Exploring barriers to valuation technology adoption in property valuation: insights from practitioners

Purpose This study aims to investigate barriers to adopting valuation technology (VTech) in the property valuation profession and its implications for property investment and financial market stability. Despite advances in automation, data analytics and artificial intelligence (AI), the sector has been slow to digitise. The research examines how institutional, cultural and technical factors shape resistance, with consequences for asset pricing, collateral risk modelling and investor confidence. Design/methodology/approach A qualitative design was employed using semi-structured interviews with valuers, firm leaders and regulators in New Zealand. Thematic analysis was guided by Rogers' diffusion of innovations and institutional theory, synthesised into an institutionally mediated diffusion of innovations (IDOI) framework to explain how professional logics mediate perceptions of innovation. Findings Barriers to adoption arise primarily from institutional conservatism, outdated regulation and weak data governance rather than technical shortcomings. The Valuers Act (1948), fragmented infrastructure and sovereignty concerns limit innovation. Generational divides, protectionist attitudes and fears of automation reinforce digital resistance, while practitioners stress that human judgement remains indispensable, positioning technology as an aid rather than a replacement. Practical implications Regulatory modernisation, secure national data infrastructure and targeted digital training are essential to enable sustainable innovation in valuation practice. For lenders and investors, wider VTech adoption can enhance valuation accuracy, portfolio transparency and collateral risk assessment, strengthening confidence in property markets and capital allocation. Originality/value The study reframes VTech adoption as legitimacy-seeking rather than efficiency-driven. The IDOI framework provides a transferable model for understanding digital transformation in regulated, high-trust professions and highlights the market-level risks of institutional inertia in property valuation.