2025: The year AI becomes the accountant’s ultimate partner

Ben Richmond is Managing Director, North America at Xero.

WHILE accountants have long adopted technologies to streamline workflows, the rapid rise of AI is poised to do more than optimize — it’s set to transform.

We are heading into an era of productivity where it will be increasingly accessible to interact with technology using natural, conversational prompts while distilling complex data—like lengthy documents or spreadsheets—into concise, mobile-optimized summaries. Emerging tools, like generative AI (GenAI) and large language models (LLMs), are breaking barriers that once limited intuitive, mobile-first solutions, empowering accountants and small business advisors in unprecedented ways.

As I look ahead, 2025 promises to be a pivotal year—a moment where AI and mobile technology converge to redefine how accountants work, solve problems, and support their clients. Here are three ways this shift will unfold.

Reducing ‘Toil’ Tasks

The bulk of the burden that will continue to be lifted from accountants through AI will be through significantly reduced 'toil' tasks, like categorization, document retrieval, and follow-ups. Repetitive, time-consuming tasks like reconciling transactions and routine report creation will naturally become a thing of the past as AI technology is adopted, freeing up accountants to focus on high-value work that drives real impact, like strategic advisory.

This shift will enable accountants to prioritize what truly matters: helping clients navigate challenges, solve complex problems, and deliver insightful, strategic guidance.

Enabling New Creative Approaches

AI isn’t just about automation—it’s about enhancing human potential, empowering accountants to become strategic leaders for their clients at a scale that was once impossible.

As it becomes more embedded into workflows, AI has the potential to not only streamline existing practices but also unlock creative new ways to serve clients. This would enable advanced data segmentation tailored to industry-specific needs, positioning accountants to increase scenario planning and forecasting abilities to guide clients towards data-driven decision making for their business.

Facilitating Seamless Integration

Collaboration with AI will become increasingly seamless. For example, take Xero’s AI smart business companion, Just Ask Xero (JAX), that supports small business owners and their advisors complete tasks like generating an invoice more easily than ever before. Instead of seeing AI as a support tool, technologies like JAX will soon act like digital assistants – extra team members available to help out.

Now let me be clear: AI is not here to replace accountants. Instead, it’s here to make them indispensable. The essence of accounting isn’t just balancing books or running ledgers—it’s about trust, relationships, and being there for clients in moments of need. AI can’t replace accountability or empathy, and clients value the human expertise that ensures their business is compliant, strategic, and forward-looking.

Over the next year, AI will surely help accountants and bookkeepers reduce manual, time-consuming tasks and help streamline their workflows. However, when we look at the future of AI implementation, it should no longer be purely about efficiency, but instead about imagining what’s possible when mundane tasks are no longer a barrier.