Stock Takes: New Xero CEO reveals biggest competition, AI experiments

The new United States-based chief executive of Wellington-born, Australian-listed software company Xero says we can still call it a Kiwi company.

“Of course you can!” Sukhinder Singh Cassidy said on the Herald’s Stock Takes podcast from Sydney this week, ahead of its annual Xerocon event.

“I really don’t think it’s about shedding our identity. I think it’s about expanding our identity,” she said.

Singh Cassidy is a Silicon Valley-based entrepreneur, author, executive and former Google Asia Pacific president, who took up the job to lead the growth of Xero’s cloud-based accounting software globally in November.

When asked why she wanted the job, Singh Cassidy spoke about the untapped opportunity for Xero among an international business community that still largely relied on pen and paper.

“We’re still very early in the penetration of cloud accounting. I would say, even in markets that are more mature, like Australia, we still have so much opportunity.”

To Singh Cassidy, Xero’s biggest competition was not another software provider or artificial intelligence, but manual spreadsheets.

“We still think our biggest competition is the shoebox and doing it on paper.”

Artificial intelligence (AI) was going to further enable businesses, she predicted.

Xero today revealed it was conducting AI experiments, including an assistant to onboard customers, as well as upgrades to its software platform, including predicting users’ regular invoice and bill payments and making payments twice as fast. It was partnering with US tech companies Amazon and Stripe to make the improvements.

A survey of 3000 small businesses in Xero’s key markets – New Zealand, Australia, Canada, Singapore and the United Kingdom – found half were experimenting with or investing in artificial intelligence, and 14 per cent of the businesses using it had already reduced headcount.

However, two-thirds said it had not changed their hiring plans for the next three years.

Hard choices

Reduced headcount is something Xero has grappled with under Singh Cassidy’s leadership.

Within her first few months, she cut Xero’s workforce by 15 per cent, impacting up to 800 roles, and exited a recent costly acquisition.

“We made some hard choices early,” Singh Cassidy said.

Those choices were decided following her tour of all eight offices globally, and a voluntary internal survey she conducted.

Singh Cassidy hoped she’d set an authentic tone for her tenure at Xero.

“I think this is what you hope for as a leader is when you come in, that you can create alignment to share truth quickly and they can operate with candour and transparency.”

The aim was to make Xero more profitable.

“We saw the opportunity to be more nimble and effective and efficient with our resources in our capital.”

Listen to the full podcast for more from Sukinder Singh Cassidy

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