AI Guidance Issued By Federal Court

Source: AVAA

Artificial intelligence (AI) is rapidly changing valuation professional practice. From analysing market data and summarising documents to assisting with report drafting, AI offers valuers genuine opportunities to improve efficiency. For those acting as expert witnesses, however, recent guidance from the Federal Court of Australia makes one point abundantly clear: while AI may assist the process, it cannot replace the expert.

The new Federal Court’s Generative Artificial Intelligence Practice Note (GPN-AI) acknowledges the growing role of AI in litigation and accepts that it can reduce costs and improve efficiency. At the same time, it reinforces a fundamental principle that has always underpinned expert evidence. The expert witness, not the technology, is personally responsible for every opinion expressed before the Court.

That responsibility extends well beyond simply preparing the valuation report. Every fact, assumption, methodology and conclusion made by the valuer must be independently assessed and capable of being explained under cross-examination. AI may produce a convincing narrative, but it cannot exercise professional judgement or evaluate whether an opinion is reasonable in the circumstances.

The Practice Note also introduces an important expectation of transparency. Where AI has materially assisted with analysing evidence, preparing substantive parts of an expert report, or generating material that may influence the weight of the evidence, its use should be disclosed. The Court is not concerned that AI has been used. Rather, it expects parties to be open about how it has been used and to ensure the expert remains accountable for the final product.

These developments are unlikely to surprise Australian valuers. They closely mirror the principles already reflected in the professional standards published by the Auctioneers and Valuers Association of Australia (AVAA) and provide the framework in which certified valuers with the respected AVAA Certified Valuer (CVAu) credential work.

The AVAA Professional Standard 7 – Expert Witness & Tribunal Practice recognises that acting as an expert witness is fundamentally different from preparing a valuation for a client. The Standard reinforces that a valuer’s overriding duty is to the court or tribunal, not to the instructing solicitor or client. It requires expert opinions to be objective, evidence based and confined to the valuer’s genuine area of expertise.

It also emphasises the need to clearly distinguish facts from assumptions, disclose limitations, maintain appropriate records and avoid becoming an advocate for either party. Above all, the Standard promotes expert evidence that is capable of withstanding objective professional and judicial scrutiny.

The Federal Court’s approach to AI also aligns closely with AVAA Professional Standard 8 – Artificial Intelligence in the Preparation of Valuation Reports. Rather than discouraging the use of AI, the Standard provides a practical framework for using it responsibly. AI may assist with research, market analysis, data collection and drafting, but responsibility for the valuation always remains with the valuer.

Under AVAA Professional Standard 6, every AI-generated output must be critically reviewed, verified against reliable evidence and supported by independent professional judgement before it forms part of a valuation report. The Standard also addresses confidentiality, warning valuers to carefully consider the risks of uploading client information to publicly accessible AI platforms, and encourages disclosure where AI has materially assisted in preparing the report.

Taken together, the Federal Court Practice Note and the AVAA Professional Standards provide a consistent roadmap for professional practice. They recognise that AI has an important place in modern valuation work while making it clear that technology does not diminish professional responsibility.

As AI continues to evolve, the qualities that distinguish an effective expert witness remain unchanged. Independence, impartiality, technical competence and sound professional judgement cannot be automated. They remain the foundation of credible expert evidence and the reason courts continue to rely upon qualified valuers to assist in the administration of justice.

If you’re interested in this topic, don’t miss the AVAA Perspectives Webinar – Valuers as expert witnesses that’s being held on 19 August 2026.  You can register online today.