Artificial Intelligence (AI) is no longer just a buzzword –…
Are you a tad bit tired of reading about AI technologies? If so, you're not alone! With so many new AI technologies flooding the market, it’s easy to feel overwhelmed by the constant noise. Yet, amid the hype, there are real innovations in finance and procurement that have the potential to completely transform Accounts Payable (AP) processes and revolutionize change management processes.
As industry leaders, it's crucial to sift through the noise and identify where AI-driven solutions can actively make a difference. Our responsibility lies in creatively applying these advancements to drive real value for our businesses.
Recently, our founder and procurement expert, Amanda Prochaska, has been exploring the critical ways AI is revolutionizing Accounts Payable (AP) workflows. In collaboration with our fantastic partner Medius, Amanda has identified 3 key areas where AI-driven AP automation has already created a significant impact:
#1: E-Invoicing with AI
The procurement industry has been discussing e-invoicing for over 20 years. However, on a global scale, only 30% of B2B invoices are electronic.
With the rise of AI-enabled e-invoicing solutions, this is changing. But to understand how AI is transforming e-invoicing, it's essential to explore why change hasn’t worked in the past.
One major hurdle has been the concept of a portal. Although a portal offers various submission methods for suppliers, suppliers and users are still required to access the portal itself to submit invoices. This introduces significant challenges for supplier enablement and adoption, as well as internal changes within organizations.
For instance, if you're a supplier for multiple large organizations, and each one uses a different e-invoicing portal, the process can quickly become cumbersome. First, you create an invoice in your own system, where your financials are managed. Then, you log into each client's portal, correctly enter your credentials, and upload the invoice. These additional steps can make e-invoicing a tedious, repetitive task.
However, with AI and machine learning, the process is evolving. Soon, the method by which you receive an invoice—whether by email, PDF, or other format—won't matter. What matters is that the invoice is converted into an electronic format without human intervention.
Some companies have already implemented great technologies that can extract specific information from invoices. However, these systems generally require manual training to recognize each new invoice format. What makes AI different is its ability to learn and adapt on its own. It removes the need for continuous retraining, regardless of the variation in invoice formats.
Our partner, Medius, recently demonstrated their AI-informed tool that can identify essential information on an invoice, regardless of its layout. This shift fundamentally changes the approach to supplier enablement. Suppliers will be able to submit invoices in whatever format is natural to them without the need for extra steps or portal logins.
AI-driven tools will drastically reduce the friction in the e-invoicing process, making it more efficient for both suppliers and buyers. As a result, it will also become a game changer in supplier enablement moving forward!
#2: AI-Powered GL Assignment on Non-PO Invoices
Unlike PO invoices, where GL codes are often consistent, non-PO invoices can vary greatly depending on the supplier. In addition, there is a chance that the accounting string may change. However, AI-driven AP automation is becoming smart enough to read these invoices and suggest the GL or accounting string based on what has been used in the past. This significantly narrows down the options and reduces the manual effort.
Another significant challenge with non-PO invoices has always been determining who should receive the invoice when there’s no internal name listed. In such cases, it can be difficult to know where to route it. Once routed, the recipient often has to add the correct GL or accounting information. But now, AI is learning these accounting patterns and can provide suggestions based on previous behavior, reducing this back-and-forth.
While AI might not always be 100% accurate, it offers a starting point which is incredibly valuable. This can streamline the entire process and significantly reduce the steps involved. This is fantastic, especially for Accounts Payable (AP) teams, who will benefit from having this information readily available at their fingertips.
#3: AI-Solutions for Troubleshooting and Answering Inquiries in AP
Accounts Payable (AP) teams receive hundreds of inquiries daily! Messages are constantly flowing in from both internal staff and suppliers asking about invoices or payment statuses. There are simply too many for one, or even several, people to handle.
While chatbot solutions have been around for some time, their effectiveness has been inconsistent. Fortunately, the latest AI developments, like those from Medius, apply this technology to emails, offering a more sophisticated solution.
With Medius’ generative AI functionality, emails can now be responded to automatically without human intervention. This kind of automated response system not only saves time but also helps ensure proper protocols are followed.
The AI email response system also eliminates much of the manual back-and-forth that is required when employees are required to provide manual responses. Additionally, AI can automatically route inquiries to the appropriate person or department, provide accurate responses, and escalate more complex issues when needed.
As always, monitoring AI-driven responses to ensure accuracy remains crucial. Nevertheless, this technology has the potential to drastically streamline email management in AP departments, enabling faster and more precise resolutions!
In Conclusion…
AI is actively transforming the procurement industry, proving that these innovations are not just theoretical but possess real-world application. Therefore, as AP and procurement professionals, it's crucial to explore how AI-powered AP automation can be integrated into your operations to streamline processes, enhance efficiency, and shift focus to strategic initiatives.
Our Wonder Services team, along with our partner, Medius, are all dedicated to supporting your AP team through these essential transformations. Contact us today to discover how AI-powered AP automation and procurement solutions can transform your processes. Let us support your AP team in adopting AI-driven technologies for increased efficiency and reduced manual work. We look forward to chatting with you soon!