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They Tried AI Tax Software. Then They Called You.

They Tried AI Tax Software. Then They Called You.

Why Tax Pros Are More Valuable Than Ever

Edna Garcia
March 13, 2025 • Estimated Reading Time: 3 minutes

Hey —

Did you know that even with all the hype around AI, the average CPA fee is rising?

That's because clients are willing to pay a premium for expertise and judgment that AI just can't replicate.

When things get complicated – multi-state returns, nuanced deductions, or tricky audits – they still turn to you.

The Payoff for Expertise

AI is changing the game, but it's not a threat to your practice – it's an opportunity to charge premium rates for your expertise. While is great at AI handling the simple stuff, yet clients will increasingly seek out your judgment to avoid costly errors and maximize their returns because it’s been seen that…

AI Can't Replace Judgment: AI software is great for basic calculations, but it has risky misses on complex situations. AI systems are about 68% accurate on multi-state tax issues, while tax pros and CPAs boast 94% accuracy. That 26% gap represents real money and compliance risk for clients.

AI Misses Opportunities: Consumer taxpayer AI options overlook deductions specific to certain industries. A recent study found that AI misses 22% of these opportunities!

Forget just saving time. The best firms are using AI to strategically reallocate their expertise.

Don’t fall for it. Go beyond the efficiency trap

Many discussions of AI in tax practice fall into what we’ll call the "efficiency trap"—focusing exclusively on time savings rather than strategically redistributing their talent’s intellectual capital.

Most practices ask: "How can AI save us time?"

The better question: "Which specific decision points in our workflow represent commodity calculations versus value-demonstrating judgments?"

"When your mental energy isn't consumed by data reconciliation, your bandwidth for identifying planning opportunities expands exponentially.”

Mohson Choudry, CPA

Focus on High-Value Decisions: Instead of automating everything, identify the specific decision points in your workflow where your judgment makes the biggest difference.
Free Up Your Time for Client Relationships: Modern AI tools can reduce data entry time by 58%. As Mohson Choudry, CPA, puts it: "When your mental energy isn't consumed by data reconciliation, your bandwidth for identifying planning opportunities expands exponentially."
Create Deeper Engagement: Tech can either create distance or enable deeper client connections, and I’m sure you’ve been on the receiving end of this as a consumer too.
- Firm A implemented AI to process more returns faster, increasing volume 35%.
- Firm B used the same AI but redirected saved time to strategic client conversations, increasing average revenue per client by 47%.

The difference wasn't the technology—it was the strategic application of liberated intellectual capital - in short, align your tech adoption strategy to this overarching objective!

Reply to this email with your insights—we'll feature selected responses in next week's edition.

Until next week,
Edna