We’re starting to see the main accounting software providers promote AI tools within their products and although it would be foolish to swim against the AI tide, it’s worth asking how useful these AI tools might be at the moment.
Examples include:
- Just Ask Xero (JAX) – BETA stage
- Sage Copilot
Take a look at the promotional videos and see what you think.
I have two big concerns about what I’m seeing in the market:
- Is the financial data in your accounting software accurate and up to date AND is there enough financial data to allow AI to produce meaningful analysis?
- Are the sorts of questions you see being asked in the promotional videos actually the sort of questions business owners have been routinely asking?
Data is key
Whether you use AI or not, the age old IT phrase “garbage in – garbage out” still applies.
If your data is incomplete, contains errors or is entered in a way that doesn’t have enough granularity then you won’t be able to get useful information out of your software.
And the chances are – nor will AI.
But will it try to come up with answers that look plausible but may be unreliable?
The other question I have is how big the data-set of financial transactions needs to be in order for any AI tool to produce useful answers to meaningful questions, and especially to produce meaningful answers that you or your finance team couldn’t have produced or aren’t already producing as a matter of course?
Can AI generate insights into your business that people can’t or aren’t?
Tell me what you want, what you really, really want
Before diving into the AI tools, have you stopped to ask yourself what information you need in order to run your business?
A) – If you have and if your business is routinely producing the required information then good for you.
B) – If you’ve asked the question and you’re still not getting the required information then the urgent task is to organise your finance function so it’s doing what your business needs it to.
C) – If you haven’t asked then what are you waiting for?
Depending whether you’re A,B or C, I’m not sure what AI is going to help with. You either have the information you need already or the information just isn’t available.
And when you do stop and ask yourself what information you need in order to run your business – does it look anything like the the questions being asked in the AI promotional videos?
When we see a business for the first time it’s highly likely they’re not generating the financial information they need to help them grow profitably.
That’s a problem that needs solving.
Once it’s solved and financial information is flowing to all of the points across the business it needs to then will an AI tool be as helpful as the software companies would want you to believe?
Are you getting the information you need to run your business effectively and profitably?
Great if you are, but if not let’s have a free-of-charge chat to see if we an help – call Michael Austin on 020 7125 0270 or email info@bluedotconsulting.co.uk
Michael – @bluedotmichael
Related links:
The opposite of “Garbage In – Garbage Out”
How and why to improve your finance team
Why don’t businesses make better use of accounting software?
Chartered Accountants – Bedford House, Fulham Green, London, SW6 3JW
