Founded in 2008, 361 Degree Consultancy is both an accounting firm and a Xero software integrator. Today they provide around 1,700 small and medium-sized businesses with a comprehensive suite of services including accounting, auditing, tax preparation, and government grant advisory.
The company itself is a keen adopter of new tools to improve their work, and is currently exploring different AI solutions in order to provide more value-added services to their clients. SMEhorizon speaks with Ken Leong, Director, 361 Degree Consultancy Group, on his company’s adoption of this new technology. Koren Wines, Managing Director, Asia, Xero, also shares on the possibilities AI brings to SMEs, and how they can best leverage it to their advantage.
Gaining an edge in a competitive economy
Like many companies, faced with the challenges of Singapore’s competitive economy, 361 Degree Consultancy turned to technology to gain an edge, partnering with Xero in 2016 in order to upgrade and replace their existing system.
Today, AI empowered tools are of particular interest. Wines shares that while “there is no doubt that AI is a game changer, but as with all new innovations and technologies, users often initially have questions, concerns, and sometimes even scepticism or fear about its application.
“Last year, we commissioned a study to better understand small business sentiment on AI, surveying 500 business owners across Singapore. The study found that although two-thirds of the island’s business owners were optimistic about AI’s benefits, such as increased productivity and task automation, they also had concerns.
“Respondents were worried that the development and adoption of AI might outpace regulation and raised ethical dilemmas, including the risk of sensitive information disclosure and data privacy violations. Compounding these challenges is an ongoing tech talent gap that can hinder effective AI implementation.”
Fortunately, adds Wines, developments in Singapore are encouraging, with the government launching the AI Verify Foundation, a comprehensive framework for AI regulation, in collaboration with the tech industry to shape future standards locally and internationally, along with a discussion paper on AI risks and governance.
She also points out how “in December last year, the government unveiled the National AI Strategy (NAIS 2.0), along with a broader pledge of over SGD 1 billion towards AI computing, talent, and industry development in the 2024 federal budget in March.”
“As AI use and adoption become increasingly mainstream, we’re also seeing a growing number of small businesses taking proactive steps,” she adds. “including employee training on AI bias and clear usage guidelines and taking advantage of public sector initiatives like the generative AI sandbox to provide small businesses with opportunities to experience generative AI solutions across marketing, sales, and customer engagement.
“Looking ahead, we anticipate a significant reduction in these challenges as regulations and use cases mature. Singapore’s national push on AI is a significant indicator of what the future holds.”
Taking the plunge
The initial caution described by Wines was also observed by Leong within his own company.” Many of our employees are still adopting a wait-and-see approach when it comes to AI adoption,” he shares. “There are two camps of people – one ready to embrace AI, but unsure how to, and the other who feels that AI is overrated. As a leader what I am doing personally to change mindsets within my team is to continue experimenting with GenAI tools, and showcasing the results to my colleagues.
“This is an ongoing process, but the eventual goal is to encourage increased uptake of the technology by showcasing how simple it is to work with GenAI.”
Meanwhile, working with a range of AI empowered tools, including Xero’s GenAI solution, Copilot and custom GPT, the benefits are already becoming clear for the company. Says Leong, “GenAI has significantly streamlined our marketing efforts in particular. By automating content creation tasks such as developing articles, social media content, and images, we have freed up valuable time for our team to focus on more strategic initiatives which require higher levels of creativity and critical thinking.
“While the best results are obtained by humans building upon AI-generated content, the time and effort saved for us are significant.”
Leong is also looking into Xero AI tools that will make their customer interactions more efficient and accurate, as well as helping non-accountants handle complex accounting tasks. With the accelerating pace of GenAI innovation”, says Leong, “we envision a future where GenAI becomes an essential part of every accountant’s toolkit, extending beyond mere automation to deliver in-depth reporting and forecasting for clients.”
“Using GenAI to generate report summaries or even analyse market data to identify broader industry trends helps accountants quickly prepare reports in a bite-sized, easy-to-understand format. This empowers accountants to more effectively convey financial analyses to businesses and assist in planning, allowing them to provide more value-added services to their clients.”
A future with AI
According to Wines, “as SMEs navigate economic headwinds, the need for sharp and insightful financial management will be key to their long-term success. AI’s fast and accurate reporting of a company’s finances can significantly accelerate business growth by providing timely and precise financial insights, allowing businesses to make informed decisions quickly, optimise their operations, identify opportunities for cost savings, and strategically plan for the future.
“The enhanced efficiency and accuracy provided by AI can lead to better financial management and improved overall performance.”
Overall, the future looks rosy for AI in Singapore. “In Singapore,” Wines continues, “two-thirds of entrepreneurs are open to AI, recognising its potential to automate tasks, expand capabilities and free up resources for higher value, strategic work. This enthusiasm for AI, coupled with growing government support for Ai adoption, puts Singapore at the regional forefront of leading and leveraging this exciting technology. As the nation looks to embrace AI’s many functions, the successful integration of AI will depend on businesses’ ability to be agile.”
For smaller companies looking to harness these capabilities, Leong suggests the following steps:
- Identify a pain point: Don’t jump on the AI bandwagon just because it’s trendy. Instead, focus on specific areas where AI can address existing challenges. For example, many small businesses lack a dedicated marketing team. This would be an excellent area for AI assistance, where GenAI tools can help to create basic social media content or customer emails to boost overall brand awareness.
Wines agrees, suggesting that businesses start by identifying specific use cases where AI can have the most impact, such as automating repetitive tasks, enhancing marketing efforts or improving customer service. - Start small and experiment: Brands shouldn’t expect perfect results from their GenAI tools right away. A more viable approach would be to begin with limited AI solutions, observe how they integrate into your workflow, and make adjustments where necessary to achieve the best results.
- Don’t over-trust AI: While AI is great for generating first drafts or automating tasks, it’s not perfect. AI-generated content is often only as good as the data the AI has access to. This means that content produced by GenAI often needs to be proofread or edited by human teams to ensure factual accuracy and quality and that it remains aligned with branding guidelines.
To this, Wines adds that businesses should invest in training for staff to build AI expertise and literacy. “Additionally, importantly, consider the ethical and legal implications of using AI to ensure compliance with relevant regulations and maintain transparency with customers and accuracy of content and data,” she adds. - Embrace the digital ecosystem: Taking time to understand the available tools in the market is an essential step to identify the best solution for your needs. Business leaders should take time to explore various platforms, speak to their peers or technology advisors, and learn what tools are highly rated within the industry. This will help you identify the right solutions to enhance your service offerings.
