05/01/2026
Advisory Opinion 41 Adopted: Use of Technology in Appraisal Assignments
The Appraisal Standards Board adopted AO-41 on Apri 23, 2026, addressing the appraiser's responsibilities under USPAP when technology is used in an assignment. AO-41 covers spreadsheets, regression software, AVMs, machine learning, and generative AI.
Key points for North Carolina appraisers:
A tool cannot comply with USPAP. Compliance rests solely with the appraiser. The decision whether to use a tool, rely on its output, and whether that output supports credible results is the appraiser's in every assignment.
Tool output is information, not assignment results. Output from generative AI, an AVM, a regression model, or a vendor-published rate must be evaluated for relevance and credibility before the appraiser decides whether to rely on it.
Disclosure is not automatic. USPAP does not require disclosure of every tool used. Disclosure is required when omitting it would make the report misleading or when intended users need to understand how the output was incorporated. Formatting, grammar, and spell-check tools do not trigger disclosure.
Client restrictions and required tools are evaluated against the SCOPE OF WORK RULE. If a client condition prevents credible results, the appraiser must decline, withdraw, or modify scope.
Confidentiality obligations apply fully to tool use. Before entering confidential information into any tool, the appraiser must confirm doing so does not violate the ETHICS RULE. Knowingly using a system that may improperly disclose or transmit confidential information may constitute gross negligence.
Workfile requirements depend on the tool's role. If output was relied upon, the workfile must show how, including relevant prompts, the output itself, and the appraiser's analysis.
NCPAC submitted written comments during the exposure draft process and will develop educational resources to support members in applying AO-41. The full text is available at appraisalfoundation.org.
