If you use AI renders or digitally edited photos to show clients what a remodel will look like, you may be subject to California’s AB723 disclosure requirements. Here’s what the law says in plain English and what you need to do as a contractor.
What AB723 requires
AB723 (California Civil Code) requires that any digitally altered visualization of real property used in a commercial context be clearly labeled. The intent is to prevent homeowners from being misled by AI-generated or Photoshopped images that show a property looking different from its actual condition.
For kitchen remodel contractors, this means: if you show a client an AI-rendered image of what their kitchen could look like after a remodel, that image must carry a disclosure indicating it has been digitally altered.
Who does this apply to?
- Contractors using AI visualization tools at walk-throughs
- Real estate agents using virtual staging
- Interior designers sharing digitally altered room mockups
- Anyone using AI-generated images of real property in a commercial or advertising context
If you’re a contractor in California showing an AI render of a client’s kitchen to win a job, you need the disclosure.
What the disclosure looks like
The law requires a “clear and conspicuous” label. In practice, this means a visible watermark or text overlay on the image itself, not buried in fine print on a separate page.
A compliant disclosure looks like:
Digitally Altered Visualization · AB723 Compliant
This should appear on every AI-rendered image you share with clients, whether it’s on a screen at the walk-through, in a PDF proposal, or in an email.
What happens if you don’t comply?
Non-compliance can result in liability if a homeowner claims they were misled by an altered image. The specific penalties depend on the context and any resulting damages, but the easier path is to just add the watermark and eliminate the risk entirely.
How RemodelVision handles AB723
RemodelVision AIautomatically applies an AB723-compliant watermark to every AI-rendered image before it’s stored or shared. The watermark reads “Digitally Altered Visualization” and is baked into the image file itself, not added as a CSS overlay that could be removed by screenshotting.
The Vision Report PDF also carries the disclosure in its footer on every page. Contractors using RemodelVision don’t need to add their own watermarks or remember to include a disclaimer — it’s handled automatically.
Best practices for contractors
- Always use a tool that auto-watermarks.Relying on yourself to add the disclosure manually means you’ll forget it on the one image that matters.
- Keep the disclosure visible.A faint gray watermark on a white wall is technically present but not “clear and conspicuous.” Use contrast.
- Include the disclosure in the PDF, not just the image. If you export a proposal document, the disclosure should appear in the footer or near each rendered image.
- Verbally mention it at the walk-through.“This is an AI visualization of what your kitchen could look like — the actual colors and materials will vary slightly.” Sets expectations and builds trust.
Beyond California
Even if you don’t operate in California, adding the disclosure is good practice. Similar legislation is being considered in other states, and the FTC has issued guidance on AI-generated content in advertising. Labeling your renders now means you’re ahead of the curve when (not if) your state catches up.