In a recent webinar panel hosted by Mark Fisher, SVP of Marketing at Vic.ai, guests Alexandra Cancio, Director, Data and Digital Services at RSM, and Andrew Turkish, VP and Corporate Controller at Diesel Direct, explored how finance teams are modernizing their accounts payable (AP) processes. 

Modernizing AP: The AI-Driven Revolution in Finance Operations shed light on the mounting challenges faced by AP departments across industries. As organizations grapple with manual workflows, increasing invoice volumes, and economic uncertainties, the need for innovative solutions has become more pressing than ever. 

The panel explained how artificial intelligence (AI) is emerging as a powerful tool to address these challenges, offering new avenues for improved efficiency and strategic growth in the evolving financial landscape. And, Turkish shared how his team is already applying AI today to drive operational excellence in AP.

The state of AP today: Mounting complexities and inefficiencies

Accounts payable has long been considered a function ripe for transformation, but many finance teams are still operating with dated processes that slow progress and increase risk. Paper invoices, email-based approvals, and Excel-driven tracking systems are still the norm in countless organizations, despite growing transaction volumes and global operational complexity. These inefficiencies are not just frustrating — they create real financial and operational liabilities.

AP departments face a myriad of obstacles that hinder productivity and accuracy. Cancio highlighted some key issues:

"The one thing that stands out to me the most of everything is manual, manual, manual, and right after it is slightly more Excel," Cancio observed. This reliance on manual processes and spreadsheets creates bottlenecks, visibility issues, and delays in vendor payments.

Turkish echoes these concerns: "We had a material backlog of invoices that had not been entered into our ERP and it continued to snowball." This backlog led to complications in financial reporting and balance sheet governance.

He added, "Our AP workforce was consistently frustrated and disengaged, driven by the manual processes and inability to catch up on the workload. Everything was a fire drill, impacting employee engagement and retention."

This theme of burnout and inefficiency is something RSM sees regularly. "A lot of clients are struggling with turnover and retention because the work doesn’t feel meaningful when you're stuck in repetitive tasks," Cancio said. "It's not challenging, and people want to feel like they’re making an impact."

The shift to AI: A new paradigm for AP

Technology has promised AP transformation for years, but the reality hasn’t always lived up to the hype. Traditional automation tools like OCR and template-based software often fall short of expectations. Turkish explained that Diesel Direct had initially implemented such a solution, but it failed to deliver.

"Every time an invoice slightly changed in presentation, the template broke," he said. "It was beyond frustrating."

As organizations recognize the limitations of traditional approaches, many are turning to AI-powered solutions to transform their AP processes. The appeal of AI lies in its ability to learn, adapt, and execute complex tasks with a level of accuracy and speed that enhances human capabilities.

"It became clear to me after a few conversations with the Vic.ai team that AI was our future as opposed to template-based software or manual process improvements," Turkish shared. "I really appreciated the idea of the machine learning aspect, where every 2 to 3 weeks, the refresh of historical changes was learned by the AI."

Cancio added, "Especially for high-growth companies or those scaling through acquisition, AI helps reduce the need for touching every single invoice. That’s where clients say: ‘There’s got to be a better way.’”

Mark Fisher summarized it well: “AI is about autonomy with outcomes. We’re not just talking faster processes — we’re talking fewer surprises, better visibility, and the ability to focus on strategic priorities.”

The impact of intelligent automation

When AI is applied effectively, the impact extends beyond invoice processing. It allows finance teams to operate proactively, with enhanced visibility into cash flow, liabilities, and process performance.

The implementation of AI in AP processes can yield significant benefits:

1. Increased accuracy and efficiency: Turkish reports, "We saw our backlog stop growing finally, and we were able to then use the bandwidth that Vic.ai freed up for the AP team to clear it once and for all."

2. Improved financial visibility: "Vic developed a report that helps our controllers accrue for unapproved invoices at month-end. We now close AP on workday 3, which is a significant improvement from where we were prior," Turkish explained. That accelerated timeline allows for more accurate reporting and better business planning.

3. Enhanced employee satisfaction: "We recognized nearly 50% staff efficiencies as a result of the automation, leading to our employees spending time on other value-added activities."

4. Better vendor relationships: Faster, more accurate invoice processing can lead to timely vendor payments and stronger supplier partnerships. Turkish added, "Now approvers can see the invoice and the email context from their phone—getting that kind of operational buy-in was a huge win."

5. Strategic payments: “Vic is paying our general payables upon due date once approvals are made,” Turkish said. “It’s sped up our process, aligned better with our cash strategy, and gave us more control.”

Getting started with AI in AP

Adopting AI for AP can feel overwhelming, but the panelists emphasized that the journey is manageable — and worthwhile — when approached with the right mindset.

For organizations considering AI implementation in their AP processes, here are some key considerations:

1. Assess your current process: Cancio advises, "Think about your process. Where are you with the process? What are you trying to fix? Where is your process broken?"

2. Set clear objectives: Turkish suggests, "Assess the pain points. How many hours are being spent on the manual process or fixing them? What sort of growth rate do you forecast that's just going to compound that?"

3. Evaluate integration capabilities: Ensure the AI solution can integrate seamlessly with your existing ERP and accounting systems. Turkish noted, “We use Great Plains, but we’ve built custom tools around it — Vic.ai integrated smoothly with our setup.”

4. Consider scalability: "As organizations become more complex, with multiple ERPs or entities, you need a system that can consolidate and provide visibility across all of it," said Cancio.

5. Prioritize change management: “I met with every single member of the AP team one-on-one and assured them their roles would evolve, but that they'd still find value and satisfaction in the work,” Turkish shared. “That made a huge difference in easing concerns.”

Selecting the right AI vendor

Choosing the right technology partner is just as important as the technology itself. It’s about finding a vendor that understands your goals and has the capabilities to scale with your needs.

1. AI capabilities: "Ask the right questions," Cancio urged. "What do you use AI for and how is it being used? Because you may not get the same functionality across all vendors."

2. Proven track record: Turkish said, "I reached out to references and asked what they would’ve done differently. Every implementation has bumps — knowing them in advance helped us prepare."

3. Ongoing support and training: Ensure the vendor offers comprehensive support and training to help your team maximize the benefits of the AI system.

4. Data security and compliance: Verify that the vendor adheres to strict data security standards and complies with relevant regulations.

5. Customization options: Turkish emphasized the importance of partnership: “I’m a big journey guy. I didn’t want to just buy ingestion — I wanted a partner that could support BOL matching, payments, and whatever comes next.”

AI-driven modernization of AP processes represents a significant opportunity for finance teams to overcome longstanding challenges and drive strategic value for their organizations. By carefully considering their needs, selecting the right vendor, and managing the implementation process thoughtfully, companies can position themselves for success in an increasingly complex financial landscape.‍