I’m not the rocket scientist in my family (that title belongs to my uncle Richard). But here’s what I see clearly. The future of AI in valuation will be defined by the 3R Framework – Replication, Risk and Reinvention.
Replication
What if appraisers use AI just to crank out the same reports you’ve seen for decades? Same report format, no better no worse. Just faster. That’s efficiency without evolution.
What if AI becomes the excuse to keep doing things the way they’ve always been done? Instead of addressing the shortage of new valuation professionals, we lean on automation to mask it. The problem isn’t solved, it’s deferred. In the short run, it feels efficient; in the long run, it cements inertia. And inertia has a price tag.
Risk
Here’s the dark side. What if, instead of raising the valuation bar, AI ironically lowers it?
Appraisers cutting corners. Faster reports, thinner insight. Copy-paste acceleration.
Reviewers’ job get harder because of data uncertainty breeding doubt. Always questioning what areas of the report they can truly trust.
Reinvention
But there’s another path. AI becomes the multiplier of appraiser judgment. Fee appraisers move from report producers to strategic creators with AI time savings. Banks gain deeper analysis, sharper context and better decisions.
For example, instead of a “typical” retail appraisal, AI scans external sources to assess a subject’s tenant credit, track industry trends and flag occupancy risks. SWOT becomes sharper with strengths in anchor tenants, weaknesses in at-risk retailers, opportunities in market gaps and threats from industry shifts.
Instead of untethered broker statistics floating in highest and best use, AI creates space for deeper analysis. Like how the subject truly fits within its specific market.
Lead Through Collaboration
Together we can shape how AI integrates. Guarding against shortcuts, encouraging consistency and elevating the role of valuation from compliance exercise to strategic insight.
This is the time for fee and chief appraisers to step into leadership and collaboration. AI isn’t the answer. It’s the amplifier. The question is: what do you want it to amplify, complacency or leadership?
But then again, I’m no rocket scientist.