I recently presented the National Association of Certified Valuators and Analysts (NACVA) a summary of how three different AI platforms perform on judging human versus AI-generated business valuation reports. This got me thinking. How can we collaborate better with AI and various parties in our work environment? The following commentary offers insights to help you and your firm capitalize on AI in multiple applications and provide you with insight on a brand-new program to help business valuers.
Business valuers and AI as an example
An article in BV Wire entitled How is AI currently being used in BV firms? reports a poll of 74 webinar attendees showing business valuation firms using artificial intelligence for the following purposes:
- Industry research 22%
- Summarizing documents 12%
- Client communications and marketing 10%
- Brainstorming and idea generation 10%
- Data analysis 6%
- Drafting valuation report 5%
- Reviewing calculations 3%
- Have not used AI in practice 24%
Firms reported in the article range from sole proprietors to the largest firms in the industry with hundreds of thousands of employees. From my perspective, the key to this data is that 76% of those polled are using Artificial Intelligence (AI). When you consider how widespread is the adoption, who is using it, how well is being used, we can ask whether there is room for collaboration within the group, the immediate organization, across the organization, and with other organizations?
In a recent article in Forbes, they state:
“Complexities behind GenAI can create substantial knowledge gaps between different groups. While technical teams, for instance, may understand how best to leverage AI in their workflows, other departments may not deeply understand how AI can be leveraged to address their unique needs. This mismatch can lead to the underutilization of AI and differing expectations of AI’s benefits. To close these gaps and achieve results with AI, organizations must foster strong, close-knit working relationships and promote collaboration between cross-functional teams.”
This begs the question of how to use AI
Empower your team with AI by finding those in the firm that are ahead of the curve. For example, they may be in IT. It is essential to bridge the gap between those with technical AI expertise and other elements of the business. How can you blend and share? The need for collaboration has only increased. Can IT help HR, sales, marketing, or other parts of the business, as in the commentary above, in business valuation? Valuers have to be careful.
How not to do this
If their report is going to court, the report should not contain any AI hallucinations with made-up data. The courts take a very dim view of phony data.
“A shot heard round the world came with Mata v. Avianca, Inc., 678 F. Supp. 3d 443, 466 (S.D.N.Y. 2023), in which the court sanctioned an attorney for including fake, AI-generated legal citations in a filing and explained why it was unacceptable.”
“Importantly, however, the court’s opinion in Kohls v. Ellison, No. 24-cv-3754 (D. Minn., Jan. 10, 2025), is instructive for litigators. It is a reminder that everything filed with a court – not just legal briefs and other advocacy filings – must be vetted for errors possibly caused by artificial intelligence.”
In the January issue of Business Valuation Update, there is a New York matter in which a damages expert used an artificial intelligence tool to help with his analysis. The court determined his testimony to be unreliable and set standards for admission of testimony and reports based in part on the use of AI. The case is Matter of Weber, 2024 N.Y. Misc. LEXIS 8609; 2024 NY Slip Op 24258, and a case analysis and full court opinion are available on the BVLaw platform.”
The bottom line is to be careful how you use AI
If you are an expert witness or attorney, it needs to be your own work. So, how can you do this right?
If you have the expertise and the best education, demonstrate, guide, and enable others to build on their experiences. Look for ways to provide insights on how AI might be able to help on whatever level seems appropriate. Use it to remove or alleviate mundane tasks, assist with research. Note the area above from the business valuation community. For larger firms, AI is a real opportunity. What about those that do not have those kinds of resources? Look to your professional organizations to help you. In the case of business valuers, look at the example being offered right now by the NACVA. And so, what is the NACVA doing for business valuers?
Transition AI and business valuers
AI has been emerging in various ways in professional settings. As a business valuer in background I have been following various initiatives. I personally use AI to enhance my editing. I feel AI provides my readers with a superior product. However, what are other ways AI could help business valuers? There is so much out there and only so much time, so I really appreciate it when a professional business valuation society steps up and offers various ways to use AI to be more productive, and at the same time assure the business valuer that they are meeting professional standards. What are ways AI can help with technical, research, and in other areas? Read on.
NACVA with Synnet and AI for business valuers
Colin Brown has taken the initiative with his Syncnet, partnering with NACVA to offer a series of free courses to help business valuers explore the bullet point areas identified above. Syncnet uses AI to allow business valuers to be more efficient with industry research, summarizing documents, enhancing marketing, improving communications, brainstorming and generating ideas, data analysis, and in some cases drafting initial reports (again, be careful here if going to court given commentary above). NACVA, a professional society for business valuers, has developed an Advisory Brief on Artificial Intelligence and Machine Learning. In addition, under the direction of CEO Parnel Black, NACVA has initiated AI Data University and is currently Beta testing ways to help members with AI. Here is the latest update on these free courses. This offers in part the following commentary.
This "big splash" event is designed to introduce the transformative potential of Artificial Intelligence (AI) in valuation and financial forensics. It aims to make attendees comfortable integrating AI tools into their practice. This presentation will lay the groundwork for a broader NACVA initiative to educate members on AI, including articles, data sources, and a webinar series.
The presentation will overview key AI concepts and demonstrate practical applications using real-world scenarios relevant to valuation and forensic professionals. The presenters will explore how AI can be leveraged to enhance efficiency, accuracy, and decision-making across various tasks, including:
- Building Custom AI Valuation Assistants:
- AI for Trial and Mediation Success:
- AI for Compliance and Report Review:
- Boosting Productivity with AI in Microsoft 365:
This introductory session is just the beginning. It will provide attendees with a foundational understanding of AI and its potential to revolutionize their practices. Think of this as a preview of the comprehensive AI resources NACVA will be rolling out, designed to empower you with the knowledge and skills to integrate AI into your daily work confidently. Stay tuned for upcoming articles, in-depth webinars, and access to curated data sources to make you an AI-savvy valuation and forensics professional.
If you want to learn more about my publications on collaboration, conflict resolution, or enhancing your servant manager skills, which focus on leading by serving and understanding the needs of your team members, feel free to reach out