The Red Book's Blind Spot
- James W.
- 3 days ago
- 1 min read
LinkedIn Post 02: The Red Book's Blind Spot
The RICS Valuation—Global Standards (Red Book) is comprehensive. It addresses market comparables, income approaches, cost approaches, valuation principles, professional ethics.
One thing it doesn't address: AI-generated comparable evidence.
This isn't an oversight. It's a timing issue—synthetic comparables emerged after current Red Book guidance was written. But timing created a governance gap.
What makes synthetic evidence "competent"? The Red Book doesn't say. How do you validate algorithm output? No guidance. What must you disclose about synthetic comparables? Silent.
The gap exists. Valuers operate in it. Someone will eventually have to close it.
Better the profession does it than courts.
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