Is your invoice capture truly AI-driven?
Template-based invoice capture vs. AI-driven invoice capture
In the accounts payable (AP) automation world, you can't miss the hype around artificial intelligence (AI). Many companies claim to have automated systems using AI to make invoice processing smoother – particularly in the invoice capture part of the process.
- But how often are these claims truly reflective of reality?
- Are you really benefiting from AI, or is it merely a digitized facade?
With all the talk of automation and AI, it's easy to confuse and mistake one for the other. Many think they've automated their AP processes with basic systems, only to realize these systems offer limited automation capabilities. Looking more closely, it becomes clear many solutions fall short of the full efficiency of true AI-driven solutions.
So what's the issue?
Many companies are relying on template-based invoice capture solutions, which, in reality, only provide a superficial level of automation. These solutions use templates to identify invoice data gaps but struggle to interpret the data effectively. While they can spot data anomalies and gaps, they often lack the ability to understand what's wrong with the data and how to fix it. As a result, AP teams have to step in and manually retrain or fix the templates. This is far from the true AI-driven invoice capture you need for efficient and effective accounts payable processes.
Let's examine the core differences between the two so you can distinguish one from the other.
Template-based invoice capture vs. AI-driven invoice capture
Template-driven invoice capture
Static recognition
Template-based products use set templates to pinpoint invoice data irregularities. Yet, this method isn't very flexible and has trouble with different document layouts, needing lots of manual tweaks and retraining.
Limited automation
Template-based systems just identify and remember data, but they lack the intelligence to actively interpret and extract information, leading to manual intervention.
Digitization ≠ automation
Merely receiving digitized invoices, often in PDF format, does not equate to automation. People still have to deal with invoices manually, which undercuts the efficiency improvements automation is supposed to bring.
AI-driven invoice capture
- Dynamic learning
AI-driven solutions use advanced machine learning algorithms to adapt and learn from data patterns over time. This dynamic learning capability enables the system to continually improve accuracy and efficiency without requiring manual intervention or retraining.
- Intelligent extraction
Unlike template-driven approaches, AI-driven systems actively seek and interpret information within invoices, regardless of invoice type and variations. AI can extract relevant information accurately and efficiently by understanding the context and semantics of invoice data.
- Real automation
AI-powered invoice capture brings true automation by eliminating manual steps in the processing chain. Documents are handled autonomously, slashing processing times and errors. This boosts efficiency and creates a smoother, more secure AP process, a significant advantage over template-based solutions.
- High validation
AI-driven invoice capture has the highest automation levels, allowing organizations to bypass manual validation and proceed straight through to workflow once a minimum data capture confidence level has been met.
Key differences and benefits
Adaptability
Adaptability is a key strength of AI-driven solutions. Unlike template-driven solutions, which require constant manual adjustments, AI-driven invoice capture handles diverse formats seamlessly. It can adapt to changes without manual tweaks, providing a reassuring level of ease and relief.
Efficiency
AI-driven invoice capture significantly enhances efficiency by automating the entire processing chain, from data extraction to validation and approval. This results in faster processing times, reduced operational costs, and improved accuracy.
Innovation at its core
AI-driven solutions, such as Medius SmartFlow technology, introduce innovative features like automatic suggestions for invoicing paths and fraud detection. These unique capabilities further streamline processes and enhance security, setting them apart from traditional template-driven approaches and making them a compelling choice for your AP automation needs.
Now that you know the difference, you can choose smarter.
The path to real automation starts with recognizing the different levels of automation maturity. Some companies might be happy with small wins, like moving from manual work to touchless processing. But, these wins usually only partially tap into the power of advanced AI solutions.
Knowing the difference between the capabilities –specifically invoice capture—will help your AP automation journey.
When assessing invoice capture solutions, look at these key features:
Versatile handling of all invoice formats - paper, PDF, e-invoices/EDI - for streamlined input and comprehensive insights.
Seamless integration with your workflow solution for in-depth reporting, analytics, and high automation rates, minimizing manual efforts.
Easy adoption with minimal change management and user training requirements.
Transparent AP processes with audit trails to ensure compliance with regulations and policies.
True AI and machine learning capabilities for optimal automation allow staff to focus on critical business tasks.
Medius Capture does it all.
The good news? Medius Capture proactively addresses automation gaps you likely see in other solutions, specifically template-based solutions, so you can be confident when you say "we are fully automated."
Medius specializes in AI-driven invoice capture that detects irregularities and fraud risks to facilitate Straight-Through Processing (STP). A standout feature of Medius is its SmartFlow technology, which is particularly advantageous for non-PO invoices. This AI-powered engine scrutinizes historical invoices, recommends optimal invoicing processes, and autonomously routes documents to respective departments.
Learn more about Medius Capture and how you can harness the real power of AI in invoice capture.
