How GenAI and mobile technology will reimagine accounting

LAST UPDATED: Aug 18, 2024

In today's fast-paced world, most of us are constantly on the move and becoming more and more reliant on our mobile phones. In fact, for 61% of businesses, mobile is their primary tool.

At Xero, we understand the importance of flexibility and accessibility when it comes to managing finances. However, until the explosion of generative AI (GenAI), it was challenging for technology providers to provide information in a conversational, easy-to-understand way that could enable small businesses to perform tasks on the go.

But that's changing.

By combining new GenAI technologies like Just Ask Xero (JAX) with enhanced mobile capabilities, we now have the ability to reimagine the way you do bookkeeping and accounting using AI and mobile. And that's become a key pillar in our product vision.

At Xerocon Nashville, we announced new ways we're moving towards that vision and empowering small businesses to take control of their finances from anywhere, at any time. Here are some of the updates we shared in AI and mobile.

New GenAI smart business companion: Just Ask Xero

Just Ask Xero (JAX), your GenAI smart business companion, which is available in beta later this month, will help you and your clients run your businesses more efficiently. You'll be able to Just Ask Xero to complete tasks such as generating an invoice or editing a quote right from the apps and devices you commonly use.

This development is going to fundamentally change the way you and your clients complete routine business tasks on the go, as they can now be done outside of Xero. You won't have to open up Xero to complete tasks like generating an invoice - just send an instruction to JAX via text message, WhatsApp message or email. Watch the JAX demo below:

And, in the future, we see many more possibilities of how JAX can help you and your clients with your workflows. Watch this space!

Groundbreaking technology boosting accuracy under the hood of Xero

Until now, using generative AI (GenAI) for accounting tasks has been challenging due to how LLMs (the large language models that power this technology) work.

We've all heard horror stories about what GenAI can create without the appropriate guardrails in place. Factual errors called 'hallucinations' that users have reported include historical inaccuracies, incorrect technical information, incorrect or offensive cultural references - or in the case of AI-generated images, anatomical errors, distorted faces and bodies or nonsensical object details.

We know that in accounting, there's just no room for this kind of hallucination. Ensuring that the numbers you're working with are accurate is essential, so we've invested heavily in building technology that you can trust.

Our internal teams at Xero have made an exciting breakthrough in developing a first-of-its kind technology that works under the hood, to ensure that JAX offers far greater accuracy than other AI models that only rely on LLMs.

JAX Assure, the proprietary technology under the hood of JAX, helps JAX navigate accounting tasks with precision, by using a control system to ensure the data that's fed to the LLMs is only related to the relevant task, such as creating an invoice. It also ensures the LLMs only receive data that you've given Xero permission to access, and keeps the data safely within the platform.

These guardrails ensure Xero customers using JAX for accounting tasks can trust its precision and accuracy. We think these guardrails will be really effective and will give us the ability to truly reimagine accounting for you and your clients.

We can't wait for some of you and your clients to get a taste of JAX when it launches in beta in a couple of weeks.

Enhanced mobile experience enables small businesses to manage your finances from anywhere

The big enhancements we've made to the Xero Accounting app will enable you and your clients to effortlessly manage your finances from your mobile devices.

Soon, you'll be able to download, sign up, and use Xero directly from your phone. We're also adding these features:

The big enhancements we've made to the Xero Accounting app will enable you and your clients to effortlessly manage your finances from your mobile devices.

Soon, you'll be able to download, sign up, and use Xero directly from your phone. We're also adding these features:

• [Coming soon] Tap to Pay: Starting early next year, businesses can accept payments on the spot using their mobile device. This makes it even easier to get paid, especially when you're out and about.
• [Coming soon] Predictive cash-flow forecasting: Get a clear picture of your future finances directly in the app. AI-powered forecasting will help you anticipate cash flow needs, make informed decisions, and plan for growth.
• Create, modify and void invoices on the go: Need to send an invoice while you're at a job site or meeting a client? No problem. Create, edit, or even void invoices right from your phone.
• Mobile bank reconciliation: Reconciling transactions is now easier than ever. Our upcoming sort and search feature makes it easy to navigate your bank statements on mobile. Plus AI-powered predictions suggest transaction details, saving you time and reducing manual effort.
• Drill down into P&L statements: Dive deep into profitability with just a few taps. Explore the transactions behind the numbers, identify any discrepancies, and fix errors, all from your mobile device.

Supporting you and your clients to adapt GenAI

At Xero, we're really excited about the possibilities these new mobile and AI developments will open up for you and your clients, but adapting to new tools - even if they'll make life easier - can be difficult or confusing. Established ways of working and habits can be hard to break. Plus, it can be hard to get excited about the benefits of GenAI if you don't really understand it.

So, to help you and your clients embrace AI and understand the benefits of these new tools, we've published two simple AI guides, tailored to small businesses and their advisors.

These guides summarise relevant AI updates, offer practical ways to start implementing some AI-powered tools in your business, and showcase some small businesses and advisors already using AI effectively in their business. We hope these guides help to provide some inspiration in taking the first step towards exploring using AI in your practice and encouraging your clients to do the same.

Looking ahead

I'm excited about the developments we've made in mobile and GenAI over the last year, and we're just getting started. As both our generative AI offering and mobile app continue to evolve, the possibilities it brings in terms of efficiency, innovation, and competitive advantage to businesses that embrace it are vast. I hope you'll come along for the ride with us.

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