AI and the Human Touch: Finding the Right Balance in Business

Artificial intelligence (AI) is everywhere right now. From chatbots to smart forecasting tools, technology is transforming the way businesses work.

In accounting, automation can scan receipts, reconcile transactions, and generate reports in seconds.

But… no matter how advanced the technology gets, the human touch will continue to matter. In fact, it’s often the combination of both that creates real value for small and medium-sized businesses.

What AI Does Best

AI is brilliant at handling repetitive, rules-based tasks. It works quickly, doesn’t get tired, and reduces human error. For example, AI can:

• Spot unusual spending patterns that might point to fraud.

• Automatically categorise expenses and bank transactions.

• Forecast cashflow based on historic data.

This saves time, cuts costs, and gives business owners faster access to reliable numbers.

What Humans Do Best

AI falls short in understanding context. It can crunch data, but it doesn’t know your goals and dreams, your team dynamics, your local market – or any other unique/personal information that can only come with a real-life relationship. That’s where people - and especially experienced advisors - come in.

Humans bring:

• Judgement – weighing up options when the numbers only tell part of the story.

• Empathy – understanding the pressures and ambitions behind a business decision.

• Creativity – seeing opportunities that don’t exist in the data yet.

For instance, AI might show that a product line is underperforming, but a business owner (with their advisor) might decide to keep it going because it’s strategically important or has long-term potential.

The Sweet Spot: AI + Human Insight

The real power comes when AI and human insight work together. Think of it this way: AI gives you the “what” - the data, the patterns, the predictions. A trusted advisor helps with the “so what?” - what to do with that information, and how it aligns with your vision.

For SMEs, this combination means:

• Better efficiency.

• More time to focus on growth instead of admin.

• Clearer insights to guide decision-making.

• A partner who can interpret data and advise on strategy, not just compliance.

Why This Matters for Small Businesses

Large corporations have whole teams of analysts and consultants. SMEs don’t. But with AI tools integrated into systems like Xero, and the right advisor by your side, smaller businesses can access the same level of insight - without the hefty price tag.

The difference is that your accountant knows you, your business, and your ambitions. That personal understanding is what makes the data useful.

Final Thought

AI frees up time and brings clarity, so humans can do what they do best: think strategically, build relationships, and drive businesses forward. For SMEs, embracing both sides of the equation is the smartest strategy of all.

If you’d like to explore how AI tools could support your business strategy - while keeping the human touch front and centre - we’d be happy to chat.