Although artificial intelligence may seem daunting to some, it has become an important asset in invoice processing. Let's take a look at why.
Digitization: The future is now
The digitization of the invoice management process is the future, and it's happening right now. AI is essential for managing the vast amount of data in automated systems.
By simplifying and automating the invoice management process, AI is changing how financial data is processed and analyzed. This empowers accountants to work faster, smarter and more accurately. AI enables faster and touchless processes, where matching orders to invoices, sending invoices to the right approver, data entry and much more is handled automatically.
What is AI in invoice management?
Artificial intelligence (AI) plays an important role in invoice processing, but there are different types of AI used in different ways. Generative AI, such as ChatGPT and large-scale language models (LLMs), are specifically designed for language processing. They can generate text and understand language in an impressive way. In invoice processing, however, a different type of AI is used: machine learning (ML).
Machine learning has been around for decades and mainly consists of algorithms that can derive operational rules from the training data they receive. Machine learning can be either black box or white box, also known as explainable artificial intelligence (XAI).
In black box AI, the learning process that the AI undergoes is not visible or understandable to humans. This type of AI makes decisions without us understanding why or how; we only see the results. With XAI, on the other hand, there is full transparency. This approach makes it possible to track and adjust the decisions AI makes, and ensure that they are based on correct information.
Streamline invoice management with AI
Your suppliers will appreciate how fast an AI-powered system can make invoice processing. With AI, you can ensure the correct payment of supplier invoices and make communication between you and your suppliers more efficient. This not only improves accuracy, but also strengthens your relationships through increased efficiency and reliability.
The benefits of implementing AI in your invoice management process
Automation of repetitive tasks
With AI and machine learning, repetitive and error-prone tasks such as data entry, invoice processing and bank reconciliation can be automated. This also applies to bookkeeping tasks and payment processing. Automating these processes frees up time for accountants to focus on more strategic tasks, while reducing the chance of errors throughout the process.
Improved accuracy in data processing
One of the biggest benefits of AI algorithms is their ability to analyze large amounts of data faster and more accurately than humans. This leads to more accurate reports, and discrepancies and errors that humans might have overlooked are detected.
Fraud detection and risk management
AI systems can detect fraudulent activities by identifying irregular patterns and anomalies in the data. By analyzing trends and historical data, AI algorithms can assess risk and contribute to better decision-making.
Predictive analytics
By analyzing historical data, AI can predict future trends. This capability helps your business with budget and financial planning, allowing you to make data-driven decisions on investments and cost management.
Customized financial reporting and data visualization
AI makes it possible to create customized reports that meet specific requirements from different stakeholders. This provides insights that are most relevant to each individual and makes it easier to understand and use the data.
Regulatory compliance
An AI system can help you stay on top of changes in regulatory requirements and applicable laws. By reducing the risk of non-compliance, the AI algorithms become an integral part of keeping you compliant throughout all your processes.
AI supports your decision-making processes
AI provides real-time financial insights, enabling you to make faster and more informed decisions. This leads to improved operational efficiency and increased profitability.
Are there risks associated with AI in invoice processing?
Implementing AI in accounting processes can seem risky. There are many concerns, including the risk of integrating with other systems without disrupting ongoing processes, loss of jobs to AI, and whether AI will be trained on the right data to provide accurate suggestions.
By working with a professional partner who has in-depth knowledge of AI and can provide detailed insights into the processes and how AI works in their system, AI becomes more of an asset than a risk to your accounting processes. An expert partner can help you minimize the risks of implementation and use, and ensure that AI delivers maximum benefit.
All in all, AI will increase efficiency and accuracy, as well as provide you with improved insights. Reduced risk of fraud, better governance and more informed decision-making are just some of the benefits AI will bring to your accounting department and your business as a whole.
Curious about the future of AI in the invoice management process?
Check out our Sofa Talks episode where we explore the future of AI in invoice processing and procure-to-pay.