Xero expands AI capabilities and US service offerings

Xero has announced a series of product updates and AI integrations aimed at automating financial management for small businesses and accountants. At the Xerocon US event, the company introduced new capabilities for its agentic platform, JAX, which integrates with tools such as Claude, Microsoft 365, and ChatGPT to bring live financial data into existing workflows.

Key updates include enhanced automation for bank reconciliation, which Xero claims can reduce the time spent on monthly tasks by approximately 50%. The platform also features smart document capture to extract data directly into the ledger and an upgraded Partner Hub that provides real-time visibility into book health, duplicate detection, and unusual cash flow patterns.

To strengthen its presence in the US market, Xero is also expanding its service offerings through new partnerships. This includes the launch of Xero Payroll, powered by Gusto, and the introduction of Melio Expense Management. These additions are designed to unify accounting, payments, payroll, and tax functions into a single connected platform.