In-person home valuations may soon become a thing of the past, as further inroads are made into the use of AI.

Banks are becoming more comfortable with accepting valuations done using artificial intelligence models that also use image recognition to value properties.

In the past physical inspections by property valuers were the norm, but the industry is quickly moving towards automated and desktop valuations, which now account for almost half (49%) of all valuations.

Virtual valuations are about 88% cheaper than onsite valuations.

CoreLogic analytics executive, Tim Jenner, says banks and insurers are more readily accepting it.

Virtual programs devise a valuation using multiple data points including comparable homes, previous valuations, location and nearby infrastructure including schools.

“With the improvements in machine learning and image recognition (the model is) able to now extract information from photos around the condition of the property, the type of property, how many levels it is, and the construction of the property,” Jenner says.