In the highly dynamic short-term rental market, regulatory compliance is a moving target. Cities frequently update their permit, zoning, and compliance requirements—leaving investors and data providers scrambling to keep up. Manual research methods, though precise, are slow, resource-intensive, and prone to lag behind real-time changes. To address these challenges, Karma Advisory partnered with a leading data solutions provider to design an AI-powered automation system that delivers timely, accurate, and scalable regulatory insights.

The Business Challenge

A prominent data solutions provider specializing in empowering short-term rental investors wanted to accurately collate regulatory data across multiple cities. The manual process was time-consuming, relied on highly qualified analysts, and required frequent updates due to the changing regulatory landscape.

The Solution & Implementation

• Built an AI agent leveraging LLMs, Google Search, and trusted content parsing

• Designed the system to dynamically crawl and extract up-to-date regulatory data

• Used context-aware generation for summarizing city-specific permit and zoning rules

• Deployed fact-verification layers to avoid hallucination and ensure data trust

• Evaluated multiple models (Gemini, Claude, OpenAI, Perplexity) for accuracy and tone

The Business Impact

• 80% reduction in manual research and analyst time

• Achieved 90%+ accuracy in city-level regulatory summaries

• Enabled faster product updates and opened new revenue streams

• Delivered timely, localized compliance data across 100+ U.S. cities

Key Implementation Techniques

• Real-time web search with structured scraping logic

• LLM-based answer generation trained on domain-specific tone

• Semantic clustering to avoid duplication and ensure coverage

• Flexible output formatting for downstream product integration

Conclusion

By automating regulatory data discovery, the client dramatically reduced dependency on manual analyst research while increasing the speed and accuracy of updates. The AI-driven system not only delivered localized insights across more than 100 cities but also created opportunities for new product offerings and revenue streams. This project underscores how intelligent automation can give organizations a competitive edge in fast-changing, compliance-heavy industries.