Navigating the Future: How Generative AI Fits into Appraisal Standards

By Vin Vomero, CEO FoxyAI

The appraisal industry is at a crossroads. With generative artificial intelligence (AI) rapidly transforming many professions, appraisers face important questions about how to integrate these cutting-edge tools into their daily practice. Recently, the Appraisal Standards Board (ASB) hosted an insightful webinar exploring their newly published concept paper on generative AI and its role within appraisal standards.

Key Takeaways from the Webinar

Generative AI tools—such as ChatGPT—are incredibly powerful, capable of creating content from vast datasets and significantly streamlining appraisal tasks. However, they are not without risks. The webinar highlighted concerns such as hallucinations, confidentiality breaches, and the potential for undermining professional judgment.

Appraisers are not prohibited from using generative AI, but they must exercise caution. The ETHICS RULE under USPAP makes it clear: using AI does not absolve appraisers from their responsibility to ensure accuracy, impartiality, and confidentiality. Similarly, the RECORD KEEPING RULE mandates rigorous documentation whenever AI is involved in the appraisal process, especially given the challenge of replicating AI outputs. Appraisers are asked to include screenshots of the inputs and outputs from any AI platforms they use. 

One question that remains unanswered is, if an appraiser uses gen AI as a starting point, and then edits the output to make corrections or provide additional information, is the original input and output still required or even relevant? 

Furthermore, appraisers must fully understand the capabilities and limitations of the AI tools they employ, adhering to the COMPETENCY RULE to ensure the credibility in their assignment results.

The Bottom Line

Appraisers are ultimately responsible for the data in their reports, and any incorrect information falls back on the appraiser.

Looking Ahead

The consensus was clear: while generative AI can be transformative, appraisers’ professional judgment must guide its integration. The ASB invites the appraisal community to actively engage in this crucial dialogue—your voice will shape the future of appraisal standards.

Participants are encouraged to submit their opinions and questions by May 31, 2025, to assist the ASB in developing clear and practical guidance. By contributing, stakeholders can help define how AI tools are responsibly leveraged, ensuring the continued reliability and integrity of appraisal practices in an increasingly technology-driven landscape.

To learn more and have your voice heard, please see links below:.

To submit questions and comments:
https://www.surveymonkey.com/r/ASBComments

To hear Webinar recording:
https://www.youtube.com/watch?v=s4nmn5Xo-qk