Stuart Miller
Director of Public Policy and Tech Research, Xero
AI promises to create insight and capacity for small business owners. But without the right skills and leaning on experts to help, it can have risks.
When a small business uses artificial intelligence in a thoughtful, safe and well-managed way, the results can be game-changing. “There’s no doubt that it offers strong efficiency gains,” says Stuart Miller, Director of Public Policy and Tech Research at Xero, the small business platform. “By reducing manual, repetitive, low-value tasks, AI can save a business valuable time that can be reinvested back into the most important things.” That’s particularly true when it comes to managing finances, which are often the heaviest part of a small business’s workload.
AI’s promise and peril for small businesses
According to research from Xero, two in five small business owners (38%) cannot say whether their business was profitable in the previous month.1 However, AI and digital tools can help them get on top of their numbers and work more efficiently with their accountant or bookkeeper. “Let’s face it,” admits Miller. “No owner started their business because they love bookkeeping, tax, payroll or spreadsheets. That’s not what they want to do. But there are tools that help streamline things like uploading receipts and coding expenses in seconds, or that automate chasing payments.”
Among small firms, the excitement about AI is certainly real. According to Thryv, one third of small businesses save 11 to 20 employee hours per month using AI;2 while Salesforce research notes that 91% of small and medium businesses using AI say it boosts revenue.3
If you lack confidence when using AI tools,
seek out proper training and advice from those with true AI experience
Yet, the risks of AI are real too. The technology is not infallible, so what happens if it produces inaccurate outputs? That might not just be a potential inconvenience for a small business; it could have stronger repercussions. No wonder small business owners are currently being pulled in two different directions.
A blend of tools and working with experts
However, this accountability gap can be closed using a blend of AI-enabled tools in close collaboration with experts, such as accountants and bookkeepers. Having a human in control at all times is crucial, stresses Miller. “We never suggest businesses blindly trust AI,” he says. “As good as it is, it’s not always 100% accurate.”
To ensure the right guardrails are in place, Miller recommends that small business owners create their own AI governance policy when using AI in any part of their business. They should also appoint a member of staff to regularly review the tools that are being used — and understand which employees are using them. “Check which models are subscription only and which are non-subscription,” says Miller. “And when you sign up for something, always review the terms and conditions so that you know where your data is going and how it is being used.”
If you lack confidence when using AI tools, seek out proper training and advice from those with true AI experience. This might be your accountant or bookkeeper, but Miller also suggests investigating available AI skills support from local business networking groups and local Chambers of Commerce. “We recently ran a workshop in Barnsley with eBay and BT, helping local businesses build their AI skills. It’s always worth looking out for local events like these to connect and learn from your peers too.”
Used wisely, AI can help small businesses thrive in the digital age. “That is so important,” he says. “Because these firms are a vital part of the UK economy.”
[1] Xero report, 2025. Unlock your numbers: Empowering financial confidence for small business growth. tinyurl.com/62kmjtdp.
[2] Business Wire, 2025. New survey data from Thryv finds 51% of small businesses expect to use AI by end of 2025. tinyurl.com/bd4saszj.
[3] Salesforce, 2024. New research reveals SMBs with AI adoption see stronger revenue growth. tinyurl.com/5rjm395u.
