Rethinking How We Become Competent in the Age of AI

Let’s dig into this. I have been going down the AI rabbit hole even deeper lately. My little cottontail isn’t even sticking out of the hole anymore. One of the things I am finding is just how beneficial AI can be to report development. I’ve said it before and I’ll say it again: will AI replace appraisers? Yes, AI will replace the appraisers who are not using and understanding AI.

Lately, it is a rare case that I don't use AI on a specific assignment to help write better reports, gain more support, and have a trusted advisor when running into challenges. This brings me to a major question: how relevant is the USPAP Competency Rule these days?

The Three Pillars of Competency

The USPAP Competency Rule basically tells us three things: we need to be competent to perform the assignment, or we need to disclose our lack of competency, acquire the necessary knowledge, and document those steps in the report. If we can't do that, we must withdraw.

In the past, ninety-nine out of one hundred appraisers would tell you that if you aren't competent, you need to go find another appraiser who is, work with them, and then cite their significant professional assistance. But friends, this is where things are changing.

A New Path to Knowledge

I recently held a meeting with a group of appraisers, and it was heartwarming to hear their stories. Each shared specific examples of how they used AI to solve complex challenges that were completely out of their usual wheelhouse.

I am not suggesting that the Competency Rule itself has changed. All of this is already accounted for in USPAP. My suggestion is that we need to rethink how we achieve that competency.

A few years ago, I accepted an assignment where the scope of work suddenly expanded into something I was not competent to do. I had to inform the client, reach out to a top expert, pay him thousands of dollars, and disclose his significant assistance in my report to stay compliant. If I were doing that exact same assignment today, I don't know that I would have hired that individual. With the proper use of AI—and I don't mean treating it like Google and blindly copying its first answer—an appraiser can acquire the necessary competency themselves.

You still need to reveal your lack of competency upfront, and you still need to take the proper steps to become competent. I just don't think those steps always require hiring someone else anymore. Our approach to mastering the unknown is shifting, and it is all thanks to the magnificent things we can do with artificial intelligence.

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