HT - IMPACT OF AI Flashcards
Please explain your understanding of the Harris Debate?
The Harris Debate is organised annually by the RICS and provides a platform to
address ethical concerns in the field of surveying and valuation.
The debate honours Jonathan Harris, a former RICS president known for his
contributions to professional development and education.
What was discussed at the Harris Debate 2024?
In 2024 the debate focussed on the theme of Ethics in the Age of Artificial
Intelligence and its impact on Valuation Practices.
The debate explored the ethical implications of incorporating artificial intelligence into
valuation and surveying as AI is becoming more integrated in these fields.
What is your view on the use of AI for the purposes of property valuation?
Artificial Intelligence does have the potential to offer greater accuracy and efficiency
when carrying out a valuation.
AI algorithms are able to evaluate other comparable properties and pinpoint an
estimated valuation.
Applications are currently availble to take into account factors such as satellite
imagery, crime rates, market trends and regional economic factors.
Current drawbacks of AI are that site specific abnormal details such as property
condition and special values cannot be considered.
There is also a susceptibility to a reliance on bad data which can reduce the
accuracy of the AI generated inputs.
I do feel AI can offer advantages with providing access to a wide array of data and
greater efficiencies when used as a data collection and processing tool.
I feel in its current stage of development and into the future, it will always be critical to
have significant input from a human appraiser standpoint in order to undergo rigorous
checks and due diligence.
What are the ethical concerns with the adoption of AI for the purposes of property
valuation?
It is important to consider that AI algorithms rely on data and if this data is inaccurate,
incomplete or intentionally weighted following bias data input, this can dramatically
skew results in the favour or to the detriment of the parties involved.
There are also great issues around transparency of the data input and analysis with
operators of AI not always fully cognisant of how results have been generated.
For a valuation to be compliant with RICS Red Book Standards, transparency of how
the value has been determined is key.
There is a perception that AI models are ‘black boxes’ where even creators can’t fully
explain how decisions are made, therefore to run a valuation with sole AI input is not
compliant with current regulations and industry standards.
What wider impact do you feel AI will have on the property industry?
Artificial Intelligence has the potential to play a significant role in the industry with key
advantages including:-
1. Enhanced Property Management - Automation of maintenance scheduling,
analysis of tenant behaviours, improved energy efficiency through smart
building technologies with AI monitoring systems such as lighting, heating and
security in real time.
2. Data-Driven Decision Making - AI has the potential to analyse vast amounts
of market data to predict trends, assess property values, and identify
investment opportunities.
3. Streamlining Transactions - AI can simplify the buying, selling, and leasing
processes by automating paperwork, ensuring compliance, and detecting
fraud.
4. Urban Planning and Development - AI can assist city planners and
developers by analysing environmental, social, and economic data. It can
simulate the impact of new developments, optimising infrastructure planning
and sustainability efforts.
5. Risk Management – AI can play a pivotal role in identifying and mitigating
risks, such as market volatility, structural issues in properties, or potential
legal complications. Predictive algorithms help stakeholders anticipate and
mitigate these risks.
As AI adoption grows, the property industry is likely to see a mix of efficiency gains
and cultural shifts, emphasising collaboration between technology and human
expertise.
What impact will AI have on the construction industry?
A large overhead for the majority of Main Contractors is the estimating process which
can be very onerous and require weeks of input from skilled estimators.
AI can assist the estimating process by supporting estimators with data collection
and processing when reviewing large tender packs made up of contract documents,
drawings, specifications and legal documents.
Site safety AI powered cameras can scan the site to detect potential safety hazards
for example if a worker forgets to wear their helmet an alert can be generated to
advise the site management to intervene.
AI driven sensors can be placed on site plant and machinery to predict when
maintenance inspections and replacements should be undertaken. Plant and
machinery down time can cause significant cost and delays which AI can play a part
in reducing.
AI technology can use energy modelling software to adjust lighting, HVAC and
security systems to reduce operating costs and improve energy efficiency.
Automation of construction tasks is also being carried out for repetitive and labour
intensive tasks such as bricklaying, excavation, and welding.
