While recessions affect every organization differently, they commonly result in efficiency-related cost-cutting measures, increased workloads for already stretched workforces, and spotlights on unnecessary expenses occurring within companies. These challenges often increase the pressure on accounting and finance teams to stabilize their organization's bottom line.
The good news is that this challenging situation presents a unique opportunity for innovation. In fact, 92% of CFO’s often plan to boost their tech investments in the face of impending economic challenges.
“Now more than ever, finance leaders will need to modernize with technology to remove manual processes” - Finance Monthly.
In search of this modernization, organizations are turning to automation solutions that use artificial intelligence (AI) and machine learning (ML) to maximize efficiency, reduce costs, and help create long-term financial stability.
In this blog, we’ll explore what AI can and can’t do, and how the machine learning technology built into Quadient AP can help your organization not only survive but thrive during an economic downturn.
What are AI and ML?
Artificial intelligence (AI) uses computers and machines to imitate how humans think and work. It helps solve problems and make choices, just like minds do. However, it is unable to think as ethically, critically, and deeply as humans, and it cannot be used as a substitute for human experience and intuitive decision making.
Machine learning (ML) is an example of artificial intelligence (AI) that tries to copy how humans learn with data and algorithms. It gets more accurate over time, in both its predictions and understanding.
To be clear: neither of these technologies are in a position to replace people directly in the workforce. But when AP teams use software solutions with these technologies built in, like Quadient AP, team members can automate some of the more tedious and manual processes in their workflows and spend more time handling strategic and complex financial responsibilities.
Put technology to work for you
When it comes to AI and ML, Quadient AP offer two main advantages:
- Invoice automation.
- Fraud mitigation.
Invoice automation
Incredibly, 86% of businesses still rely on manual invoice data entry. Not only is it inefficient but it’s prone to errors. As AP teams spend hours and days identifying and correcting mistakes, payment deadlines can be missed leading to damaged supply chain relationships, late fees and penalties, and missed opportunities for vendor discounts.
Quadient AP’s automation software uses AI technology to accelerate and streamline invoicing. Quadient’s SmartCapture solution uses OCR (Optical Character Recognition) and Line Item Capture to automatically recognize, extract, and consolidate invoice text, characters, fields and data, processing invoices with 99% accuracy and reducing manual data entry time by over 80%.
With less time spent on manual labor, AP teams can focus on activities that can help generate money for their organization, such as taking advantage of early payment vendor discounts and strategically managing cash flow.
Want more proof? Read about how Radisson Blu hotels hotels implemented Quadient AP to work for them.
“Before Quadient Accounts Payable Automation by Beanworks, our AP clerk was spending 30-40% of their time doing data entry and keying in invoices. The whole process was time consuming and Quadient AP has eliminated a lot of that. We’re saving at least 50% of our time in accounts payable.”
-- Dean Olevson, Director of Finance, Radisson Blu Minneapolis Downtown
Fraud mitigation
Fraud is a catastrophic but all too commonplace issue for organizations. In fact, the average company loses 5% of its revenue to fraud each year, with the median loss per case being $125,000.
The three primary reasons that people or organizations commit fraud are:
- Opportunity, such as gaps in the control system
- Motivation, caused by issues like financial hardship
- Rationalization, due to issues like economic uncertainty
Many companies are under the impression that manual processes provide strong internal controls against fraud, but in fact, the opposite could not be more true. Here are a few alarming facts:
- 72% of businesses that made payments via paper checks experienced some kind of fraud.
- 34% of companies admit their corporate and commercial credit cards have been the target of fraud.
These facts make Quadient AP’s AI technology a key factor for organizations to combat fraud. Quadient AP provides strengthened approval and increased visibility into AP workflows, lessening opportunities for fraud to occur. One example of this is 3-way matching. 3-way matching ensures that the prices and quantities on an original purchase order, invoice, and receipt are all identical. If a team relies solely on manual processes, 3-way matching can be time-consuming and nearly impossible to manage. But with AP automation, 3-way matching can become an AP team’s workflow standard.
Are you ready to automate?
Whether you’re facing an economic downturn or just looking for ways to empower your AP team to be more strategically-minded, Quadient’s AP automation solution with built-in AI and ML functionality can help you innovate and adapt to the changing needs of a fast-paced global economy. The industry agrees; based on a global survey of more than 3,000 executives, managers, and analysts performed by MIT Sloan Management Review, “almost 85% believe AI will allow their companies to obtain or sustain a competitive advantage.”
If you’re ready to adopt Quadient AP as your automation solution and empower your accounting teams with this competitive advantage, we’re here to help. Book a demo today to see how we can help you!
