If you haven’t heard of it by now, a revolutionary new language-modeling application known as “ChatGPT” was introduced to the world just before the turn of the new year. The program is a free, easy to use, online platform created by OpenAI, and at first glance, it looks like a complete gamechanger. “ChatGPT” makes Google search look primitive, by using artificial intelligence to provide nuanced responses to complex questions, generate detailed letters based on virtually any prompt, and more.
Board members and community managers may look to the program to help expedite mundane tasks such as drafting notice to comply letters and getting guidance on how to handle a particular HOA-related issue. But how trustworthy is ChatGPT and will it replace the need for legal counsel involvement?
First, the program is still in its very early stages, and it shows. It will often cite incorrect provisions of the Civil Code or outdated portions of the law. Also, the data it uses to generate responses, stops at 2021. As you all know, the laws are being changed yearly, so this creates a problem of accuracy.
Second, problem-solving in community associations is very often, not a black or white matter. ChatGPT is extremely creative at generating nuanced answers and even presenting both sides of any argument, if you ask it to. But it’s ability to factor in other factors, such as the character and history of the community, to formulate a coherent solution or strategy, is still primitive. Very often, it will remind the user to be sure to refer to the association’s legal counsel for guidance.
Third, as managers and boards know all too well, the rules and restrictions of the community are contained in the governing documents, including the CC&Rs. ChatGPT can’t review CC&Rs (yet), although it is good at reminding the user to check the governing documents when unsure. Very often, where to look in the governing documents for a particular answer or strategy, is where the experience of legal counsel plays in.
Finally, and perhaps most important of all, is the issue of liability. There’s no doubt that ChatGPT can help boards and managers save time with routine tasks such as drafting quick letters or email responses to a homeowner question and possibly answering those rare “black or white” questions. At a minimum, it may help get you a second opinion to your legal counsel’s recommendation or strategy.
However, board members are protected from liability by the ‘Business Judgment Rule’. (Corp. Code Sec. 7231.) This means that as long as directors make decisions in good faith, in a manner they believe to be in the best interests of the association, and with due care, they are protected from personal liability if sued for that decision. “Due care” also means that boards are relying on the advice of their experts, including contractors, accountants, legal counsel, and the like. Failing to exercise reasonable business judgment, including relying on the advice of experts, may impact a coverage decision by the association’s directors and officers liability insurance carrier. It doesn’t look like legislation or insurance policies are changing to include “artificial intelligence” as part of the board’s decision-making process, for the foreseeable future.
All in all, ChatGPT is a tool, but not a crutch. It can certainly help with some basic research and day-to-day written tasks, to an extent. However, boards should continue to seek the advice of legal counsel when confronted with a perplexing legal issue, especially for liability and insurance reasons.
BT can certainly help guide you on using ChatGPT effectively and responsibly, nonetheless!