ASB Releases Second Exposure Draft on Technology Use in Appraisal Assignments

The Appraisal Standards Board (ASB) released a Second Exposure Draft of Proposed Advisory Opinion 41 (AO-41), Use of Technology in an Appraisal or Appraisal Review Assignment.

The proposed advisory opinion provides guidance on how appraisers can responsibly incorporate modern technology-such as automated valuation models, statistical software, and artificial intelligence-into appraisal practice while remaining compliant with The Appraisal Foundation's Uniform Standards of Professional Appraisal Practice (USPAP).

Purpose of the Draft

The exposure draft clarifies how existing USPAP obligations apply when appraisers use tech tools during the development and communication of assignment results. While technology can improve efficiency and help manage large volumes of data, the proposal emphasizes that professional judgment and responsibility remain with the appraiser.

Key themes addressed in the draft include:

• Appraiser responsibility-Technology can assist in analysis, but it cannot replace the appraiser's independent judgment or responsibility for credible assignment results.
• Competent use of tools-Appraisers must understand what a technological tool does, recognize its limitations, and evaluate whether its output is appropriate for the assignment.
• Professional judgment-Appraisers must critically evaluate technology-generated outputs rather than rely on them without validation.
• Confidentiality and record-keeping-Appraisers must protect confidential information and maintain work files that support their analyses, including documentation of any tool outputs relied upon.

Refinements Since the First Exposure Draft

The second exposure draft includes targeted revisions in response to public feedback on the initial proposal. The updates focus primarily on improving clarity and consistency with existing USPAP concepts. Notable refinements include:

• Clarifying expectations around what it means for an appraiser to "understand" a technological tool.
• Providing clearer explanations of how technology may function as a tool, data source, or analytical aid.
• Refining terminology related to AI and automated systems.
• Reinforcing that technology does not replace the appraiser's professional judgment.

The ASB noted that these revisions do not change the overall direction or conclusions of the original proposal but aim to improve precision and transparency.

Potential Updates to Existing Guidance

If adopted, Advisory Opinion 41 could eventually replace or consolidate existing USPAP guidance related to technology, including:

• Advisory Opinion 18, Use of an Automated Valuation Model (AVM)
• Advisory Opinion 37, Computer Assisted Valuation Tools

Public Comment Period

The exposure draft is open for public comment through April 13, 2026. Feedback helps inform the ASB's final decision.

Submit public comments here: https://www.surveymonkey.com/r/ASBComments.

You can also review the full Second Exposure Draft of Proposed AO-41 to learn more.