This Intelligence Disclosure explains how PropFolio's AI-powered features (collectively, "Intelligence") work, what they do and do not do, and the responsibilities of users who rely on Intelligence outputs.
What Intelligence Does
PropFolio Intelligence uses large language models and machine learning to provide the following capabilities:
- Document extraction: Automatically identifies and extracts structured data from uploaded documents such as offering memoranda, rent rolls, financial statements, and appraisals
- Financial analysis: Calculates and presents financial metrics including returns, yields, cash-on-cash projections, and waterfall distributions based on extracted or entered data
- Risk detection: Identifies potential red flags, inconsistencies, and areas requiring further investigation within deal documents
- Contextual insights: Provides market context, comparable data points, and analytical observations relevant to a specific deal
- Report generation: Compiles extracted data, analyses, and insights into structured reports for review and distribution
What Intelligence Does NOT Do
Intelligence is explicitly not designed to and does not:
- Provide investment advice. Intelligence outputs are informational. They are not recommendations to buy, sell, hold, or otherwise transact in any investment.
- Make legal determinations. Intelligence does not interpret contracts, evaluate legal compliance, or provide legal opinions.
- Replace professional judgment. Intelligence outputs are tools to assist qualified professionals. They are not substitutes for the judgment of licensed appraisers, accountants, attorneys, financial advisors, or other professionals.
- Guarantee accuracy. While Intelligence strives for high accuracy, outputs may contain errors, omissions, or misinterpretations. All outputs require human verification.
How Documents Are Processed
When you upload a document, Intelligence processes it through the following pipeline:
- Upload and encryption. The document is encrypted in transit (TLS 1.3) and at rest (AES-256) before any processing begins.
- Classification. Intelligence identifies the document type (e.g., offering memorandum, rent roll, financial statement) to determine the appropriate extraction strategy.
- Extraction. Structured data is extracted from the document using specialized models trained for commercial real estate documents.
- Confidence scoring. Each extracted data point receives a confidence score indicating the model's certainty. Low-confidence extractions are flagged for human review.
- Human review required. All extracted data is presented for human review and verification before being incorporated into deal records.
Data Handling
Your documents and data are handled with the following safeguards:
- Encrypted at rest and in transit. All documents and extracted data are encrypted using AES-256 at rest and TLS 1.3 in transit.
- Not used for model training. PropFolio does not use your documents, data, or Intelligence outputs to train, fine-tune, or improve any machine learning models. Your data is processed solely to deliver Intelligence features to you.
- Deleted per retention policy. Documents and extracted data are retained according to your workspace retention settings. Upon account termination, all data is deleted within 30 days.
- Tenant isolation. Your data is logically isolated from other customers through row-level security. No customer can access another customer's data.
- Subprocessor compliance. Our AI processing partners (Anthropic and OpenAI) process document content in memory and do not retain your data beyond the processing window.
Human Oversight Requirement
All Intelligence outputs must be reviewed by a qualified professional before being used for any consequential decision.
This includes but is not limited to:
- Investment decisions
- Valuations and pricing
- Due diligence conclusions
- Financial projections and forecasts
- Risk assessments
- Regulatory filings or compliance determinations
PropFolio's Platform includes review workflows designed to facilitate human oversight. Users who bypass these workflows do so at their own risk.
Disclaimers
Intelligence outputs are not:
- USPAP-compliant appraisals. Intelligence does not produce appraisals that comply with the Uniform Standards of Professional Appraisal Practice. Any valuation-related outputs are estimates for informational purposes only.
- Tax projections. Financial projections generated by Intelligence do not account for individual tax circumstances and should not be relied upon for tax planning.
- Securities advice. Nothing produced by Intelligence constitutes a recommendation or solicitation to buy or sell securities. PropFolio is not a broker-dealer or registered investment adviser.
- Legal advice. Intelligence does not provide legal analysis or opinions. Document extraction and risk flagging are informational tools, not legal services.
Accuracy and Limitations
Intelligence accuracy depends on factors including:
- Document quality (scan resolution, formatting, completeness)
- Document type and complexity
- Data consistency across source documents
- The evolving capabilities and limitations of underlying AI models
PropFolio continuously monitors and improves Intelligence accuracy but cannot guarantee error-free outputs. Users should always cross-reference Intelligence outputs against source documents.
Changes to This Disclosure
We will update this Intelligence Disclosure as our AI capabilities evolve. Material changes will be communicated via email or in-app notification at least 30 days in advance.
Contact
For questions about Intelligence, contact us at intelligence@propfolio.tech.