DataTrace analysis says public-record-only AI title search misses meaningful issues in 40.8% of files - FAF News | RalliesDataTrace analysis says public-record-only AI title search misses meaningful issues in 40.8% of files
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FAF• DataTrace finds gaps in public-record-only AI title searches
- First American’s DataTrace analysis found public-record-only AI title searches missed at least one material matter in 40.8% of searchable files.
- Involuntary liens drove the largest gaps, with an issue fail rate above 36%, raising concerns about insurable title decisioning at scale.
- An underwriting review estimated missed matters could translate into USD 489 billion maximum potential liability, USD 148 billion probable liability.
- AI could not search 8% of the 200 residential files due to missing title plant data or comparable normalized datasets.
- The report concluded AI performs best when paired with structured, validated title plant data to support completeness, accuracy, insurability.
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