Many years ago, I had already come across reports about the AI industry. At that time, the development of AI was relatively slow due to several reasons: limited computing power, lack of sufficient and accessible data, algorithm bottlenecks, and the difficulty of commercialization. Early AI remained mostly in academic or research settings, lacking mature applications that could integrate with industries. Investors could see its “future,” but short-term monetization was weak and uncertain.
By contrast, SaaS (Software as a Service) was much more attractive. Its subscription-based model meant stable and predictable cash flow. For investors, the return model was clear, unlike the uncertainty of early AI. At the same time, SMEs were rapidly digitizing and urgently needed cloud-based ERP, CRM, accounting, and HR solutions. SaaS fit these needs perfectly, and the market was huge.
SaaS development relied primarily on the maturity of the internet and cloud computing, rather than breakthroughs in algorithms or massive datasets. This made it easier for startups to enter and scale. Once a SaaS product was developed, the marginal cost of adding new users was extremely low, allowing rapid expansion. In contrast, AI projects at that time often required highly customized solutions and were difficult to scale.
Xero is one of the best examples of SaaS. It is not only one of New Zealand’s most successful SaaS companies but also a global leader in cloud-based accounting. Many of us can still recall those radio ads for Xero more than a decade ago—I myself remember hearing them while driving. And as Oracle founder Larry Ellison once expressed, “The most important thing in business is timing.”
Today, if you look at the media, AI dominates the headlines. You often see reports about multinational companies laying off staff, or predictions of which jobs AI will replace. When I first read these stories, I felt a knot in my stomach. For a traditional and somewhat “old-fashioned” industry like accounting, the potential for disruption is undeniable. Naturally, I worried about the sustainability of our current business model and future growth.
Over the past few months, I’ve invested significant time exploring and testing AI systems, while encouraging my team to actively experiment and share their experiences. As we’ve become more familiar with these tools, I can’t help but reflect: when I started my business more than ten years ago, many of my ideas required enormous human effort and capital to execute. Some ideas I never pursued at all, fearing they couldn’t be monetized. But now, at this point in time, it truly feels like the right moment to start new ventures.
I believe our employees will not lose their jobs to AI. However, they must adapt—changing the way they think and work. They need to push themselves to complete their current tasks efficiently while also making time to learn and grow. The future of work, opportunities, and wealth will belong to those with a developmental mindset, who work diligently and embrace change. Conversely, repetitive or stagnant work, which lacks depth or creativity, will fade away and generate little economic value.
New Zealand’s population is small, which makes it even more critical to harness AI as an enabler across all industries. If we want to remain competitive on the international stage, and if we want to build wealth for the next generation, then our generation must get on board with this technological tailwind. We need to work hard while also improving our business models, maximizing our ability to create wealth for ourselves and our families within the limited time and energy we have.
As I write this blog on September 28, 2025, at around 9:42 p.m., I imagine that many SME owners are still checking emails, organizing bills, replying to quotes, and preparing for the week ahead. Now picture a different future: you pick up your morning coffee, and AI has already mapped out your day. A 24/7 AI system has completed your quotes and interfaced directly with your clients—or even their AI systems. You and your team can focus entirely on on-site work. By the time you finish your day, AI has already prepared payroll for you and your staff. The weight of stress has shifted into the power of productivity.
In that future, SME owners will truly be able to maximize their value and fulfill their dreams.
I look forward to the possibility of crossing paths with you on this journey. And I sincerely wish every hardworking person out there strength and success.