Discover how AI-powered finance solutions transform accounts payable processes, reduce costs, and drive efficiency for businesses across industries.
August 23, 2024
According to Statista, technology spending is increasing across all industries, with companies allocating anywhere from 5 to 19 percent of their total revenue to hardware, software, and technology-related services. For CFOs, approving new technology contracts requires a compelling business need and a clear path to ROI. Fortunately, finance and accounting departments are ripe for AI-powered automation, particularly in areas plagued by redundant tasks, manual data entry, and time-consuming document processing.
Accounts payable (AP) teams face numerous challenges that can intensify over time, creating a catalyst for change. In this article, we'll explore six real-world examples of how AI-based processes solve critical problems for finance teams, showcasing the transformative power of AI in finance.
1. Streamlining template-based processes
A major transportation company with over 500 employees and an annual invoice volume exceeding 400,000 struggled with template-driven AP automation. Their existing optical character recognition (OCR) and robotic process automation (RPA) systems couldn't adapt to various invoice layouts, leading to frequent breakdowns and manual interventions.
By implementing an AI tool capable of reading and extracting data from any document format, the company reduced invoice processing time from 2.3 minutes to 36 seconds, saving an estimated 11,333 hours annually.
2. Simplifying complex approval flows
An education company managing 100 school campuses across the U.S. and Asia faced challenges with manual handoffs and disparate systems. Their complex approval process, involving multiple locations and individuals, resulted in time-consuming data entry and communication.
By adopting an intelligent, hyper-automation accounting platform, the company now processes invoices 60 percent faster across multiple locations with complex approvals, improving employee morale and productivity.
3. Modernizing operations for a competitive edge
A large international hotel group operating over 300 properties in Europe's Nordic and Baltic regions needed to modernize its inefficient and costly manual invoice processing. Seasonal fluctuations further complicated operations, leading to unclear revenue forecasting and expense management.
By implementing AI-powered invoice coding, comparison, and approvals, the company achieved 96 percent accuracy in invoice processing and gained real-time visibility for cash flow forecasting.
4. Optimizing multi-level approval workflows
A property and assisted living management company overseeing 8,800 residential units faced significant delays due to complex, multi-level approval flows. On average, it took 10 to 15 minutes to process an invoice, each requiring a three-layer approval process via email.
By leveraging AI in their accounting processes, the company reduced time spent on invoice processing and approvals by 90 percent, significantly improving overall efficiency.
5. Capitalizing on early payment discounts
A technology company specializing in cybersecurity and enterprise solutions missed out on early payment discount opportunities due to slow invoice processes. With over 24,000 annual invoices, PO processing took more than 48 hours, causing significant crunch time at month- and quarter-end close.
By adopting an AI-powered platform with autonomous PO matching capabilities, the company now processes invoices faster and detects early payment discount opportunities in real-time, optimizing cash flow.
6. Building a best-in-class AP department from the ground up
A start-up in the aeronautical industry focused on developing electric regional jets recognized the need for an efficient back-office operation to support rapid scaling. The company is working towards establishing a best-in-class AP department by implementing an AI-first foundation for its finance processes.
This new approach to AP enables the team with swift vendor payments to avoid production delays and real-time analytics to continuously improve AP operations and vendor relations.
Launch your AI era
For accounting and finance professionals, embracing AI means more time to focus on higher-value activities like strategic planning, growth initiatives, and advisory services. Organizations that adopt AI strategically can achieve significant cost savings, improve financial decision-making, gain a competitive advantage, and keep pace with industry trends.
Are you ready to solve your most pressing AP challenges and join the AI finance revolution? Download our comprehensive ebook, "6 Problems Finance Teams Can Solve with AI-based Accounts Payable," to explore how AI-based accounts payable processes can dramatically lower costs, reduce error rates, and launch lasting financial transformation for your organization.