AI Use & Transparency Policy

1.1 Purpose

The purpose of this AI Policy is to provide Customers with a clear understanding of how Artificial Intelligence is incorporated into the Services, the limitations of AI-generated content, and the respective responsibilities of BN Reports and its Customers.

1.2 Objectives

This Policy is designed to:

• promote transparency in the use of AI;
• explain how AI features operate within the Services;
• establish responsible AI usage requirements;
• protect Customer Data and privacy;
• clarify ownership of AI-generated content;
• reduce the risk of inaccurate or misleading inspection reports;
• support compliance with applicable laws and professional standards; and
• foster responsible innovation.

1.3 Scope

This Policy applies to all AI-powered functionality offered by BN Reports, including future AI features introduced after the Effective Date.

1.4 Software Provider

BN Reports provides software tools only. BN Reports does not provide engineering opinions, home inspection services, legal advice, building code interpretation, or other professional services through its AI features.

1.5 Relationship to Other Agreements

This Policy supplements, and should be read together with, the Master Subscription Agreement, Privacy Policy, Acceptable Use Policy, and any applicable subscription or enterprise agreements. In the event of a conflict, the Master Subscription Agreement shall govern unless Applicable Law requires otherwise.

2.1 AI Features

Depending on the Customer's subscription plan, AI functionality may include:

• report drafting;
• narrative generation;
• defect descriptions;
• spelling and grammar improvements;
• rewriting and summarization;
• voice-to-text transcription;
• image interpretation assistance;
• report organization;
• workflow automation;
• client communication drafting;
• template generation;
• inspection note formatting; and
• other AI-assisted productivity tools.

2.2 Purpose of AI

AI features are intended to improve efficiency, consistency, productivity, and documentation quality. AI is designed to assist qualified inspectors—not replace them.

2.3 Continuous Improvement

BN Reports may improve, modify, replace, or discontinue AI features at any time as technology evolves.

2.4 Availability

Certain AI features may:

• require an internet connection;
• require additional subscription levels;
• rely on third-party AI providers;
• be subject to usage limits; or
• vary by geographic region.

2.5 Beta AI Features

Certain AI functionality may be designated as Beta, Preview, Experimental, or Early Access and may be subject to separate terms.

3.1 Professional Judgment

Customers remain solely responsible for exercising their own professional judgment. AI output must never replace the inspector's independent observations, expertise, experience, or decision-making.

3.2 Verification

Customers shall review, verify, edit, and approve all AI-generated content before:

• delivering reports;
• sending client communications;
• issuing recommendations;
• publishing documents; or
• relying upon AI-generated information.

3.3 Accuracy

Customers acknowledge that AI may:

• generate inaccurate information;
• omit relevant facts;
• misunderstand context;
• produce incomplete responses;
• create inconsistent narratives; or
• make formatting errors.

3.4 Final Responsibility

The Customer—not BN Reports—is solely responsible for:

• every Inspection Report;
• every recommendation;
• every conclusion;
• every photograph selected;
• every AI-generated narrative;
• every client communication; and
• every professional opinion issued using the Services.

3.5 Compliance

Customers remain responsible for complying with:

• licensing requirements;
• professional standards of practice;
• insurance requirements;
• contractual obligations;
• applicable building standards;
• privacy legislation; and
• Applicable Law.

4.1 Data Submitted to AI

To provide AI functionality, BN Reports may process information submitted by Customers, including:

• inspection notes;
• report narratives;
• photographs;
• uploaded documents;
• voice recordings;
• report templates;
• prompts;
• property descriptions;
• defect information; and
• Customer Data necessary to perform the requested AI task.

4.2 Limited Processing

BN Reports processes only the information reasonably necessary to perform the AI function requested by the Customer.

4.3 Confidentiality

Customer Data submitted to AI features is handled in accordance with the BN Reports Privacy Policy and applicable confidentiality obligations.

4.4 Third-Party AI Providers

Certain AI features may rely on trusted third-party providers. Where third-party AI providers are used, BN Reports requires commercially reasonable contractual safeguards designed to protect Customer Data and maintain confidentiality.

