The best boring businesses to automate with AI

There’s a massive opportunity right now to take boring, cash-flowing businesses that are still running off fax machines and manual processes…

And implement AI to automate 90%+ of their operations.

Back when I worked at JP Morgan, I saw private equity firms pay millions for businesses they could monetize with simple tech upgrades.

Now I'm doing the same thing, but with Main Street businesses and AI.

Millions of profitable businesses are owned by boomers who barely know what AI is, let alone how to use it to 10X their efficiency.

So today, I’m kicking off a short series covering some of the best businesses you can buy and scale by automating with AI.

First up? Accounting firms.

Why accounting firms are ripe for AI automation

I've been acquiring accounting firms for awhile now, and the inefficiencies I see are mind-blowing.

These businesses are goldmines wrapped in outdated processes.

Picture this…

Many accountants spend entire days manually entering data that AI could process in minutes.

Tax preparers still work nights and weekends during busy season, when software could handle 70% of the work automatically.

It's like watching someone try to dig ditches with a spoon!

These businesses are perfect targets for a handful of reasons:

1. Most owners are boomers looking to retire.

2. They price their firms at just 1 to 1.1X annual revenue of the previous year.

3. Clients rarely leave (even after ownership changes).

4. Revenue is predictable and recession-proof.

After acquiring a firm, here’s how I’d implement AI to scale it (and make life easier for everyone involved)…

The 3-step AI playbook for accounting firms

1. Automated bookkeeping

AI can now categorize transactions, reconcile accounts, and complete monthly books with minimal human intervention.

This could reduce time spent on these tasks by over 80%!

It also minimizes human error and allows for real-time financial reporting.

2. Tax preparation assistance

AI can identify deductions that businesses qualify for, flag potential audit risks, and even complete entire tax returns for review by the accountant.

This increases accuracy and compliance while reducing preparation time by 50% to 70%.

The result? You can 2X or 3X the number of clients you can take on, with no additional staff needed.

3. Client communication

You can implement AI chatbots to handle frequently asked questions, about things like:

• Basic tax advice

• Upcoming deadlines

• How your staff handles different processes

These bots can work 24/7 and give your clients instant responses any time of day…

Freeing up your staff to focus more on high-value, revenue-generating activities.

With better client communication, satisfaction will increase and churn will go down…

And by automating with AI, you can increase margins between 15% and 25%, and reduce your team’s workload.

Not bad!

This is just the start…

On Thursday, I’ll share the next business model that’s dying to be automated with AI.

Before I leave you…

I occasionally share acquisition opportunities with subscribers on this email list.

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Onward,

— Ben Kelly