TORONTO — Ontario homebuyers are seeing more listing photos staged with artificial intelligence, and the Real Estate Council of Ontario has confirmed that the practice is allowed as long as the images are not misleading and are clearly disclosed.AI tools now let agents add furniture, décor, and finishes to empty rooms at little or no cost. Some listings contain rooms where the furniture or surfaces look slightly unnatural, a frequent marker of AI generation. Agents who use the technology say it helps buyers visualize a space. Critics say it can still create a misleading impression of size, condition, or layout once the buyer arrives in person.RECO said the Trust in Real Estate Services Act already requires that advertising “must never be false, misleading, or deceptive.” Communications director Tess Lin stated that consumers must be able to identify when an image has been virtually altered or AI-generated, usually through a label on the photo or a note in the listing. Local boards have issued similar guidance: staged images are generally permitted if they do not alter the physical structure of the property, and the original unstaged photo should also appear.In a market where many first-time buyers are already stretched by high prices and carrying costs, an image that overstates a room’s size or condition can affect a purchase decision. Without consistent, prominent disclosure and active enforcement, buyers are left to determine which photos accurately represent the property they are considering.