4.5 Customer Consent

By using AI features, Customers authorize BN Reports to process submitted information as reasonably necessary to provide the requested AI functionality.

4.6 Security

BN Reports implements commercially reasonable administrative, physical, and technical safeguards designed to protect Customer Data during AI processing. No electronic system can guarantee absolute security.

5.1 No Guarantee of Accuracy

AI-generated content may contain errors, omissions, inaccuracies, outdated information, or misleading statements. BN Reports makes no representation or warranty regarding the accuracy, completeness, reliability, or suitability of AI-generated output.

5.2 Assistance Only

AI is intended solely as an assistive productivity tool. AI does not:

• inspect properties;
• observe site conditions;
• verify measurements;
• diagnose defects;
• interpret building codes;
• determine compliance with standards of practice;
• provide engineering opinions;
• provide legal advice; or
• replace professional judgment.

5.3 Hallucinations

Artificial Intelligence systems may occasionally generate incorrect or fabricated information ("hallucinations"). Customers must independently verify all AI-generated output before relying upon it.

5.4 No Professional Advice

AI-generated content does not constitute:

• engineering advice;
• architectural advice;
• legal advice;
• insurance advice;
• environmental consulting;
• municipal approval;
• code compliance determinations; or
• professional certification.

5.5 Limitation of Reliance

Customers acknowledge that they use AI-generated content at their own discretion and risk. Reliance on AI output without appropriate professional review is solely the responsibility of the Customer.

6.1 Customer Ownership

Except as expressly provided in the Master Subscription Agreement, Customers retain all right, title, and interest in and to:

• Customer Data;
• inspection reports;
• uploaded photographs;
• videos;
• inspection notes;
• voice recordings;
• report templates created by the Customer;
• client communications; and
• other content submitted through the Services.

BN Reports does not acquire ownership of Customer Data by providing AI functionality.

6.2 AI-Generated Output

Subject to Applicable Law and the rights of any third-party licensors, Customers own the final AI-generated output that is incorporated into their reports, documents, or communications, provided such output is reviewed, edited, and accepted by the Customer.

6.3 BN Reports Intellectual Property

BN Reports retains exclusive ownership of:

• the Services;
• AI systems;
• AI models;
• prompts developed by BN Reports;
• software;
• source code;
• databases;
• algorithms;
• workflows;
• user interfaces;
• trademarks;
• logos;
• documentation;
• proprietary methodologies; and
• all related intellectual property rights.

Nothing in this Policy transfers ownership of BN Reports' intellectual property.

6.4 Feedback

Customers may voluntarily provide suggestions, comments, recommendations, or feedback regarding AI features. Unless otherwise agreed in writing, BN Reports may use such feedback without restriction or obligation to compensate the Customer.

6.5 Improvements

BN Reports retains ownership of all improvements, enhancements, updates, modifications, and future AI developments, regardless of whether such improvements were inspired by Customer feedback.

7.1 Lawful Use

Customers shall use AI features only for lawful and legitimate business purposes consistent with this Policy, the Acceptable Use Policy, the Master Subscription Agreement, and Applicable Law.

7.2 Appropriate Uses

Examples of appropriate AI use include:

• drafting inspection narratives;
• summarizing inspection notes;
• improving grammar and readability;
• organizing reports;
• creating client communication drafts;
• formatting reports;
• generating maintenance recommendations;
• organizing templates;
• improving workflow efficiency; and
• automating administrative tasks.

7.3 Human Oversight

All AI-generated content must be reviewed by a qualified individual before being relied upon or shared externally. Customers shall not use AI output without appropriate human oversight.

7.4 Transparency

Customers should not knowingly represent AI-generated content as having been independently verified unless such verification has actually occurred.

7.5 Responsible Use

Customers shall use AI in a manner that promotes fairness, honesty, professionalism, and compliance with applicable laws and industry standards.

9.1 Operational Monitoring

BN Reports may monitor AI usage for operational, security, fraud prevention, performance optimization, billing verification, and compliance purposes in accordance with the Privacy Policy and Applicable Law.

