Intuit Sees AI Driving Big Changes for Small Businesses

All artificial intelligence (AI) systems are software, but not all software is AI.

At least, not yet. Embracing the AI-ification of everything was the theme of accounting and tax software provider Intuit Inc.’s Q1 2025 earnings call on Thursday (Nov. 21), where executives highlighted the success of the company’s AI-driven strategy.

“We’ve had a strong start to the year as we demonstrate the power of Intuit’s AI-driven expert platform strategy. By delivering ‘done-for-you’ experiences, enabled by AI with access to AI-powered human experts, we continue to fuel the success of consumers and businesses,” said Sasan Goodarzi, Intuit’s chief executive officer. “Our innovation and the proof points we’re observing continue to bolster our confidence in our strategy.”

On Wednesday (Nov. 20), Intuit added a generative AI-powered financial assistant to QuickBooks designed to help small- to medium-sized businesses (SMBs) by generating estimates, invoices, bills and payment reminders and delivering personalized recommendations.

In addition to its QuickBooks software, Intuit is the parent company of TurboTax, Credit Karma and Mailchimp.

The company said in September that it would introduce agentic AI capabilities this coming December and continue rolling them out through 2025, adding them across its platforms and products.

PYMNTS Intelligence finds that, among those who have tried AI, 96% of SMBs believe it to be an effective tool.

Read also: Big Tech’s AI Tools Are Helping Democratize Growth for Small Businesses

Small Businesses Want Digital Simplicity

Intuit, a household name in the world of financial software, has grown from its roots in personal finance to become a multifaceted provider of tools for small businesses, consumers and self-employed individuals.

Intuit’s latest financial results revealed revenue growth across various segments, particularly in Global Business Solutions and Credit Karma. Overall revenue increased by 10% year-over-year to $3.3 billion.

“We delivered strong first quarter fiscal 2025 results across the company driven by our Global Business Solutions Group and Credit Karma,” said Sandeep Aujla, Intuit’s chief financial officer. “We are confident in delivering double-digit revenue growth and margin expansion this year, and we are reiterating our full year guidance for fiscal 2025.”

QuickBooks Online Accounting revenue grew 21% in the quarter, driven by customer growth, higher effective prices and mix-shift; while the whole of the Global Business Solutions Group revenue grew to $2.5 billion, up 9%, and Online Ecosystem revenue increased to $1.9 billion, up 20%.

Credit Karma revenue grew 29% to $524 million, fueled by growth in personal loans, auto insurance and credit cards.

Despite some declines in other areas, including Consumer Group revenue — which declined 6% to $176 million, primarily due to lapping the extended tax filing deadline for California filers in the prior year — Intuit expressed confidence in its AI-driven strategy and future performance.

Read more: Intuit Rolls Out Product Suite for Mid-Market Businesses

Intuit reiterated its full-year guidance for fiscal 2025, expecting double-digit revenue growth and margin expansion. The company projects revenue to be between $18.160 billion and $18.347 billion, representing a growth of 12% to 13%.

The demand for intuitive, cloud-based financial software is in part being driven by the growing complexity for businesses of managing financial data spread across multiple enterprise applications. Traditional tools like spreadsheets, once the backbone of accounting operations, are increasingly falling short in meeting the needs of today’s finance teams, particularly the understaffed ones of small businesses.

Still, the company’s shares fell Thursday by around 8%, as of reporting, in extended trading after giving a sales and profit outlook that was shy of estimates. And as the company seeks to sustain its trajectory of growth, it faces a delicate balancing act: navigating intensifying competition, addressing regulatory scrutiny and maintaining innovation in an evolving economic landscape.

For example, PYMNTS covered that Intuit and H&R Block saw their stocks drop 5% and 8%, respectively, on Tuesday (Nov. 19) after a media report that the incoming Trump administration is considering a free tax-filing app.