“Best Practices for Integrating AI in Florida Community Association Management” – FLCAJ Magazine

Today, our world is hugely inundated with the use of artificial intelligence (AI). On a personal level we see this in our use of our smartphones and other technologies to access information either through social media or asking “Siri,” “Alexa,” or “Google” for answers, or in the use of services such as ChatGPT to generate sophisticated, human-like responses to questions posed. The benefits of AI are not just limited to personal use. Although it may not be as visible, AI is used in many industries such as fast food, transportation, health, and entertainment. Therefore, it is not a surprise to see the use of AI in the community association industry as well.

There are many benefits that can be gained from the use of AI by community association management companies. They are using AI for things like bolstering operational efficiencies, enhancing resident experience, and improving compliance with state laws. However, to realize these benefits, management companies must be thoughtful and strategic in their incorporation of AI within the various facets of community management.

Here are some good uses and warnings regarding the incorporation of AI within the community management process.

• Legal Compliance—There are several AI tools that can be used to alert managers when there are changes in laws that are affecting community associations within the state of Florida. Although this is a great tool to alert a manager of potential law changes, it is critically important that managers don’t rely on these AI tools as their exclusive source of this information. This is because it is very common for these AI tools to group their answers for both condominium and homeowners’ associations, but legal requirements are often vastly different depending on the type of association. Further, associations are not solely governed by statutes. The association must also comply with the requirements of their governing documents, and these documents vary from association to association. Therefore, although these AI tools can be a good source of information, it is important that managers take the time to verify AI-generated information with the association’s legal counsel prior to taking any action.
• Resident Communication—AI can also prove beneficial to community association management companies in its communication with residents. There are several AI-powered chatbots that can be incorporated into association websites or apps to provide residents with 24/7 access to questions. However, this could get dangerous if the answers provided go beyond basic questions such as hours of operation, manager contact information, location of various forms, etc. A management company should take precautions to ensure that residents understand that substantive questions must still be submitted to the manager for response. Questions relating to architectural review and restrictive covenants are examples where AI is insufficient to assist.
• Financial Management—Another area where AI can prove beneficial is in the financial management of an association. There are many AI programs that can review a significant amount of data and produce proposed budgets and financial statements within minutes. Again, while this can be beneficial to provide a starting point, it is not a substitution for review by a manager who is aware of both current and upcoming events that can significantly impact an association budget.

While these are just a few potential uses of AI, it proves that integration of AI into community association management companies can transform how associations operate and improve the overall resident experience. However, both associations and managers should keep in mind that while AI can be helpful, it is only a tool and cannot replace the experience and knowledge of the human counterparts of these various AI bots.

To read the original FLCAJ article, please click here.

Florence King concentrates her practice on the representation of condominium, homeowner, and cooperative associations in the state of Florida. Her experience includes handling collections and foreclosures, vendor contracts, drafting and amending governing documents and enforcing association covenants, assisting associations with management issues and other association-related matters. Ms. King is also a licensed mediator and a community association manager. A member of the Florida Bar since 2006, she is also licensed to practice in all three U.S. Districts in the state of Florida.