The New South Wales tenants union has called for nationwide reforms to crack down on misleading rental advertisements after the state government introduced new laws in response to the growing use of artificial intelligence in real estate.

The legislation, announced on Sunday, will require mandatory disclosure when images in rental advertisements have been altered to conceal faults and mislead rental applicants.

The state government cited examples of real estate agents using artificially generated furniture that showed a double bed in a bedroom that was only large enough to fit a single in listings, or digitally modifying photos to obscure property damage.