Xero rolled out significant updates to its AI assistant JAX, short for “Just Ask Xero”, on September 3, adding features that predict invoice payment dates and automate expense processing. Announced at Xero’s annual conference in Brisbane, the changes could help small business owners stop playing the guessing game with cash flow.
JAX now analyzes payment patterns to forecast when customers will actually pay their bills, then automatically sends payment reminders based on those predictions.
It’s also taking over the tedious work of processing employee expense claims and can generate financial reports when users simply type questions in plain English.
The updates build on JAX’s beta launch from August 2024. Xero reports that 73% of its customers have already experimented with AI features on the platform, indicating a genuine appetite for automation among small business owners who typically manage their own books.
Tackling the AI “hallucination” problem
Xero knows that getting AI wrong in accounting can be disastrous, so it built what it calls “JAX Assure” to catch mistakes before they reach users.
The system is designed to filter out the kind of false information that AI models sometimes generate, or what tech folks call “hallucinations” when AI confidently states things that aren’t true.
“JAX doesn’t just support today’s workflows; it continuously learns, adapts, and acts to meet the evolving needs of business owners. By handling repetitive tasks and empowering our customers to focus on growth, relationships, and high-value decisions, we’re seeing what’s possible for the future of work in the accounting industry, and we’re excited to keep expanding our AI offering,” said Diya Jolly, Xero’s Chief Product and Technology Officer, in the press release regarding the new features.
That’s the promise, anyway. Small business owners have been burned by clunky software before, so the real test will be whether JAX actually saves time or creates new headaches.
More than just payment predictions
The AI updates extend beyond invoice management. JAX now handles “progress payments” by letting businesses collect deposits or partial payments upfront rather than waiting for the full amount.
There’s also a new feature that allows customers to pay multiple overdue invoices at once, which could speed up collections.
Xero’s mobile apps also received attention. The iPhone and Android versions now include more detailed profit and loss views, as well as smarter bank reconciliation tools. iPhone users can accept contactless payments directly through the app using Apple’s Tap to Pay, eliminating the need for separate card readers.
Behind the scenes, Xero partnered with OpenAI to give JAX web research capabilities. This means the AI can pull in current tax regulations and market information from public sources, rather than just crunching numbers from a business’s internal records.
Xero also enhanced Syft Analytics, a company it bought in 2024, by adding improved forecasting and a “business health score” feature. These Syft tools will be available at no extra cost for eligible customers.
The features are rolling out gradually, starting in Australia this month before expanding to the US and other regions. Users will first get access to instant financial data visualization, followed by automated bank reconciliation and strategic decision support capabilities.
The bigger automation race
Xero isn’t alone in this push. Intuit, Xero’s biggest competitor, just released Intuit AI Agents for its QuickBooks Online platform. Like JAX, Intuit’s AI assistant promises to automate routine accounting tasks for small businesses.
The competition demonstrates how accounting software companies are racing to eliminate the mundane tasks that consume business owners’ time, freeing them to focus on growth rather than wrestling with spreadsheets.
It’s part of a broader shift that’s been building for years. Traditional bookkeeping roles are evolving from data entry to strategic advice as AI takes over routine number-crunching tasks.
For small business owners who can’t afford full-time accountants, AI assistants like JAX could level the playing field if they work as advertised.
Xero has been in the game since 2006, when it began offering cloud-based accounting software primarily for small and medium-sized businesses. The New Zealand company went public in 2007 and trades on both Australian and New Zealand exchanges.
With these JAX updates, Xero is betting that AI automation will be the next major competitive advantage in the crowded accounting software market.