Artificial Intelligence (AI)

Question 1

Explain you’re understanding of the Harris Debate

Answer 1

Annual debate organised by RICS covering ethical issues chaired by Jonathan Harris, former RICS president

Question 2

What was discussed in the 2024 Harris debate?

Answer 2

Focused on Ethical issues of AI and its impact on valuation

Question 3

What is your view on the use of AI for the purposes of property valuation?

Answer 3

• Refer to 2024 Harris Debate and RICS draft consultation paper
• Could enhance or have a negative impact of various elements of the valuation proccess.
• At this stage of its early development and into the future, it will always be critical to have human oversight to ensure due dilligance is met in line with ROC rule 3

If follow up question….
Pros
* Could enhance various elements of the valuation process.
* (E.g crime, satellite imagery, regional ecenomic factors).
* (It could be utilised to collect data more efficiently)

Cons
* it could compromise various elements of the valuatiion proccess
* is a learned model with the danger of missing fast moving/nuanced market trends
* It does not do the traditional valuer knock knock

Question 4

What are the ethical concerns with the adoption of AI for the purposes of valuation

Answer 4

• AI relies on data and if the data is inaccurate, it will produce a flawed answer
• lack of transparency - to comply with REDBOOK, it is requirred to have transparency on how the valuation was reached
• Perception of Blackbox - we dont fully understand how AI make a decision

Question 5

What wider impact do you feel AI will have on the property industry?

Answer 5

1. Enhanced property management
2. Ability to potentialy predict market trends
   Streamlining transactional paperwork i.e buying/selling and detecting fraud
3. Urban planning and development
4. Risk management
5. Allow for more efficient construction industry

Question 6

What is the RICS doing to tackle challenges posed by AI?

Answer 6

• It has already changed the redbook VPS 5 to include AVM must be subject to valuer judgement
• 2024 Harris debate
• Draft consultation on (DRAFT) PS - Responsible Use of Artificial Intelligence, 1st Edition - Global between Mar-Apr 25

1. It places heavy focus on issues with GDPR
2. Ensure appropiate staff training
3. Have a register detaling use of AI
4. Agree scope of AI with client
5. Analyse how use of AI will impact sustainability
6. Be aware of Bias
7. Ensure due diligance