanced laws are needed to get the most from AI without slowing progress or harming the economy.
AI in New Jersey and Current Misunderstandings
Artificial Intelligence (AI) is already a part of daily life in New Jersey, helping businesses, governments, and even transit systems work smarter.
But instead of appreciating its benefits, some politicians in Trenton are pushing for more restrictions on its use.
And this fear-driven approach could harm businesses, limit innovation, and fail to solve the problems they’re concerned about.
Take the recent case involving Atlantic City hotels. A lawsuit claimed these hotels used AI software to raise room prices unfairly.
But when the case reached federal court, the judge dismissed it. That’s because AI didn’t break any laws—it simply reacted to demand.
When demand goes up, prices rise.
When it falls, prices drop.
That’s basic economics, not price-gouging.
Despite this, some New Jersey lawmakers want to ban AI tools for landlords in the rental market.
Assemblywoman Yvonne Lopez, D-Middlesex, supports this move, claiming it’s needed to ensure fairness.
But the truth is, AI isn’t causing rents to go up.
Rising housing costs are tied to inflation and supply shortages, not AI software.
How AI Pricing Software Works in Real Life
AI pricing software is not a greedy villain manipulating markets.
It’s a tool that analyzes data—like the number of people who want an apartment or a hotel room—and helps businesses make decisions.
For example, during the Great Recession from 2008 to 2010, a study showed that landlords using AI tools lowered rents and filled more units than those who didn’t.
But this technology isn’t only for landlords and hotels.
New Jersey businesses have been using algorithmic pricing for decades.
Airlines use it to adjust ticket prices based on demand.
Transit systems and toll roads use it to keep traffic flowing.
And even the state government relies on AI to set toll rates dynamically.
So, if it works for highways, why should landlords be banned from using the same tech?
AI and the U.S. Economy
As we can see, AI is driving massive economic growth.
Experts predict AI could add $20 trillion to the global economy by 2030.
That’s like adding an economy the size of Germany to the world stage.
Nobel Prize-winning economist Michael Spence called AI a “game-changer,” saying it could solve problems like slowing growth and rising costs.
AI is already reshaping industries in New Jersey and beyond.
In pharmaceuticals, it’s speeding up drug development, saving time and money.
In customer service, AI helps employees respond faster and better.
In software engineering, it’s cutting repetitive tasks and boosting productivity by up to 45%.
Far from taking jobs, AI often makes them better.
Imagine a truck driver getting AI support for safer routes or a customer service agent using AI for instant coaching tips.
Undeniably, these tools are a far cry from replacing workers since they just enhance what they can do.
Risks of Overregulation Could Hold New Jersey Back
While AI has enormous potential, overregulation could stifle its benefits.
In Washington, D.C., some lawmakers are nervous about AI’s influence on pricing.
The Justice Department recently filed antitrust lawsuits against AI pricing software used in rental markets, and they claim it could lead to price-fixing.
Vice President Kamala Harris even endorsed tighter regulations during her campaign trail.
But here’s the issue: too much regulation could slow U.S. progress in AI development.
Countries like China are heavily investing in AI and aim to dominate the global market.
If the U.S. falls behind, it could miss out on the economic benefits and lose its edge in technology and innovation.
Even lighter regulations, like the European Union’s rule requiring transparency for algorithmic decisions, have unintended consequences.
AI is so advanced that some decisions can’t be fully explained in human terms.
For example, a chess-playing AI once beat a world champion by making moves that seemed wrong at the time—but later turned out to be brilliant.
Thus, demanding full transparency might limit AI’s potential or expose systems to hackers.
Using AI to Solve Problems and Improve New Jersey
Housing costs in New Jersey are undeniably high, and families struggle to pay rent.
But banning AI isn’t the solution.
Instead, lawmakers should focus on removing outdated regulations that make housing more expensive.
AI isn’t setting prices unfairly—it’s helping landlords and businesses respond to market realities more efficiently.
Think about it: New Jersey already uses AI for toll pricing and transit systems.
So, why not let landlords and other businesses use the same tools to improve their operations?
As we touched on earlier, AI isn’t here to replace human decision-making—it’s here to enhance it.
Thus, New Jersey politicians should stop fearing AI and start embracing it.
With balanced regulation and a forward-thinking approach, AI could help solve some of the state’s toughest problems, from high housing costs to economic growth.
The future is here, and AI is a part of it.
Let’s not hold it back.
