UAD 3.6 and AI: The Signature Is Still Yours
Two subjects dominate appraiser conversation at the moment: the coming UAD 3.6 rollout and the use of artificial intelligence in appraisal work. Magda Pretorius, Risk & Claims Analyst at LIA Administrators & Insurance Services, has published guidance on each. Both are short, practical, and worth ten minutes of your morning.
UAD 3.6: your limiting language still belongs in the report
The new forms change where your commentary goes, not whether you need it. The practical advice is to carry your familiar disclaimers into the Commentary fields rather than attaching a separate addendum — in particular that an appraisal is an observation and not a home inspection, that the intended user is the lender or client rather than the buyer, seller or borrower, and that specialized concerns such as mold, pest damage or environmental conditions belong with the appropriate specialist.
AI: the tool is not the appraiser
Decide assignment by assignment, and check that your client agreement does not prohibit it. Three risks are worth naming:
- Confidentiality. Public chatbots and free platforms commonly train on what users type into them. Putting assignment data into one is a USPAP confidentiality problem, not merely an untidy habit.
- Credibility. Anything a tool produces has to be independently verified before it supports a conclusion. The responsibility sits with the appraiser, not the software.
- Recordkeeping. Your workfile should show how, and to what extent, you verified what the tool gave you.
The common thread is the one that matters most for Arkansas appraisers: new forms and new tools, but the same signature at the bottom of the report.
Read them: UAD 3.6 and Artificial Intelligence (AI), both in Magda’s Message at liability.com.
Shared for members’ information. ARCOA is not affiliated with LIA, and this summary is not legal or compliance advice — read the originals, and check USPAP and your own client agreements.