AI is a good thing for you and your AP
You are NOT Sarah Connor
Here's the average person's first taste of artificial intelligence (AI):
A cyborg assassin known as a Terminator travels from the future to kill Sarah Connor. But, Kyle Reese has also been sent—to protect her. He divulges the coming of Skynet, an artificial intelligence system that will spark a nuclear holocaust. With the virtually unstoppable Terminator in hot pursuit, Sarah and Kyle go on the run. The movie, aptly called The Terminator, came out in 1984 with Arnold Schwarzenegger in the titular role and gave humans a not-so-healthy fear of AI. After all, there is nothing at all subtle about the film's underlying message, which is that AI will take over the world if we let it.
Fast forward nearly 40 years later to November 2022, when OpenAI launched ChatGPT, and the hysteria was in full force. Arnold was coming for you and your job! The end was near! Except AI wasn't really new. And in fact, it had been driving technology-based automation and efficiencies for much longer than you might have realized…
…If you use an iPhone, tablet, or laptop with facial recognition software, you're already encountering AI every day. The tech scans and maps your face and then compares it with a previous image to make a match to unlock your device.
…Text editors like Grammarly or even grammar recommendations through a program like Microsoft Word are another example. The software uses an algorithm to scan documents for incorrect grammar usage and then makes suggestions.
…Finally, if you use social media, you’re probably also experiencing AI. That’s how apps like TikTok or Instagram personalize your feed, analyzing your past interactions with their app and using that to inform and curate your new content.
AP could use some AI help
Gartner defines AI as applying "advanced analysis and logic-based techniques, including machine learning (ML), to interpret events, support and automate decisions, and take actions." In other words, AI can learn from data and results in near real time—analyzing new information from many sources and adapting or acting accordingly—and with a high degree of accuracy. That's where the excitement comes in. And, it’s why software leaders are adding it to their offerings and business leaders are looking for ways to incorporate it into their operations and tech stacks. However, AI is unable to think as ethically, critically, and deeply as humans—and it cannot be used as a substitute for human experience and intuitive thought. So, that’s where all the hysteria comes in.
ML is the most common type of AI, and it mimics how humans learn with data and algorithms. It gets more accurate over time in both its predictions and understanding. Software uses it to learn and adapt without the need for explicit instructions—and instead uses algorithms and statistical models to analyze and “understand” patterns in data. Most importantly, machine learning is viewed as a game changer for task-oriented functional areas. Areas like AP, where AI could certainly be of some help for:
- Manual data entry. According to Levvel Research, 86% of SMBs still rely mostly or entirely on manual AP data entry. And, that manual work results in a lot of lost time for finance employees. In fact, a survey conducted on OnePoll found that the typical AP staffer loses around 60 hours a month—or three hours per day—on data entry.
- Late payments. A study by PYMNTS found that 93% of companies experience late payments. That makes them the norm. But they certainly shouldn’t be, as they are devastating for your reputation and supplier relationships.
- Payment fraud. A study by the Association of Certified Fraud Examiners found that SMBs typically lose 5% of their total revenue every year to fraudulent activity. The same study found that the average loss per case is a whopping $125,000.
AI-powered AP = Automated AP
As we said, AI interprets events, supports decisions, and takes actions. So that means you often experience B2B AI functionality as automation. Plain and simple. Without any fanfare or some fancy AI-driven name. It is often just the tech doing its thing. And at Quadient AP, you've got:
- Invoice automation, where AI-powered tools extract data from invoices to minimize data entry and accelerate overall processing.
- Payment automation, where AI initiates payments based on invoice data and rules, reducing the need for employee intervention in payables.
- Matching automation, where AI pairs invoices with purchase orders and receipts, reducing the risk of human error in these critical tasks.
Specifically, Quadient's SmartCapture capabilities utilize a mix of optical character recognition (OCR) technology and line-item capture to reduce the time spent on manual keying to nearly eliminate any associated errors. When invoices are received, AI recognizes, extracts, and consolidates invoice text, characters, fields, and data, picking up information with near-100% accuracy for:
- 9x faster processing
- 99% touchless invoicing
- An 83% reduction in manual data entry
Plus, Quadient's AI-powered features help AP teams combat fraud on multiple levels, analyzing large volumes of data and recognizing suspicious patterns and anomalies to:
- Detect irregularities that could indicate fraud
- Flag questionable transactions and extra charges
- Identify duplicate invoices
- Initiate an item for manual review
- Block a payment or change of vendor details
AI to the rescue
These efficiencies and benefits are nothing to be afraid of. On the contrary, they can literally transform both your accounts payable approach and outcomes. In other words, AI is not poised to run rough shod over you or eliminate your job. In fact, it’s key to improving your ecosystem satisfaction by reducing errors that damage vendor relationships and eliminating mundane tasks to free your team for more meaningful work.
While AI can automate many aspects of AP, it cannot replace the value of human communication and cooperation. But with your extra time, you can ensure that you’re getting the best possible terms and pricing and supporting the overall vendor experience. Oh, and by the way, with AI-powered payments ensuring timely payables, your suppliers are going to be much more open to talking to you!
Get on the AI bandwagon
Book a demo today to see firsthand how Quadient’s AI-driven AP automation fuels invoice processing and accuracy while decreasing the possibility of fraud.
