Accounts payable remains one of the costliest financial functions.
This can largely be blamed on the data entry, paper shuffling, document filing and retrieval and other manual tasks that most accounts payable departments use to approve and post invoices.
But digital technologies such as artificial intelligence (AI) and machine learning (ML) are changing all that. Digital technologies automate the manual tasks that are the primary driver of high accounts payable costs.
For starters, digital technologies eliminate the need to manually key invoice data such as invoice amount and due date. Advanced platforms use ML, natural language processing, AI and other technologies to continuously learn supplier invoice formats without human operator configuration. The platforms understand the physical location of information on invoices, and parses data with greater accuracy over time.
Digital platforms such as IPS Productivity Wrx℠ use artificial intelligence in accounts payable, along with machine learning and other advanced technologies to automate expensive labor-intensive tasks, including:
- Assigning general ledger codes
- Calculating amounts
- Validating information on invoices
- Routing invoices for approval
- Determining whether a document requires exceptions handling
- Posting approved invoices directly into an ERP system
- Reviewing approved invoices for errors and duplicate payments
- Storing, indexing and retrieving invoices and data
Additionally, digital platforms that incorporate AI and ML automatically match invoices to purchase orders and/or proof-of-delivery documents, detect any gaps and their possible cause, alert the appropriate operator of any gaps, and suggest to the operator the individual who should be notified based on past correction histories.
And digital platforms can identify duplicate invoices or flag suspicious transactions that can lead to financial losses. When performed by a human, this kind of analysis typically is based on experience and intuition. AI, ML and other digital technologies can be used to build a statistical model based on historical data to identify patterns that may be missed by a human.
Digital platforms utilizing artificial intelligence in accounts payable perform many of these tasks within seconds, freeing staff to focus on value-added activities.
Based on Institute of Finance and Management (IOFM) and Association for Intelligent Information Management (AIIM) benchmarks for invoice processing costs, a business that processes 5,000 invoices per month will save $55,650 per month ($64,500 versus $8,850) and $667,800 annually with digital platforms that incorporate AI, ML and other advanced technologies.
Are you ready to reduce your costs to process and post invoices while improving accounts payable visibility?
Learn more about AI benefits and ML solutions for accounts payable, email us at firstname.lastname@example.org to find out more!