Thomson Reuters Ventures’ Post

Energized after a week with my legal, compliance, and policy colleagues. No surprise, we talked a lot about #AI and how it can power #consumer and #smallbusiness. Reflections: 🚦Look beyond the noise, you'll find #AI is performing the mundane tasks for #smallbusiness. Example: time consuming work like collecting invoices, #AI can do that for #SMBs so they can get paid faster and focus on growing their business. 🚨 Leaders like Heather Jordan Cartwright reminded us it's ok to be uncomfortable with #AI but let's ask ourselves the tough questions. If #AI is getting the work done in a more efficient manner, does it matter that it's #AI? Sometimes no, sometimes yes. Think about the level of risk involved. 📜 Policymakers have an important role to play in ensuring #AI works for everyone and the appropriate guardrails are in place. Intuit General Counsel Kerry McLean reminds us to consider #smallbusinesses when regulating #AI. https://lnkd.in/gSPcexCq

In a break from the usual D&I related programming I thought I'd share a little something related to the day job. Fred Ward and I have been considering the ever present 'what about AI?' question that seems to be asked on an almost daily basis. In particular we are have been focused on how Professional Services firms should think about the critical strategic questions that AI really raises (beyond the surface level). Specifically we are interested in understanding: What is the nature of the competitive threat I face, and how can I create a sustainable competitive advantage? Even if I can be front footed on GenAI, what are the implications for my business commercially and financially? What is the right speed of adoption for me? Should I leave others to lead the way and act as a fast follower? What are the risks and rewards of doing so? If you're interested in finding out more check out our article below and do reach out if you'd like to discuss this further. #GenAI #ProfessionalServices #Strategy

It’s the other way around now 🔄 New SaaS -> Service-as-Software We’ve all heard of 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲-𝗮𝘀-𝗮-𝗦𝗲𝗿𝘃𝗶𝗰𝗲. But with generative AI, the script is flipping - welcome to 𝗦𝗲𝗿𝘃𝗶𝗰𝗲-𝗮𝘀-𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲! Traditionally, service-based businesses like law firms, accounting firms, and IT services have struggled to attract venture capital.  Why? Their reliance on human capital made scaling tough and profit margins less appealing than SaaS. But thanks to generative AI, that’s all changing. AI is automating repetitive workflows, from document review and accounting to software development and beyond. 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗽𝗿𝗼𝘃𝗶𝗱𝗲𝗿𝘀 𝗰𝗮𝗻 𝗻𝗼𝘄: • Operate at lower costs • Scale without massive headcount increases • Deliver services faster and more efficiently 𝗪𝗲’𝗿𝗲 𝘀𝗲𝗲𝗶𝗻𝗴 𝘁𝗵𝗶𝘀 𝘀𝗵𝗶𝗳𝘁 𝗶𝗻 𝗮𝗰𝘁𝗶𝗼𝗻: 👉 Law firms are using tools like Spellbook and Casetext for efficient research and contract reviews. 👉 Accounting firms are adopting AI-powered platforms like Materia for faster service delivery. 👉 Outsourced software developers are leveraging co-pilot platforms for code creation, bug detection, and more. As these tools reshape the landscape, service firms can adopt subscription-based models, blending automation with human expertise to scale like never before. Whether through new AI-first startups or roll-ups of traditional firms, the future is clear: AI-powered service providers are here to stay. #GenerativeAI #VentureCapital #SaaS

The interest in AI that these firms demonstrate is matched by the growing AI appetite among software providers and other financial technology firms across the financial services space. Data published this month by Stamford, Connecticut-based business advisory and research firm Gartner predicts that roughly 80% of vendors will integrate generative AI into their enterprise applications by 2026 — up from less than 1% in 2023. But experts warn that with rapid adoption of new technologies, comes new challenges. Diligent leaders can start by establishing an AI working group within their organizations composed of team members with different skill sets across various departments, and should ultimately be led by IT, Amanda Wilkie, a consultant for Boomer Consulting Inc., said in an opinion article for Accounting Today. #accounting #artificialintelligence

For those interested in AI M&A, I highly recommend the below article. Thanks Matthew A. Black for the plug. The future of tech roll-ups with Synthetic Software Roll-Ups... Instead of acquiring entire businesses, this approach focuses on leveraging AI-driven platforms to enhance efficiency and unlock value in legacy industries without the full acquisition cost. It’s a leaner, faster strategy that can scale quickly while mitigating traditional roll-up risks. AI is rewriting the playbook for multiple arbitrage and this article reinforces why and how AI can actually work for many acquiring firms. Whether it's acquiring a platform for vertical SaaS or acquiring SaaS for a platform. AI will provide cost savings and operational efficiencies in nearly every industry vertical. Question is, how do you source the right AI company/team to move your market?

