How to prepare for the evolution of AI-powered invoice processing
Artificial intelligence (AI) in all fields, including accounts payable, is all the buzz. The advent and evolution of this technology bring a mix of excitement and concern. We're all intrigued by working alongside intelligent machines to boost efficiency and accuracy. But at the same time, many worry about how AI might affect our jobs and the future of our industry.
The truth is AI is reshaping the finance landscape and getting more advanced by the day. AI is not going away, so it is important to see it as an ally, not a threat. By investing in employee training and leveraging AI tools, AP teams can stay ahead of the curve and ease their worries.
In this blog, we’ll look at:
What is AI invoice processing?
AI invoice processing has changed the overall management and invoice workflow in accounts payable – from how invoices are received and read to how they are routed, approved and reconciled. It automates manual, tedious tasks using AI technologies like machine learning, optical character recognition and natural language processing. It recognizes and processes data from different invoice formats, fills in and verifies entries automatically, and cuts down on human work. Plus, as AI learns from manual tweaks and fixes, it keeps improving and can handle all sorts of invoice structures with great accuracy. The bottom line is that it makes invoice processing easier and more efficient.
Key components of AI invoice processing include:
Data extraction
Advanced AI invoice capture to extract information automatically, including invoice numbers, dates, vendor details, line items and amounts.
Document classification
AI systems categorize invoices for routing to the right departments/individuals for approval and processing.
Validation and verification
Extracted data is validated against rules and cross-checked for accuracy. Discrepancies or anomalies can be flagged for human review, improving invoicing accuracy and detecting fraud.
Automated workflows
AI enables automated invoice approval and processing workflows by routing through approval hierarchies, reducing manual intervention and speeding up payments.
Integration with ERP systems
AI-powered invoice processing systems easily integrate with existing ERP systems, ensuring a seamless financial workflow and real-time data updates and synchronization.
Machine learning for improvement
Over time, AI systems learn from historical data and user interactions, improving data extraction and validation accuracy.
Reduced manual intervention
AI invoice processing automates repetitive tasks, reducing manual data entry and errors.
Cost and time savings
Automating invoice processing with AI saves time and costs, allowing organizations to allocate resources more efficiently freeing up employees for strategic and value-added tasks.
Trends to watch
AI invoice processing automation
Invoice process automation is already prevalent in many organizations and is becoming widely adopted. Accounts payable (AP) departments are reaping the benefits of automation, but also know they are just scratching the surface of the power of AI in invoice processing. Many teams are concerned with the future capabilities of AI and don’t quite understand how it will work. The good news is that they probably already benefit from AI functionality, but knowing what else they can prepare for is also important.
Here are a few future trends that AP teams can keep an eye out for:
- Advanced machine learning
Future AI systems will advance the recognition of diverse invoice formats, extract information accurately, and adapt to variations over time.
- More security features
Robust security measures, including encryption, secure APIs, and compliance with data protection regulations, will be prioritized to safeguard the confidentiality and integrity of invoice data.
- Blockchain technology integration
Blockchain technology will likely play a role in enhancing the transparency and security of invoice processing. Smart contracts and distributed ledgers can streamline the invoicing lifecycle, reducing fraud and ensuring a single version of the truth.
- Enhanced predictive analytics
AI will be increasingly used for predictive analytics, helping organizations accurately forecast cash flows.
- More interaction and communication
NLP capabilities will enhance communication between AI systems and users, including the ability to understand and respond to natural language queries, making it easier for employees to interact with AI-powered invoice processing tools.
- Continuous learning and improvement
Future AI systems will feature continuous learning capabilities, allowing them to adapt to changes in invoice formats, regulations and business processes to remain relevant over time.
- Integration with Intelligent Process Automation (IPA)
Integrating AI with Intelligent Process Automation (IPA) will become more prevalent. IPA combines AI, RPA, and other automation technologies to create end-to-end automated processes, optimizing efficiency across the entire AP workflow.
- More mobile accessibility
AI invoice processing solutions will be designed with mobile accessibility in mind. This enables users to review, approve, or manage invoices on the go, promoting flexibility and faster decision-making.
- Sustainability-driven initiatives
AI invoice processing can contribute to sustainability goals by reducing paper usage, automating processes, and optimizing resource utilization. Future trends may focus more on environmentally conscious practices in AP departments.
How to prepare your team
Why AI is an ally, not a threat
As AI is transforming nearly every aspect of our personal and professional lives, people are becoming more open to the idea of it and better educating themselves on its benefits. In the accounts payable world, AI-driven invoice processing solutions can help employees be more efficient and productive, eliminating repetitive, boring, manual tasks and giving them more time to focus on strategy.
One of the keys to successfully integrating AI into invoice processing is providing comprehensive training for your team. Let's delve into the significance of employee training and ways to overcome the common misconception that AI takes jobs instead of improving them.
Foster AI exploration and education
- Research, read and read some more. Offer relevant articles and use cases for AI to your employees.
- Provide introductory training on AI and machine learning basics and how they apply to invoice processing.
- Offer resources and workshops to familiarize employees with the terminology and concepts behind AI technology.
- Foster a culture of continuous learning, where employees are encouraged to explore and adapt to new technologies continuously.
Provide hands-on training and upskill opportunities
- Conduct early and frequent hands-on training sessions with the AI-powered tools your organization is implementing for invoice processing.
- Guide employees through the functionalities of these tools, ensuring they are comfortable using them in their daily tasks.
- Allow employees to take additional training and skill courses to upskill their knowledge and use AI.
Show the value of collaboration
- Emphasize the collaborative nature of AI and human work. Illustrate how AI can handle repetitive, time-consuming tasks, allowing employees to focus on tasks that require human intelligence.
- Advise your team to focus on developing and retaining skills that the AI can never replace, such as ethics, communication and relationship management.
Leverage AI for insights and improvement
- Train employees to interpret insights generated by AI tools. This includes understanding anomaly detection and data trends and leveraging these insights for strategic decision-making.
- Regularly assess workflows to identify areas where AI tools can be further optimized or integrated to improve efficiency.
Lean on AI vendors for support and learning
- Collaborate with accounts payable automation solution vendors for ongoing education and ways to leverage AI functionality.
- Seek additional support or help to implement and benefit from AI solutions.
AI is here to stay. Make it your friend, not your foe, and start reaping the rewards of AI-powered invoice processing – see how Medius autonomous AP replaces the worry and wondering of managing AP with calm and confidence.
