With over 30 years in public accounting and corporate finance, I have seen technology repeatedly transform our industry. Artificial Intelligence (AI) is the latest advancement. While it is tempting to believe AI will soon handle everything, especially given its widespread adoption, it is important to remain realistic.
To get the most value, we need to understand not just what AI can do, but where its role ends, and human expertise is required. Recognizing both strengths and limitations is key to effectively putting AI to work.
For busy leaders, here is what you can expect from this article:
These actionable strategies are designed to help you implement AI with confidence and achieve better results for your business.
For transparency, I use AI assistants to help outline articles and optimize my calendars, but I always review their work. Read on to see why that review is essential.
What Exactly is AI in Business?
In business, “AI” usually refers to software that can process large volumes of data, automate routine tasks, and even surface insights from patterns that would take a human hours (or days) to spot. It’s not a crystal ball, and it’s certainly not a replacement for professional judgment, but it can be a powerful ally.
The line between AI capability and where human experience is necessary is increasingly complex. To illustrate, consider these key areas where I see this distinction play out:
Where AI Shines in Business
Automating the Repetitive
AI is invaluable for tasks such as data entry, transaction categorization, and identifying data outliers. At our firm, this allows us to dedicate more time to strategic initiatives and less to routine work.
Speeding Up Analysis
AI can analyze large volumes of financial data in seconds, revealing trends and risks that might otherwise go unnoticed. For example, it can quickly identify cash flow bottlenecks or unusual spending patterns. Addressing these issues can result in significant savings for your business.
Reducing Human Error
Routine calculations and reconciliations are less prone to error when automated, assuming the initial data is accurate.
Recently, I used an AI tool, my data analysis assistant “Dexter,” to categorize nearly a year’s worth of client transactions. I selected Dexter because it integrates seamlessly with our existing systems, allows for customizable categorization rules, and provides clear audit trails, all of which are important when handling sensitive financial data. This task, which would have taken several hours manually, was completed in minutes.
By automating this process, we not only saved valuable staff time but also reduced the risk of manual errors and increased accuracy. As a result, the client experienced a faster turnaround and improved satisfaction with our services. This allowed me to focus on advising the client on growth strategies, ultimately delivering greater value. AI can reportedly perform certain tasks up to 767 times faster than a human, and my experience supports this claim.
Where AI Still Falls Short
Complex Judgments
While AI can process data efficiently, it cannot replace the seasoned judgment we apply at Estacado Advisors to complex matters such as tax strategy, succession planning, or business growth advisory. These areas require experience, context, and intuition developed over years.
As a seasoned partner once told me, “If you have a complex client issue, you need someone with grey hair or no hair.” That advice has always resonated with me.
Relationship Building
Trust is not established by algorithms. Business partners, customers, and vendors value genuine conversations, especially when addressing sensitive topics or making significant decisions. Relying on AI-generated email responses is not advisable.
Ethical & Regulatory Nuance
Regulations change rapidly, and AI may not always remain current. Experienced professionals know when to pause and investigate further, rather than accept automated outputs without question.
Early in my experience with AI, I nearly relied solely on an AI-generated report to identify potential compliance issues for a client. Under time pressure, I almost missed a key regulatory change the tool had overlooked. Fortunately, I reviewed the findings and prevented a costly oversight. This experience reinforced that AI is a tool, not a substitute for professional expertise. To avoid similar pitfalls, we have established specific safeguards, including:
Implementing such safeguards helps build trust in AI adoption while minimizing risks.
When Does AI Make Sense? A Simple Decision Framework
Use AI for:
Rely on Human Expertise for:
“AI is a powerful ally, but it’s no substitute for experience, judgment, and genuine care.”
Best Practices for Blending AI and Human Expertise
The Human Factor
We use technology to handle routine tasks so we can focus on what matters most: helping clients grow, solving complex problems, and supporting confident decision-making. For example, when working with a mid-sized retail client, we combined AI-powered data analysis with our team’s financial expertise to uncover subtle inventory trends that were impacting profitability.
By quickly flagging unusual patterns with AI and then evaluating the root causes together with the client, we implemented more effective inventory controls and pricing strategies. As a result, the client saw a noticeable improvement in margins within just one quarter. This experience illustrates how the right balance of AI efficiency and human insight delivers meaningful results.
AI boosts efficiency and insight, but the best results come when it’s paired with experience, judgment, and care. Remember, it’s an ally, not a complete solution.