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https://theconversation.com/use-of-ai-in-property-valuation-is-on-the-rise-but-we-need-greater-transparency-and-trust-240880>
"New Zealand’s economy has been described as a “housing market with bits tacked
on”. Buying and selling property is a national sport fuelled by the rising
value of homes across the country.
But the wider public has little understanding of how those property valuations
are created – despite their being a key factor in most banks’ decisions about
how much they are willing to lend for a mortgage.
Automated valuation models (AVM) – systems enabled by artificial intelligence
(AI) that crunch vast datasets to produce instant property values – have done
little to improve transparency in the process.
These models started gaining traction in New Zealand in the early 2010s. The
early versions used limited data sources like property sales records and
council information. Today’s more advanced models include high-quality
geo-spatial data from sources such as Land Information New Zealand.
AI models have improved efficiency. But the proprietary algorithms behind those
AVMs can make it difficult for homeowners and industry professionals to
understand how specific values are calculated.
In our ongoing research, we are developing a framework that evaluates these
automated valuations. We have looked at how the figures should be interpreted
and what factors might be missed by the AI models.
In a property market as geographically and culturally varied as New Zealand’s,
these points are not only relevant — they are critical. The rapid integration
of AI into property valuation is no longer just about innovation and speed. It
is about trust, transparency and a robust framework for accountability."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
