LLMHigh
Zillow Shut Down Zillow Offers Division Allegedly Due to Predictive Pricing Tool's Insufficient Accuracy
- Occurred
- Nov 2, 2021
- Published
- Nov 18, 2021
- Source
- AI Incident Database
Summary
Zillow's AI-powered predictive pricing tool Zestimate was allegedly not able to accurately forecast housing prices three to six months in advance due to rapid market changes, prompting division shutdown and layoff of a few thousand employees.
Developers
- Zillow Offers
Deployers
- Zillow
Harmed parties
- Zillow Offers staff
- Zillow
Classification
Category confidence: 70%
Severity confidence: 80%
Rationale: AI pricing tool failure caused major business shutdown and layoffs, fitting LLM category with high severity due to financial impact.
Classifier: Qwen/Qwen3.5-35B-A3B-FP8