The International Property Tax Institute (IPTI) was commissioned by the Property Valuation Services Corporation (PVSC) of Nova Scotia, Canada to carry out research into the potential that artificial intelligence (AI) offers in relation to the preparation of valuation assessments for property tax purposes.
IPTI’s research culminated in the preparation of a White Paper entitled “The Potential of Artificial Intelligence in Property Assessment” which has been peer reviewed by a panel of eminent international experts and is now being published for consideration by the wider profession of property tax assessors and others with an interest in this rapidly-developing area of machine- learning technology.
The intention of the White Paper is to provide a first step towards the production of a standard on the use of AI in property assessment administration.
The White Paper presents a high-level summary of some of the most common AI methods, including model-based methods such as “expert systems” and adaptive learning methods, including Classification and Regression Trees (CART), Random Forests, Neural Networks, and Gradient Boosting Methods (GBM).
Using AI may offer a number of advantages including:
- Improved accuracy
- Greater objectivity
- Enhanced speed
- Reduced cost
However, AI also brings a number of potential issues including:
- Challenges in “explainability”
- The need for advanced technical expertise
- Limited appraiser interaction and direction
- Potential for over-fitting
The White Paper takes an objective look at both the opportunities and benefits that the use of AI may bring in supporting the valuation of properties for property tax purposes, and also addresses some of the technical and other challenges that need to be addressed.
IPTI concludes that AI offers considerable potential benefits and warrants further careful consideration by the property assessment industry to develop appropriate guidance and standards.
A copy of the White Paper is available via the link below:
Compliments of the International Property Tax Institute – a member of the EACCNY.