Melanie
Modica, ASA
Owner, Principal, Modica Fine Art LLC
Abstract: In the dynamic landscape of asset valuation, the reliability and authenticity of appraisal reports are paramount. Investors, financial institutions, and stakeholders depend on these reports to make informed decisions. However, with the rise of advanced technologies, including AI, Artificial Intelligence-driven models like ChatGPT, questions about authorship and reliance on automated systems have become increasingly pertinent. This article delves into the critical importance of verifying whether an appraiser authored a report or relied on ChatGPT, emphasizing why claiming authorship is an essential aspect of maintaining trust and accuracy in the valuation process.
Traditionally, appraisals were primarily conducted by appraisers who would visit properties, assess various factors, and compile comprehensive reports. However, as technology advanced, the integration of AI into the appraisal process has become more prevalent. Automated systems, like ChatGPT, have the capacity to analyze vast amounts of data and generate detailed reports in a fraction of the time it would take a human appraiser.
While the efficiency gains are evident, the ethical implications and potential consequences of relying solely on AI-generated content in appraisal reports necessitate a closer examination of the authorship of such reports.
Credibility is the bedrock of any valuation report. Stakeholders rely on these reports to make decisions involving substantial financial investments. When an appraiser claims authorship of a report, it signifies accountability and expertise. Knowing that a qualified human professional has conducted the analysis instills confidence in the accuracy and reliability of the findings.
On the contrary, if an appraisal report is generated entirely by an AI model like ChatGPT, and the appraiser fails to disclose this fact, it could lead to a breach of trust. Stakeholders may question the authenticity of the report and the competency of the appraiser. Thus, transparency in authorship is crucial to maintaining the integrity of the valuation process.
While AI models have demonstrated remarkable capabilities in various fields, they are not infallible. Appraisers who solely rely on AI-generated content without thorough verification and oversight may inadvertently introduce errors or biases into their reports. Additionally, AI models lack the nuanced understanding and contextual awareness that human appraisers bring to the table.
Failure to disclose the use of AI in the appraisal process may lead to a misrepresentation of the appraiser's skills and qualifications. This misrepresentation not only poses a risk to the accuracy of the valuation but also undermines the trust that clients place in the expertise of the appraiser.
The appraisal profession is subject to a myriad of regulations and standards designed to protect the interests of all parties involved. Misrepresenting the authorship of an appraisal report can have legal consequences. Many regulatory bodies mandate disclosure of the methods and tools used in the valuation process. Failing to disclose the use of AI models like ChatGPT may result in disciplinary action and damage to an appraiser's professional reputation.
Moreover, financial institutions and investors may have specific requirements regarding the qualifications and methodologies employed by appraisers. Non-disclosure of AI usage could lead to non-compliance with these requirements, potentially jeopardizing the acceptance of the appraisal report in critical financial transactions.
The Need for Professional Standards and Guidelines
As the integration of AI into the appraisal process becomes more prevalent, there is a growing need for profession-wide standards and guidelines. These standards should address the ethical considerations surrounding AI usage in valuation, emphasizing the importance of transparency and disclosure. Appraisers should be encouraged to clearly state whether they authored a report or relied on AI models for content generation. This transparency not only ensures compliance with regulations but also fosters a culture of accountability within the industry.
The valuation profession thrives on trust. Clients, whether individual homeowners or large corporations, trust appraisers to provide accurate and unbiased assessments of property values. This trust is easily eroded when there is a lack of transparency regarding the methods employed in the appraisal process.
By openly disclosing whether an appraisal report was authored by a human appraiser or generated with the assistance of AI models like ChatGPT, appraisers can build trust with their clients. This transparency demonstrates a commitment to providing accurate and reliable information, even if technology plays a role in the analysis.
To facilitate a smooth transition toward greater transparency, it is essential to educate stakeholders about the integration of AI into the appraisal process. Clients, real estate agents, and investors should be aware of the potential benefits and risks associated with AI usage in valuation. This awareness enables them to make informed decisions and reinforces the importance of appraisers disclosing their methodologies.
In the ever-evolving landscape of real estate and asset valuation, the authenticity of appraisal reports remains a cornerstone of trust and reliability. Verifying whether an appraiser wrote a report or relied on AI models such as ChatGPT is not just a matter of ethical consideration; it is essential for maintaining the integrity of the valuation process.
Claiming authorship is more than a professional courtesy, as it is a commitment to transparency, accountability, and the highest standards of practice. As the profession grapples with the integration of AI, establishing clear standards and guidelines for disclosure is paramount to ensuring the continued trust of stakeholders and the longevity of the appraisal profession. Ultimately, a collaborative effort from professionals, regulatory bodies, and technology developers is necessary to strike the right balance between innovation and ethical practice in valuation.
Now that the article Conclusion has been reached, this is the perfect time to share that I did not write any of the above content, nor did I write the subheading titles. I used ChatGPT to write this article with the single prompt of “Write a 1100-word article about the importance of verifying an appraiser wrote a report or relied on ChatGPT for the content and why claiming authorship is important.”
The free program immediately began producing the content that I was watching develop. I quickly decided to time the program so see how long it took to write the article. I began counting as I opened my timer on my phone. And, as soon as I opened and started the timer, the article was finished being written. I had counted to 22 seconds.
Editing the above content was extremely limited on purpose. For the sake of transparency here, I deleted the word “human” as it was first written “human appraisers” and I also deleted “real estate” to include all appraisal disciplines. I also added the words “Artificial Intelligence” for the explanation of “AI”. Lastly, I exchanged the phrase of “real estate industry” for “appraisal profession”, along with a few exchanges of “industry” for the appropriate term of “profession.”
And that’s it!
I am not advocating for the use of artificial intelligence in appraisal or appraisal review writing, nor am I advocating for its exclusion. I advocate for the importance and the need of stating the truth regarding the creation of an appraisal or appraisal review report, and if report content was solely created by a credentialed appraiser human person, or not.
The use of AI for written content is part of our society now and part of many professions. People are using AI generated content in multitudes of ways to lessen work time, instantly complete tasks, and so much more. Extensive analyses of data are created in seconds just like the above article I did not write. Even educational professionals are using AI to generate student performance reviews in their report cards that are sent home to parents. The AI programs are able to generate detailed content and personalized messaging—it even interjects compliments in performance reviews, as if it knows the importance of providing positive messages along with criticisms.
The standard of care for professional appraisers in the United States is the Uniform Standards of Professional Appraisal Practice (USPAP). As appraisers, we are required to state if we inspected a subject property or not, and if we relied on others for significant appraisal assistance or not, and even that our analyses, opinions, and conclusions are developed and prepared in compliance with USPAP.
So, should we discuss the need for claiming the content composed in an appraisal or appraisal review report was solely created by us or not? We should.
Melanie Modica, ASA, ARM, ISA AM, CFLC, Modica Fine Art LLC, in Houston, Texas, is a board member of the ASA Houston Chapter, where she has served as President, Secretary, Director, and as Chair for Personal Property and for ARM. She serves the ASA ARM discipline as an instructor; a member of the Committee and Board of Examiners; Chair of the Education Subcommittee; and past editor of the ARM Journal. Internationally, she served ASA as Chair of the International Appraisers Conference Personal Property Planning and the Personal Property Committee Membership. She has presented at numerous ASA International Conferences and was a 2020 ASA Appraiser of the Year. Melanie holds UCI certificates in Fine and Decorative Arts Appraisal Studies and in Specialized Studies Program of Connoisseurship in Fine Arts.