Predicative AI to bolster advisory services, says Xero
Advancements in predictive AI will lead to enhanced forecasting tools and may help accountants expand into advisory services, according to the software firm.
Xero executive GM, technology strategy and integration James Bergin said while there has been considerable focus on generative artificial intelligence (AI) recently, other types of AI including predictive AI are likely to have a far greater impact in terms of helping accountants and small businesses to thrive.
“Predictive AI is where you look at historical patterns in order to make future predictions,” said Mr Bergin speaking at Xerocon in Sydney last week.
“As advisors getting a glimpse into the future could genuinely change the lives of your clients. Imagine if you see the challenges five or ten years before they come or see the opportunities that don’t yet exist. What conversations could you be having with your clients today? What changes could they be making within their business?”
Mr Bergin said while technologies such as this aren’t receiving quite as much hype as generative AI, there are more and more capabilities being unlocked in this space.
“It’s a really interesting space because you’re looking at historical performance and trying to anticipate where things might go,” he said.
With accountants and bookkeepers increasingly looking to move into the advisory space, predictive AI may act as the trigger for those conversations in the future.
“If you’re talking about a cashflow forecast, for example, you might be able to say well things are looking rosy but they may not be in a year or two. As those capabilities yet richer and the datasets get stronger, I think there will be opportunity to cast out a little bit further and get a little bit more confidence,” said Mr Bergin.
“We know that really good accountants and bookkeepers are already having these kinds of conversations but its the nature of being able to use the data that’s coming through and say ‘maybe we can talk about this’ or ‘is this the next action to explore?”
Xero chief product officer Diya Jolly said Xero is also looking at a range of other areas as well including tools for making accountants and bookkeepers more profitable and being able to understand their future.
“So within our practice tools we’re exploring how accountants and bookkeepers can best distribute their work based on the kinds of clients and the type of work they have? [For example], how do we reduce the time required to service each client, what’s the profitability of each client and how can that profitability change based on the services provide which is all a bunch of predictive analytics as well,” said Ms Jolly.
“That’s something we’ve been working on as a concept.”
About the author
