The digital future still requires title insurance and professional expertise
A new year often brings renewed hope that technology will change everything. And 2026 is no different. Across industries, artificial intelligence is being projected as the next major force to reshape operations, customer expectations, and the way businesses assess risk. Real estate is at the center of that conversation, and title and brokerage companies are not just on the sidelines.
In fact, the headline industry has already moved quickly. According to a recent survey conducted by Qualia, more than 90% of title and escrow professionals have used productivity AI in at least one way. The adoption of AI is not limited to large firms, either. For small and medium-sized companies, AI represents an increasingly affordable way to reduce redundancies, improve responsiveness, and modernize workflows without increasing headcount.
But as AI becomes more prevalent across real estate finance, it’s also drawing a lot of attention from regulators and policymakers — many of whom are rightly concerned that AI tools could be deployed in ways that introduce unfairness, reduce transparency or create consumer harm. That concern is growing as market pressure grows to digitize and speed up transaction times.
That tension between innovation and accountability is one of the reasons why the industry is so sensitive to AI issues. The industry is working to embrace responsible acquisitions, recognizing that the topic is different from many other financial services products, and that the risk of abuse may fall on home owners and lenders.
How AI is used – and where guard lines matter
AI is already being used in subject operations, but mostly in ways that focus on workflow efficiency and data consistency, rather than automated decision-making.
Broadly, title companies are using AI in three ways.
First, communication support. Title and escrow companies are using AI-powered customer tools, including chatbots and writing assistants, to answer common questions, speed up responses, and improve visibility into transaction status.
Second, document and data workflow support. AI is increasingly being used behind the scenes to extract valuable information from documents, reconcile conflicts, and carry accurate data through the closing and policy lifecycle. This helps reduce manual re-entry and early error handling, which can reduce the risk of working with freelancers to focus on troubleshooting and high-value review work.
Third, initial assessment and decision support. In routine, low-risk situations, AI can help flag occurrences that appear to fit standard processing criteria. If anything falls outside of the expected pattern those files are uploaded.
This last point is key: in context, AI is often used to support decisions in routine situations, not to replace judgment in underwriting or managing claims. This is a key difference in how AI continues to be used in other lines of insurance.
Why the title is different from other insurances
Most lines of insurance rely on predictive risk modeling: trying to estimate the likelihood of a future loss event. The title works differently. The article focuses on identification and resolution existing errors and risks – often buried deep in historical records – before a transaction closes.
That difference has important implications for how AI can be used responsibly.
AI can be effective in organizing data, scanning documents, and identifying inconsistencies. But subject matter experts don’t just want the result of a possible accident. They ensure the legal integrity of the identity. And “close enough” doesn’t apply to the subject line. The standard is “not good enough to warrant.” It is accurate enough to protect property rights.
Public records are often fragmented, inconsistent, and stored in thousands of locations through various processes. AI can help navigate those systems more efficiently. But AI can’t cure a defect, interpret a piece of legislation, resolve an exception or coordinate corrective action for all stakeholders. Those are always human responsibilities. Not because the industry is resistant to change, but because the complexities of the real world demand professional accountability.
The promise of AI – and the danger of overdoing it
When used correctly, AI can help title and expense companies become more efficient and keep costs in check. And that’s important in the broader housing ecosystem, where affordability pressures are most concentrated.
But the biggest risk comes when AI is used in places where it’s not appropriate, especially when it’s used to make coverage decisions based solely on automated searches.
Some companies now say they can use AI to make “rapid headline decisions” and recommend leaving coverage based on your output. The refinance market is often considered a testing ground for this approach.
This is where caution is appropriate. Aggregation decisions should never be based solely on automated reviews of public records – even sophisticated algorithms – because some of the most costly risks do not appear in public records at all. Fraud, forgery, misrepresentation and other off-record risks are not identified through automated records searches.
A recent study by ALTA underscores the point. Over 40% of refinance losses and expenses are linked to fraud and forgery issues, and the average claim cost exceeds $200,000.
A promising future – and still exploring
What makes 2026 such an important moment is that the future is clearly visible – but much of it is still being explored. The industry is still deciding where AI creates real value, where it introduces risk, and where it needs leads to maintain consumer protection and market stability.
That was clear at last year’s ALTA ONE conference in New York, where senior leadership from major underwriters shared the stage for a Q&A — and each emphasized AI as central to the industry’s future. That kind of alignment shows more than optimism. It shows a commitment to modernization, investment and building the operational frameworks needed to use AI responsibly.
And that’s the real story. The question is not whether AI will shape the topic and the solution. It already is. The question is whether the industry can use it in ways that improve consumer experience, improve efficiency and strengthen trust, without introducing distortions or lowering standards that protect property rights.
When AI is used as a tool – to reduce redundant work, local friction, and focus human expertise where it matters most – it can meaningfully improve the closing process. But when used to replace professional reviews in areas where assurance is needed, it risks doing the opposite: putting home buyers and lenders at greater risk, not less.
The digital future is here. The securities industry welcomes it. But the safest, most sustainable way forward will be one built on innovation and responsiveness, because in real estate, the cost of maintenance is very high.
Chris Morton is the CEO of ALTA.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: [email protected].
