SPECIAL THANKS TO THESE SPONSORS:


Academic Advocate Sponsor


CAI-OC Manager’s Breakfast:


The Manager’s Guide to AI in Community Associations


Breakfast Booster Sponsors


Alan Smith Pools America’s Finest Manufacturing Co. Azury Landscaping, Inc. Berg Insurance Agency in Partnership with LaBarre/Oksnee Delphi Law Group, LLP Fenton Grant Kaneda & Litt, LLP PCW Contracting Services Premier Commercial Painting South Inc WICR Waterproofing & Construction


December 11, 2025 Eli Perez, CMCA, Optimum Professional Property Management, Inc., AAMC


Artificial Intelligence (AI) is increasingly being integrated into community association management, offering efficiency gains while also introducing new legal and ethical considerations. At the CAI-OC Manager’s Breakfast on December 9, 2025, presenters focused on how managers can use AI—particularly Large Language Models (LLMs)—responsibly without compromising professional standards, confidentiality, or fiduciary duties.


Accuracy Risks and “AI Hallucinations”


A primary concern discussed was the risk of “AI hallucinations,” in which systems generate content that appears authoritative but is inaccurate, outdated, or entirely fabricated. This may include incorrect legal conclusions, misapplied statutes, or invented case law. Studies cited during the seminar showed hallucination rates as high as 65 percent for legal questions, underscoring the danger of relying on AI output without verification.


For California community associations, the risk is heightened by AI’s tendency to cite outdated Davis-Stirling provisions or misinterpret governing documents. The presenters emphasized that even trained professionals and courts have been misled by faulty AI-generated reasoning, reinforcing the need for skepticism and independent review.


Human Judgment and the Business Judgment Rule


The seminar highlighted how AI use intersects with the business judgment rule (BJR). Board members are protected only when decisions are made in good faith, in the association’s best interests, and with reasonable inquiry and diligence. Reliance on AI without human verification may undermine these protections. AI does not replace the need for qualified legal, financial, or technical professionals and should be used only as a support tool—not a decision-maker.


Thanks to Our Speakers


Jamie Hackwith, CMCA, AMS, PCAM Prendiville Insurance Agency


8 March | April 2026


Steven Roseman, Esq. Roseman Law, APC


Tiffany N. Smith-Nguyen, Esq. Delphi Law Group, LLP


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