AI Related Standards and Ethics FAQ Library
Question: May a member/credentialed designee rely solely on the output of an artificial intelligence (AI) tool when performing a business valuation engagement?
Answer: No. A member/credentialed designee must exercise professional judgment in the development of a valuation and cannot delegate that responsibility to AI. The use of AI must support, not replace, the analyst’s responsibility to obtain sufficient relevant data and apply appropriate valuation methodologies.
Interpretation: Section II (A, C, and F) states AI tools may aid in data gathering, financial modeling, or benchmarking, but the member/credentialed designee remains responsible for ensuring the reliability, relevance, and appropriateness of the data and methods used. Sole reliance on AI output without critical analysis or verification may fail to comply with development standards.
Non-LitigationQ17—Standards Board FAQs as approved by the EAB 06/19/25
Question: Does the use of generative AI to draft portions of a valuation report relieve a member/credentialed designee of their responsibility for the content of the report?
Answer: No. Members/credentialed designees are solely responsible for the content of their work product, regardless of whether generative AI was used in drafting.
Interpretation: Section II (A, C, and F) states generative AI may assist with language generation or formatting; however, the member/credentialed designee must review all output for accuracy, clarity, and compliance with NACVA professional standards.
Non-LitigationQ18—Standards Board FAQs as approved by the EAB 06/19/25
Question: Is a valuation conclusion generated using AI considered a “conclusion of value” or “calculated value” under NACVA/GACVA Professional Standards?
Answer: Not by itself. A value generated by AI is not a conclusion of value or a calculated value unless the member/credentialed designee applies professional judgment.
Interpretation: Section I notes, the use of professional judgment is an essential component of estimating value. AI-generated estimates are considered computational aids. To classify an engagement as a valuation or calculation engagement under NACVA standards, the analyst must select approaches and methods, apply judgment, and take responsibility for the result.
Non-LitigationQ19—Standards Board FAQs as approved by the EAB 06/19/25
Question: If an AI tool is used to identify comparable transactions or suggest valuation multiples, may the member/credentialed designee rely on those outputs without applying professional judgment?
Answer: No. Using AI in an engagement to estimate value does not relieve the member/credentialed designee of the duty to apply professional judgment, which cannot be delegated to an AI tool or any valuation tool. The member/credentialed designee is responsible for independently assessing the credibility of any and all AI-generated outputs, including but not limited to comparable transactions and valuation multiples.
Interpretation: Section I notes, "[t]he use of professional judgment is an essential component of estimating value.”
Non-LitigationQ20—Standards Board FAQs as approved by the EAB 06/19/25
Question: Does the use of AI tools impact the requirement for a member/credentialed designee to obtain sufficient relevant data?
Answer: No. The obligation to obtain sufficient relevant data under Section II(F) remains unchanged. AI may enhance access to or analysis of data, but it does not substitute for the requirement of the adequacy and appropriateness of data sources.
Interpretation: Section II (A, C, and F) notes AI can streamline research but must be used cautiously. The analyst is responsible for evaluating whether the data identified or used by the AI tool meets the standard of sufficiency and relevance.
Non-LitigationQ21—Standards Board FAQs as approved by the EAB 06/19/25
Question: Can a member/credentialed designee use AI-generated industry reports or financial forecasts in a business valuation engagement?
Answer: Yes, provided the member/credentialed designee exercises judgment in assessing the reliability, accuracy, and applicability of such information and discloses reliance upon third-party data where applicable (Section V, C, 1, e).
Interpretation: Section II (A, C, and F) notes, like any other external source, AI-generated reports must be critically reviewed and not accepted blindly. The source, assumptions, and limitations of such reports should be understood and appropriately disclosed.
Non-LitigationQ22—Standards Board FAQs as approved by the EAB 06/19/25
Question: Does the use of AI in a business valuation engagement affect the requirement to maintain work paper documentation?
Answer: No. Work paper documentation requirements under NACVA/GACVA Professional Standards remain unchanged. Any analysis performed by or using AI must be supported by appropriate documentation.
Interpretation: Section II (C, F, and J) states members/credentialed designees must ensure that AI-generated work is reproducible and traceable within the valuation file, especially the sources of data referenced by AI.
Non-LitigationQ23—Standards Board FAQs as approved by the EAB 06/19/25
View the entire Standards and Ethics FAQ Library here.
Note: Membership in the National Association of Certified Valuators and Analysts® (NACVA®) is no longer required to obtain or maintain NACVA’s Certified Valuation Analyst® (CVA®) and/or Master Analyst in Financial Forensics® (MAFF®) credential(s).This policy change was enacted to comply with standards promulgated by the accrediting bodies: the National Commission for Certifying Agencies® (NCCA®), a division of the Institute for Credentialing Excellence™ (ICE™), and the ANSI National Accreditation Board® (ANAB®), with whom we have accredited our CVA credential.
Disclaimer: It is important to note that these questions were prepared by members of the NACVA Standards Board, reviewed and approved by members of the Executive Advisory Board. Although the information contained in the questions has been carefully reviewed and compiled from sources believed to be reliable, the accuracy of the information is not guaranteed. It is neither intended nor should it be construed as legal, accounting, and/or tax advice, nor as an opinion provided by NACVA, or the board members.