9.2 Abuse Detection

BN Reports may use automated or manual methods to detect:

• excessive AI requests;
• abusive prompts;
• fraudulent activity;
• attempts to exploit AI systems;
• unusual usage patterns;
• violations of subscription limits; and
• suspected violations of this Policy.

9.3 Investigations

Where BN Reports reasonably suspects misuse of AI features, it may investigate such activity using logs, audit records, authentication records, system activity, and other information reasonably necessary to protect the Services.

9.4 Corrective Action

Where a violation is reasonably believed to have occurred, BN Reports may:

• issue warnings;
• temporarily restrict AI access;
• reduce usage limits;
• suspend AI functionality;
• suspend Accounts;
• terminate subscriptions in accordance with the Master Subscription Agreement; or
• pursue any other contractual or legal remedies available.

9.5 Audit Records

BN Reports may maintain logs relating to AI usage, prompts, authentication events, and system activity for security, troubleshooting, compliance, billing, and product improvement purposes, subject to the Privacy Policy and Applicable Law.

10.1 AI Limitations

Artificial Intelligence systems may produce biased, incomplete, inconsistent, or inaccurate responses due to limitations in training data, statistical modeling, or contextual interpretation.

10.2 No Guarantee of Neutrality

BN Reports does not warrant that AI-generated content will be free from bias, error, or unintended outcomes.

10.3 Customer Review

Customers are responsible for identifying and correcting any:

• factual inaccuracies;
• misleading statements;
• discriminatory language;
• inappropriate content;
• unsupported conclusions; or
• biased recommendations generated by AI.

10.4 Ethical Use

Customers agree to use AI responsibly and shall not intentionally employ AI to deceive, discriminate against, harass, or unfairly disadvantage any person or organization.

10.5 Continuous Improvement

BN Reports may periodically improve AI systems to reduce inaccuracies, improve consistency, enhance usability, and promote responsible AI practices.

11.1 Protection of Customer Data

BN Reports maintains commercially reasonable administrative, technical, and organizational safeguards designed to protect Customer Data processed through AI features. Such safeguards may include:

• encryption during transmission;
• access controls;
• authentication mechanisms;
• audit logging;
• monitoring;
• secure cloud infrastructure;
• vulnerability management; and
• employee confidentiality obligations.

11.2 Customer Responsibilities

Customers remain responsible for safeguarding confidential information before submitting it to AI features and should avoid including sensitive information that is not necessary for the requested AI task.

11.3 Confidential Information

Information processed through AI features shall be handled in accordance with the Master Subscription Agreement, Privacy Policy, and any applicable confidentiality obligations.

11.4 Security Incidents

If BN Reports becomes aware of a confirmed security incident affecting AI systems that involves Customer Data, BN Reports will respond in accordance with its Incident Response procedures, Privacy Policy, and Applicable Law.

11.5 No Absolute Security

While BN Reports employs commercially reasonable safeguards, no technology, network, or electronic storage system can be guaranteed to be completely secure. Customers acknowledge and accept the inherent risks associated with electronic data transmission and cloud-based services.

12.1 Compliance with Applicable Law

Customers shall use AI features in compliance with all applicable federal, provincial, state, territorial, local, and international laws, regulations, professional standards, and regulatory requirements governing their business activities.

12.2 Professional Standards

Nothing within the Services or AI functionality relieves Customers of their obligation to comply with:

• applicable Standards of Practice;
• licensing requirements;
• certification requirements;
• professional codes of conduct;
• contractual obligations;
• insurance requirements; or
• legal duties owed to clients or third parties.

12.3 Privacy Laws

Customers are responsible for ensuring that any Personal Information submitted to AI features is collected, used, disclosed, and processed in accordance with Applicable Law, including obtaining any required consents. BN Reports processes Customer Data in accordance with the Privacy Policy and applicable contractual obligations.

12.4 Export Controls and Sanctions

Customers shall not use AI features in violation of applicable export control laws, trade sanctions, embargoes, or other restrictions imposed by Canada, the United States, or other applicable jurisdictions.

12.5 Government Requests

Where legally required, BN Reports may respond to lawful requests from courts, regulators, or governmental authorities in accordance with Applicable Law, the Privacy Policy, and the Master Subscription Agreement.

