EP 7 – How AI is transforming bookkeeping: insights from Nicolai Thomson, Jenesys AI

4min Read

Artificial intelligence is redefining the future of accounting, and Nicolai Thomson, CEO and co-founder of Jenesys AI, is at the forefront of this transformation. In a recent episode of Silver Linings, he discussed how AI-driven solutions like Jenesys’ Jack is reshaping bookkeeping, automating compliance and freeing accountants to focus on higher-value advisory work.

Read the blog covering Nicolai’s key learnings here

Moving beyond automation: AI as an augmenting force

Jack, the AI-powered bookkeeping assistant developed by Jenesys AI, is designed to do more than just automate repetitive tasks. It aims to understand the context of financial transactions in real time, ensuring accurate reconciliation and providing valuable insights that accountants can act upon.

“This is not just about automation, but using AI to augment what you’re doing in the bookkeeping process to be able to provide really great data that your customers and your advisory services will hopefully use to transform businesses across the country,” Thomson explained.

AI: the next big leap in accounting tech

The accounting industry has undergone significant shifts, from traditional methods to cloud-based solutions. AI, according to Thomson, represents the next major evolution. However, its success isn’t just about implementing AI for the sake of efficiency.

“If someone just goes out there and says, ‘Oh, I need to put AI into the business,’ it appears to be like this silver bullet, right? But without specific contextual understanding, you’re not going to see the ROI you expected,” he cautioned.

The key to successful AI adoption, he argued, is rethinking workflows rather than simply layering AI onto existing processes.

Overcoming the fear of AI replacing jobs

One of the most pressing concerns about AI adoption is its potential to replace human workers. However, Thomson framed the conversation differently.One of the most pressing concerns about AI adoption is its potential to replace human workers. However, Thomson framed the conversation differently.

“When we talk about ‘Oh my gosh, is AI going to replace me?’ I’d challenge you to list out all the tasks you do – client engagement, internal collaboration, compliance work. AI is not here to take your client out for lunch or to build personal relationships. What it can do is take over the repetitive, transactional bookkeeping tasks, allowing you to focus on growth and advisory services,” he noted.

Rather than eliminating jobs, AI can enhance efficiency and help firms scale without continuously increasing headcount. This shift enables accountants to focus on strategic, high-value activities rather than manual data entry and reconciliation.

Tackling AI’s biggest challenge: hallucination

One of the biggest hurdles in AI adoption, especially for accounting, has been hallucination – where AI generates incorrect or misleading outputs. Jenesys AI initially built Jack using GPT models but quickly discovered the limitations when working with numerical data.

“When we were trying to mix numbers and words, we were getting lots of hallucinations,” Thomson admitted. “That’s why we had to build our own infrastructure – to create AI that learns from human input, follows accounting standards and applies contextual understanding.”

By developing a proprietary system, Jenesys AI ensures higher accuracy and reliability, making Jack a practical tool for real-world accounting applications.

The future: AI and human expertise working together

To bridge the gap between AI capabilities and real-world bookkeeping needs, Jenesys AI recently introduced Jackpot, a hybrid model that combines AI with human oversight.

“A lot of people looked at Jack and said, ‘This is great, but can you do the human bit too?’ And our answer now is yes. We’ve built a service where you can outsource the entire bookkeeping process to us, with AI doing the heavy lifting and experienced bookkeepers ensuring quality control,” Thomson shared.

This blended approach ensures that firms can adopt AI-driven efficiencies without compromising accuracy or trust.

AI: a tool for growth, not a threat

Ultimately, Thomson views AI as a tool that enables firms to expand their capabilities, not as a replacement for human expertise. The future of accounting, he believes, is about leveraging AI to improve service delivery, reduce manual workload and unlock new opportunities for advisory services.

“AI needs to step in and start to replace the answer of, ‘Can I just find a cheaper human?’ No, you can’t. But you can find a more efficient way to grow your business,” he concluded.

As AI continues to evolve, firms that embrace workflow transformation and AI-driven insights will be best positioned to thrive in the new era of accounting.

Subscribe to the Silver Linings podcast today

Discover the power of enhanced accounting with Silverfin.

More Posts

accounting intelligence

How accounting intelligence can give your firm a competitive advantage

Learn how to boost your firm with accounting intelligence. Save time, reduce errors and improve client satisfaction with Silverfin.
Read More

How BKL Maximises Efficiency and Profit With Client Automation Software for Accounting Firms

Is your firm struggling with human errors, duplication of work, and a lack of available resources? Client automation software for accounting firms is the solution. ...
Read More
Best of Breed technology

Is a best-of-breed technology approach the right choice for your accounting firm?

Full-stack software or a best-of-breed approach? Explore what's right for your accounting firm with insights from our recent webinar.
Read More

The future of AI in accounting: insights from Chris Downing at Sage

Unlock insights from Chris Downing on the future of AI in accounting, and the practical steps you can take to leverage its full potential
Read More
Keep your data safe in the cloud

Why and how the cloud is the safest place for your accounting firm’s data

Cybersecurity is a top priority for many accounting firms – and for good reason. In 2023, about a third of UK businesses experienced a cyberattack: ...
Read More

Moving on from Excel – Synergee Working Papers case study

This article speaks to Darren Austin, who co-founded Synergee 17 years ago, about the benefits Silverfin brought to his firm.
Read More

Make Your Working Papers Work: Comparing Top Tools

Bid farewell to the drudgery of manual data and spreadsheet management and say hello to intelligent digital templates. Learn more today.
Read More

AI vs Traditional Accounting: Which is More Efficient?

AI accounting automation software helps to enhance and optimise financial processes and tasks. The technology can help streamline operations and increase accuracy, doing much of ...
Read More

Using Post Accounting Software to Generate New Revenue Streams

Unlock the potential of your client’s financial data with post accounting software. This powerful tool goes beyond keeping track of numbers and helps improve consistency ...
Read More

How to create an AI policy for your accounting firm

In this exclusive AccountancyAge article, Silverfin’s CEO Lisa Miles-Heal delves into why AI guardrails are necessary for accounting firms to maximise the benefits the technology ...
Read More

Moving from legacy software to Silverfin

We were joined at a recent webinar by Mark Thurston Director at East Anglian accounting firm Gascoynes to discuss the firm’s move from legacy accounting ...
Read More
Dear Excel, it’s not you, it’s me. Knowing when it’s the right time to date other software

Dear Excel, it’s not you, it’s me. Knowing when it’s the right time to date other software

Many accounting firms still use Excel for managing client accounts, but a steady relationship with Excel may be holding them back. Here's why.
Read More

Let’s Chat

Scroll to Top