I'm honestly fine with that as long as it's labeled.
Having just done an apartment search a few months ago, AI staged images are surprisingly good quality. It's difficult to detect it as AI when going through a bunch of listings quickly. But yea, I guess it can cause confusion if it sticks a Peloton (or whatever) in a space where it won't actually fit.
Landlords should not be using tools to stage units, it's going to lead to false expectations on the size of apartments.
Which meant you could toggle between the staged and unstaged photo. I didn’t notice any warping or distortion.
(De-staging is a particularly neat trick - if a property still has some of the current tenant's belongings in it, an AI model can remove those items to show what the room would look like empty.)
I dont care about simulating furniture placement specifically, but most use of AI in advertising that I see today would not be acceptable under that standard.