12.6 No Regulatory Certification

Unless expressly stated in writing, the availability or use of AI features does not constitute certification, approval, endorsement, or compliance with any governmental authority, regulatory body, licensing organization, insurance provider, or professional association.

13.1 Right to Modify

BN Reports reserves the right to amend, replace, supplement, or discontinue this AI Policy at any time to reflect:

• technological advancements;
• legal developments;
• changes in AI capabilities;
• regulatory guidance;
• security requirements;
• industry best practices;
• operational needs; or
• improvements to the Services.

13.2 Notice

Where a material change is made, BN Reports may provide notice through:

• email;
• customer dashboard notifications;
• in-application messages;
• website notices;
• support communications; or
• any other commercially reasonable method.

13.3 Effective Date

Unless otherwise stated, revisions become effective on the Effective Date identified in the updated Policy. Continued use of AI features following the effective date constitutes acceptance of the revised Policy to the extent permitted by Applicable Law.

13.4 Customer Responsibility

Customers are responsible for periodically reviewing this AI Policy to remain informed regarding their rights and obligations.

13.5 Conflicts

In the event of a conflict between this AI Policy and the Master Subscription Agreement, the Master Subscription Agreement shall prevail unless Applicable Law requires otherwise.

14.1 Questions

Questions regarding this AI Policy or the operation of AI features may be directed to BN Reports through the official support channels published on the BN Reports website.

14.2 AI Concerns

Customers are encouraged to promptly report:

• suspected AI errors that may materially affect platform functionality;
• security concerns relating to AI features;
• suspected misuse of AI services;
• unexpected or harmful AI behavior;
• privacy concerns relating to AI processing; or
• suspected vulnerabilities involving AI functionality.

14.3 Feedback

BN Reports welcomes suggestions regarding AI improvements, feature requests, usability enhancements, and responsible AI practices. Submission of feedback does not create any obligation for BN Reports to implement the suggested changes or provide compensation.

14.4 Response Times

BN Reports will use commercially reasonable efforts to review AI-related inquiries in a timely manner; however, response times may vary depending on the nature, complexity, and urgency of the matter.

15.1 Entire AI Policy

This AI Usage & Transparency Policy constitutes the complete policy governing the use of AI functionality provided through the Services and supersedes any prior AI-specific policies issued by BN Reports.

15.2 Relationship to Other Agreements

This AI Policy forms part of and is incorporated into:

• the BN Reports Master Subscription Agreement;
• the Privacy Policy;
• the Acceptable Use Policy;
• the Terms of Use; and
• any applicable subscription, enterprise, or partner agreements.

Customers agree to comply with all applicable agreements when accessing or using AI features.

15.3 Severability

If any provision of this AI Policy is determined to be invalid, illegal, or unenforceable by a court or tribunal of competent jurisdiction, the remaining provisions shall remain in full force and effect.

15.4 No Waiver

Failure by BN Reports to enforce any provision of this AI Policy shall not constitute a waiver of that provision or any other right available under contract or Applicable Law.

15.5 Governing Law

This AI Policy shall be governed by and interpreted in accordance with the governing law provisions set out in the Master Subscription Agreement.

15.6 Reservation of Rights

BN Reports reserves all rights, remedies, protections, and defenses available under:

• the Master Subscription Agreement;
• Applicable Law;
• intellectual property laws;
• privacy laws;
• contract law; and
• equitable principles.

Nothing in this AI Policy limits any legal or equitable remedy available to BN Reports.

15.7 Language

The parties acknowledge that they have expressly requested that this AI Usage & Transparency Policy and all related documents be drafted in the English language. Les parties reconnaissent avoir expressément demandé que la présente Politique d'utilisation et de transparence de l'intelligence artificielle ainsi que tous les documents qui s'y rattachent soient rédigés en langue anglaise.

15.8 Effective Date

This AI Usage & Transparency Policy becomes effective on the Effective Date stated above and remains in effect until amended or replaced by BN Reports.

15.9 Acceptance

By accessing or using any AI feature offered through the Services, Customers and Authorized Users acknowledge that they have read, understood, and agree to be bound by this AI Usage & Transparency Policy.