Let’s pause the discussion on government policy and the economy to discuss personal finances. Earning, saving and investing areserious business in America, with accountant closely involved as they handle the numbers across the U.S. economy. That’s quite a responsibility.
Our responsibility is not paltry either. At Trusco Investment Management, we serve as fiduciaries, legally responsible for doing what’s best for the client, whether that involves investments, fee analysis or financial guidance. Because we’re deeply rooted in the accounting profession through our economic research framework, this column, my TSCPA content, and frequent interactions with accountants on behalf of our clients, it’s an apt moment to turn our focus to a subject relevant to us all – artificial intelligence (AI) and how it is shaping both our fields.
This shift to discussing AI is timely because it is poised to both enhance and challenge our roles. However, as of now, advisors and accountants are leveraging AI as a powerful tool to improve their effectiveness, not as a complete substitute for their expertise.
AI enables advisors to expand research capabilities through virtual assistants, efficiently screening more stocks and ETFs, as ETFs outnumber stocks, and deepening knowledge relevant to client portfolios and markets. These efficiencies raise client service standards, especially given the industry average of 75 client relationships per advisor, ranging from 50 to 150. At Trusco, we cap core client relationships at 40-45 per advisor to maintain superior service. This commitment remains unchanged by AI, as our focus is on delivering exceptional value to select clients.
Just as AI boosts advisory services, accountants are now harnessing it to research relevant regulations and tax treatments or to assess the risks of specific tax strategies. Perhaps more tangibly, AI’s strengths in pattern recognition, document review, and client communication around tax events are already proving valuable. In both professions, therefore, AI stands out as a remarkable productivity enhancer.
Beyond productivity gains, another major development in our field is the growing use of machine-driven algorithms (AI) to speculate in the markets. Today, machines drive over $4 trillion in daily institutional trading volume across equities, futures, options and FX markets. For instance, a (modest) $1 billion fund can employ 5X leverage, deploying $5 billion in capital and turning the portfolio over three times daily.
Yet, these computers lack genuine understanding. They react rapidly to news but can’t interpret complex, human situations. When volatility strikes, advisors and accountants add value through judgment and personal insight—qualities rooted in human experience that AI cannot replicate. The essential argument: our future success hinges on sustaining the uniquely human elements we bring to each client relationship, which technology cannot replace.
Among these qualities, service ranks highest. The following services—creativity, understanding of human behavior, and empathy—are essential attributes that set us apart from AI.
To elaborate, service is one of the most fulfilling aspects of our work and our greatest advantage over automated systems. It means being highly responsive to client needs and expectations while providing peace of mind—something truly invaluable. This commitment can directly benefit clients’ returns, as our deep understanding allows us to apply our expertise to help them save or grow their wealth.
In addition, creativity plays a vital role. It involves not only thinking strategically but also understanding each client’s character and circumstances in depth. For accountants, this means knowing the rules thoroughly and how to apply them to maximize clients’ benefit—an exercise in intellectual capital. For advisors, it requires knowledge not just of rules but of the broader economy, market dynamics, and the full array of available tools, using this wisdom to match client needs and risk tolerance. Practical insight gained from firsthand human experience is key.
No less important is human understanding, particularly empathy. Empathy leads to even better service, ultimately fostering optimal client outcomes. The most effective professionals in either field understand human behavior and work gently to moderate extremes. It remains unlikely that bots will approach the skill of a trained professional in these human-intensive areas. An advisor’s direct, face-to-face interaction with clients enables a nuanced understanding, reading body language and picking up on subtleties a machine never could. In the end, no amount of data empowers a machine to understand a person more deeply than another human can.
AI is transforming all professional services, but our advantage remains in the distinct value humans provide. Our challenge is not only to harness AI for client benefit but also to continually deliver the personal service, creativity, and insight that only people can offer—ensuring we remain indispensable to our clients’ success.