How Artificial Intelligence Enhancing Accounts Payable

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How Artificial Intelligence Enhancing Accounts Payable

Sarah Dawson, CFO Tech Outlook | Monday, May 10, 2021

Artificial intelligence and machine learning models have driven AP processes to decrease manual dependence for task execution. 

FREMONT, CA : AI has recently influenced accounts payable. Significant progress has been made in finance and procurement processes in the last few years. There has been an enormous movement to automate manual and strategic activities, especially in accounts payable. The push is causing global enterprises to focus and, as a result, implement process improvement projects.

CHANGE IN STRATEGIC OUTLOOK FOR ACCOUNTS PAYABLE

The new competitive landscape appears to be positioning AP at the frontline of driving growth and serving as a tool for strategic foresight. Compared to the old traditional connotations of accounts payable, this streamlines and automates accounts payable procedures, offering better visibility and control over essential financial data.

Companies can remove the manual parts of accounts payable rather than automating them due to the numerous advancements made with process-level improvement. The main objective here is to move faster, reduce errors, and assist the company in scaling rapidly.

The next wave of advancement aims to make AP an autonomous function by leveraging AI technologies. Existing operational automation must be augmented with cognitive automation to generate more measurable and strategic value.

EVOLUTION OF ACCOUNTS PAYABLE AUTOMATION

AP departments throughout companies have long used RPA and OCR technologies. Most of these technologies are used to augment manual AP tasks and are commonly referred to as "AP Automation."

With the transforming level of global business, these technologies have become outdated. The goal of next-generation Artificial Intelligence is to implement cognitive automation while reducing the need for manual intervention.

Reasons Why Companies Need to Invest in Ap Automation

Cost-cutting And Additional Savings:

Recognition and streamlining of operations to reduce expense and uncover additional savings are the AP function's primary objective. Companies can redeploy FTE and save up to 60-75 percent on costs while lowering costs per invoice processed by up to 60 percent.

Saves Time And Improves Accuracy:

Due to the nature of manual AP activities, they are prone to errors, likely to result in occasional breakdowns, additional checks, slower TAT, and scaling issues. Companies can increase efficiency and productivity per FTE and decrease invoice processing time by up to 65 percent.

Better Supplier Relations:

Enhancing supplier relationships is critical for cost reduction, supply chain volatility, and better discounts. As a result, organizations must ensure immediate grievance redressal and proper correspondence. By augmenting present technologies with AI technologies and external stakeholder collaboration, one can streamline and automate.

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