Power of AI in Accounts Payable

Artificial Intelligence (AI) is no longer just a buzzword – it's transforming how businesses operate, particularly in the realm of Accounts Payable (AP). We recently had the opportunity to sit down with one of our partners, Medius, to explore how AI is revolutionizing the AP landscape. What we learned was nothing short of magical, and I'm excited to share these insights with you.

Here are three key AI-driven innovations that could significantly impact your AP processes, streamlining operations, and enhancing efficiency.

1. AI-Driven Invoice Processing: The End of Manual Data Entry

For decades, we've been talking about e-invoicing, yet globally, only about 30% of B2B invoices are electronic. The persistent reliance on manual processes can be frustrating, particularly when it involves multiple steps like logging into portals, uploading invoices, and more.

AI is set to change this. With advanced machine learning, AI can now process invoices sent in any format be it email, PDF, or a simple document. The AI system recognizes key data points like purchase order numbers, totals, and more, regardless of where they appear on the invoice. It then automatically inputs this data into your system without the need for manual intervention. This means suppliers can continue using their preferred methods to send invoices, while your AP team benefits from streamlined, error-free processing.

2. Automated GL Assignment for Non-PO Invoices

One of the most time-consuming aspects of AP is dealing with non-PO invoices. These often require manual input to determine the correct General Ledger (GL) account or accounting string. With AI, this process becomes much more efficient.

AI can now analyze past invoice data to suggest the most appropriate GL code for new invoices. While it may not be perfect every time, it significantly narrows down the options, reducing the time spent on this task. This innovation is particularly beneficial for AP teams, enabling them to focus on more strategic tasks rather than getting bogged down in manual data entry.

3. AI-Powered Email Response Automation

Handling the influx of emails in AP departments is a daily challenge, whether they're from internal stakeholders or suppliers inquiring about payments. Traditional chatbots have attempted to alleviate some of this burden, but what we see with Medius’ AI is a step beyond.

Their AI can automatically generate responses to emails based on the content, without any human intervention. For example, if a supplier emails asking to change a bank account – a potential fraud red flag – the AI can respond with the appropriate protocol for making such changes, ensuring security while reducing the workload on your team. This AI-driven email response system can be a game-changer, drastically reducing the time and effort required to manage AP inquiries.

These are just a few of the exciting ways AI is being applied in Accounts Payable, and they represent only the beginning of what's possible. By integrating these innovations into your AP processes, you can significantly streamline operations, reduce errors, and free up your team to focus on higher-value activities.