Aipedia: Surveyors and valuers

AI clauses in surveyors' terms of engagement

Aipedia, by the Apex broking team · Last reviewed 2026-10-27

RICS standard 4.3 requires surveyors to tell clients in writing, before work starts, when and why AI will be used. Terms must also cover contesting AI use, redress, opt-out where applicable and, if available, the extent of PI cover for AI use.

Part of: AI in surveyors and valuers

In short

Since 9 March 2026, RICS members and regulated firms must explain AI use in writing, in advance, wherever the standard applies. Standard 4.3 says the terms must cover when and why AI will be used, how a client can contest its use, how redress works and, where applicable, how to opt out. They must also state, "if available", the extent of PI cover for the firm's use of AI systems. A generic "we may use technology" clause is unlikely to be enough. The PI statement needs care, because overstating cover could mislead clients.

What standard 4.3 requires

The RICS professional standard on responsible use of AI in surveying practice became mandatory on 9 March 2026. Section 4.3 deals with terms of engagement. Where AI outputs have a material impact on the service, the client must be told in writing, in advance, when and why AI will be used. The terms must cover:

the processes for contesting the use of AI;
redress;
opt-out, where applicable;
"if available", the extent of PI cover for the firm's use of AI systems.

Section 4.4 adds that, on request, the firm must provide written information on the AI system type, how it works and its limits, due diligence, risk management and reliability decisions. Your terms can say how such requests are handled.

Sample wording points

These are drafting points to discuss with your legal adviser, not template clauses:

When: list the services or stages where AI is used, such as drafting report text, transcribing site notes, selecting comparables or measuring from scans.
Why: explain the purpose in plain terms, such as speed, consistency or checking.
Human responsibility: confirm that a named, appropriately qualified surveyor reviews material outputs and is responsible for the advice.
Data: say whether client data will be put into AI systems and ask for the express written consent standard 3.1 requires.
Contesting: give a route for the client to question or object to the use of AI, and a timescale for a response.
Opt-out: state where the client can opt out and any effect on fee or timing.
Redress: point to your complaints procedure and any redress scheme you belong to.
PI cover: describe the position accurately; see below.
Explanations: say how to request the 4.4 information.

The PI statement: handle with care

The "if available" wording reflects a real difficulty: many PI policies, including those on the RICS Approved Minimum Wording, do not mention AI. The minimum wording provides full civil liability cover and states that cover is not restricted solely because a computer system is used, but excludes losses from cyber acts, computer system failure and breach of data protection law under the IUA 04-017 endorsement.

A cautious statement might say that the firm holds PI on RICS-compliant terms, that the policy does not exclude claims merely because AI was used, and that cover is subject to the policy terms, limits and exclusions. Avoid promising that every AI-related loss is covered. Check the statement with your broker before using it, and review it at each renewal. Our guide to the RICS wording and AI claims and what the RICS AI standard means for PI explain the position in more detail.

Why the terms matter in a claim

Clear terms help in three ways. They show compliance with 4.3 if RICS reviews the file. They define the scope of the service, which shapes the duty a court will measure the surveyor against. And they reduce the chance of a client saying they would have chosen a different service had they known AI was involved. CMS has noted that the standard is likely to inform how negligence claims against surveyors are judged, so missing or vague AI terms may weaken a defence. Broader contract points are covered in our guide to AI contract clauses and indemnities.

Illustrative: a firm uses AI to draft report text but its terms do not mention it. After a missed-defect claim, the client argues they were never told and would have chosen another firm. The underlying negligence question is unchanged, but the firm now also faces a conduct complaint about 4.3 and a weaker position on the facts.

How Apex helps

Apex arranges PI for surveyors and valuers. A broker can review how your policy treats AI-assisted work and help you describe your cover accurately in your terms. See the AI in surveying and valuation hub, the compliance checklist and AI chatbots and instructions for where notice must appear first.

Sources

Frequently asked

Do I have to mention PI cover for AI in my terms?

Standard 4.3 requires terms to state, "if available", the extent of PI cover for the firm's use of AI systems. Describe the position accurately and cautiously, without promising that all AI-related losses are covered, and check the wording with your broker.

Can a client refuse to let me use AI?

The terms must set out processes for contesting AI use and, where applicable, opting out. You decide where opt-out is practical and explain any effect on fee or timing. Record the client's choice on the file.

Is a general technology clause enough?

Probably not. Standard 4.3 requires advance written notice of when and why AI will be used, plus contesting, redress and opt-out where applicable. A vague clause about using technology is unlikely to meet that, and may not help in a dispute.

Do existing clients need new terms?

Where you start using AI with a material impact on a continuing service, the client needs advance written notice. Updating standing terms or issuing a supplementary letter before the AI-assisted work starts is a sensible approach.

Check your PI covers how you use AI

Tell us about your firm and the work you do. A broker will review how your current PI treats AI-assisted work, or arrange new cover. No fee for a quote. Or call 0117 325 0027.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information about how AI is used in the profession and how insurance may respond. It is not legal, regulatory or insurance advice on your circumstances, and it does not guarantee that cover will be available or on what terms.