Enterprise #accounting firms are targeting #AI investment via alliances and acquistions. CLA (CliftonLarsonAllen) makes a big move by looking across the ocean to add British AI startup Engine B. Via Sara White and Accountancy Daily: ▶ "A relatively new start-up, Engine B was set up in 2019 and specialises in delivering generative AI solutions for accountants, auditors and tax professionals, providing deeper insights and advanced data manipulation and analysis, using generative AI and large language models (LLMs). The acquisition of Engine B was finalised on 1 May and is part of a $500 million (£400m) investment in digital technology and AI by CLA. The value of the deal was not disclosed. Jen Leary, CEO of CLA said: ‘CLA is investing in the future of our people, of our clients and our profession. With the addition of Engine B, CLA is becoming a force for positively disrupting the profession, creating a path for our professionals to spend more time directly with clients, leaning into our promise to know and help them." The big trend for the rest of the year will be large firm and #privateequity looking to buy as many #AI and #DigitalTransformation assets as possible. I also expect the mirror effect will be in place as smaller firms, agencies, and Fractional groups emerge once the ink is dry on purchase agreements. Things are definitely moving. Is your business buying or selling right now? https://lnkd.in/eHSKsbSr

It's an honor to have Intuit be one of the first companies to sign the new EU AI Pact. Our belief in #ResponsibleAI and #DataStewardship guides everything we do for our customers and is helping us shape the next generation financial services platform for consumers and small and medium-sized businesses. Read more in Kerry McLean's note below. #privacybydesign #poweringprosperity #AI #SMB #EUAIPact

We’re proud to share that Intuit has joined the European Commission AI Pact, reinforcing our commitment to responsible AI. By signing this pact, we’re taking proactive steps towards the implementation of the EU's AI Act.   Every small business owner wears multiple hats — from CEO, CFO, and CMO to stocking shelves and delivering orders. Intuit’s AI-driven expert platform delivers delightful experiences for our customers by enabling them to do more by serving personalized insights, providing expert advice, and helping owners make informed financial decisions. By democratizing access to AI, we’re helping small businesses to beat the odds and compete with their larger competitors.   Our Intuit QuickBooks Small Business Index Annual Report found a direct correlation between increased use of AI-powered digital tools and revenue growth. Small businesses leveraging multiple digital tools reported 2X revenue growth and 3X workforce growth.   AI must be used and deployed responsibly. All Intuit products are built in keeping with our strong commitment to data privacy, security, and responsible AI governance. We take a multi-disciplinary approach to operationalizing responsible AI and data governance. This includes internal review, executive-level oversight, employee training, and channels for stakeholder feedback.    As leaders in responsible AI, Intuit is proud to be early supporters of this initiative.   Read more here: https://lnkd.in/gf9rbyKF    

🚀 "AI is the new internet." 🌐 This striking statement from Xerocon urges us to reflect on the transformative power of artificial intelligence in our industry. As accountants, it's crucial to keep an eye on these advancements. Just as the internet revolutionised our world, Xerocon was a wakeup call for accountants everywhere that AI is poised to redefine how we manage and interpret financial data. Embracing these changes will undoubtably be essential for staying ahead and providing top-tier services to clients of the future. At Lewis Brownlee, we believe in staying at the forefront of technological innovation and keeping a keen eye on what is up and coming. So, as you might expect from Xero Platinum Partners, we are always keen to utilise and keep abreast of Xero's advanced tools to deliver exceptional efficiency and insights. Xero's capabilities streamline processes, enhance accuracy, and offer real-time financial clarity, empowering businesses to make informed decisions. So, while AI is a significant trend to watch, integrating robust platforms like Xero ensures we're always equipped with the best technology available come what AI may! If you haven't already discovered how Xero can elevate your accounting processes, do call us today at one of our three amazing offices - and let's see how we can partner in your Xero (and maybe even future AI?) success! #Xerocon #AI #AccountingInnovation #Xero #PlatinumPartners #FinancialInsights #FutureOfAccounting

Do you know that generative AI is reshaping business workflows, promising a 1.5% boost in global productivity? This efficiency gain, where decisions in financial services are made in real-time, has become game-changing, allowing professionals to redirect their time toward higher-value tasks. But hold on! The financial sector, known for its stringent regulatory oversight, will be under the spotlight as #generativeAI takes center stage. Read more detailed insights: https://lnkd.in/gC8fUQHe #accounting #financialservices #technology