Xero unveils AI companion JAX to enhance accounting accuracy

Xero has unveiled new technology designed to enhance the accuracy of accounting tasks through its upcoming AI-powered business companion, Just Ask Xero (JAX). The AI-based tool, scheduled for beta release in August, aims to assist small businesses in carrying out accounting tasks more efficiently by leveraging generative AI (GenAI).

The JAX tool will allow users, which include customers, accountants, and bookkeepers, to complete tasks such as generating invoices and editing quotes. These tasks can be performed within the Xero platform or through other apps and devices frequently used by businesses, including mobile phones, WhatsApp, and email. The demonstration of JAX can be viewed online.

Diya Jolly, Chief Product and Technology Officer at Xero, spoke about the new technology, stating, “We are making steps towards delivering on our product vision to reimagine accounting through AI and mobile. Small business owners are rarely in one place, or using just one tool. Through GenAI and mobile, it's now possible to really change accounting for small businesses so that it’s where their work is — in the office, on the move, on their computer or on their smartphone. With powerful, smarter AI like JAX answering our customers’ most important questions, we’re making the most critical business tasks available to business owners in the most important place — wherever they work.”

The proprietary technology behind JAX aims to offer far greater accuracy than general large language models (LLMs). The system uses a control mechanism to ensure that the data fed to the LLMs is only relevant to the task at hand, such as generating a quote for an invoice. This is particularly important in accounting, where accuracy is paramount. Missteps or inaccuracies could lead to significant issues, thus the controlled environment provided by this new technology addresses these concerns.

Jolly elaborated on this point, stating, “It's critical to ensure accuracy in accounting tasks, which means using GenAI presents a unique challenge. LLMs are incredibly powerful yet can be flawed. When they are ungrounded and don't have access to the right information in context, they can make up data points. In accounting, we can't make up information. That’s why implementing a technology like this is so groundbreaking for the accounting industry. It puts the right guardrails in place around the AI to ensure Xero customers using AI for accounting tasks can trust the precision and accuracy of JAX.”

The new technology also includes data security features aligned with Xero’s broader platform measures. It ensures that the LLMs only receive data that users have given Xero permission to access and keeps this data securely within the platform. This aspect is crucial for maintaining user trust and data integrity.

JAX's capabilities are designed to assist small businesses not just in carrying out tasks but in predicting what tasks may need to be performed next. This innovation aims to help businesses better manage their cash flow and make more informed decisions alongside their advisors. Small businesses interested in participating in the JAX beta can express their interest online.

Xero has also introduced additional GenAI features within its platform. These include generative AI-powered help content summaries designed to provide accurate answers more quickly and an AI-powered setup guide for new users. The generated answers feature in Xero Central, the company’s customer support and learning site, has improved search times by approximately 40%. The setup guide helps new users navigate the Xero dashboard and get started more efficiently.

To further support small businesses and their advisors in embracing AI, Xero has published tailored AI guides. These guides offer practical advice on incorporating AI into business operations and highlight successful implementations. Jolly commented, “Small businesses and their advisors make hundreds of decisions to complete even the simplest tasks. Generative AI can be a powerful companion to help them run their businesses more efficiently and automate back office tasks. We want to partner with our customers to help them navigate this wave of AI innovation so they can maximise its benefits in their businesses. That’s why we’re providing education resources and building a business companion they can rely on not just as a creative tool, but they can feel confident is accurate and secure for their accounting tasks.”