RICS global standard on responsible use of AI - Potential PII Implications
There’s no denying that Artificial Intelligence (AI) is transforming the way we all work, but with innovation comes responsibility. The Royal Institute of Chartered Surveyors (RICS) has announced its first global standard for the responsible use of AI, effective 9 March 2026. This landmark guidance will impact how firms operate and how they manage risk through Professional Indemnity Insurance (PII).
Surveyors
Artificial Intelligence
Risk Management
Business Protection
Professional Services
Insurance Insights
Gracie Fletcher
Gracie is an Associate Director at Forte Brokers, specialising in professional indemnity, D&O, and cyber insurance. She’s passionate about challenging complacency in the insurance market and securing fairer, stronger protection for professionals.
She's also passionate about spicy margaritas and skiing.
What’s Changing?
The new standard sets out clear expectations for governance, transparency, and accountability when using AI tools.
Key requirements include:
– Written disclosure to clients when AI is used.
– Documented risk assessments and governance frameworks.
– Professional oversight.
– Training and upskilling on AI risks and limitations.
Implications for PII
If an AI tool produces an error that leads to client loss, the responsibility remains with the professional; not the technology. PII policies should respond, provided the claim falls within the scope of cover, and subject to the terms and conditions of the wording.
Current PII wordings often do not explicitly address AI-related errors. This creates potential coverage gaps similar to “silent cyber” exposures. In anticipation of these new guidelines, we could see Insurers approaching the RICS with a view to introduce specific AI exclusions or endorsements to the RICS minimum terms and conditions.
Insurers may begin to ask questions like:
– How is AI used in your workflows?
– Do you have documented governance and risk controls?
– Are you following RICS standards?
Preparing for March 2026
Governance
– Maintain an AI risk register.
– Document procurement and system oversight.
Communication
– Include AI disclosure in engagement letters.
– Offer opt-out options where appropriate.
Training
– Upskill on AI risks, bias, and ethical use.
– Ensure professional judgement remains central.
To Summarise
The new RICS AI standard is a turning point for the surveying profession. Compliance isn’t optional; it’s essential for maintaining trust and managing risk. Firms that act now by reviewing PII cover, implementing governance, and training teams will be best prepared for March 2026.
Disclaimer: This article is for general information only and does not constitute financial, legal, or insurance advice. Always seek professional guidance before making decisions relating to your own insurance or risk management arrangements.