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Artificial intelligence has ushered in a new era of automation and efficiency in many industries, and finance and accounting are no exception.
Following are six ways AI can automate the traditional accounts payable process:
- Automated invoice data capture and extraction: AI-powered optical character recognition (OCR) software can scan and extract data from invoices – even complex invoices with hundreds of line items – and eliminate manual data entry. This reduces errors and accelerates invoice processing.
- Automated invoice validation, PO matching, and GL coding: AI algorithms can automatically match invoices with POs and shipping receipts (3-way matching) and flag any exceptions for human review. This streamlines the invoice matching and validation process. As more complex invoices get fed into the system, machine learning enables AP automation solutions to get smarter. AI can also match invoices with PO numbers from email subject lines and email bodies.
- Streamlined invoice approval workflows: AI-powered workflow engines can route invoices for approval based on predefined rules. The system learns from historical approval patterns to optimize routing.
- Intelligent data analytics: AI can analyze historical accounts payable data to identify patterns and trends. It can help predict cash flow, optimize payment timing, and negotiate better terms with vendors.
- Vendor matching and management: AI can match invoices against approved vendor and supplier lists automatically. AI can also assess vendor performance, helping organizations make more informed decisions about payment terms and vendor relationships.
- Fraud detection: AI algorithms can detect anomalies and potential fraud in invoices, helping prevent financial losses. Duplicate invoices can be identified automatically to prevent double payment.
AI-powered AP automation benefits all major industries
Thousands of companies, across all major industries, now use AI-powered AP automation solutions to reduce invoice processing costs from approximately $10-12 per invoice (or as much as $30 for complex invoices) down to $1-5 depending on the technology platform.
For example, following are three Alberta-based companies that have streamlined their accounts payable process with Contexture AP Automation:
AI-powered AP automation solutions deliver an opportunity for companies to eliminate manual invoice data entry, scale for growth, remain competitive, reallocate AP clerks to higher-value tasks, and leverage artificial intelligence and machine learning to streamline and automate accounting processes that have historically been very labor-intensive and time-consuming.