Accounts Payable AI: The New Competitive Advantage
Accounts Payable AI (artificial intelligence) is the latest technological movement in the accounting world. Why? If sorting through databases faster, more sophisticated reporting, and less human error aren’t good enough reasons, then I don’t know what is. Using AI, in organizations can solve numerous business-related issues without depleting precious resources. Accounts payable is an industry where the advantage is going to those with automation and AI.
Using AI in Accounts Payable
Derek Bang, CPA, CGMA, the chief strategy and innovation officer at Chicago-based Crowe Horwath, one of the largest accounting firms in the United States says, “All firms…should be thinking about how to adopt advanced technology like artificial intelligence”. This type of technology is highly adaptable to each organization’s individual needs. Which means it can work in the AP department of most organizations. Accounts payable AI is capable of machine learning to where AP processes can become seamless.
How Artificial Intelligence Can Solve Problems
One of the main benefits of using AI is that this type of technology can analyze and store large amounts of data immediately upon entry. Therefore when related to accounts payable, it can be used to increase efficiency and reduce errors. An organization can use this system to automatically pay on accounts when certain criteria are met so that late payments are virtually non-existent.
Additionally, When an organization works internationally, accounts payable AI can read and translate different languages. It can also be a way for an organization to protect itself against fraud. This technology has simply taken the basics of AP automation, including elements like e-invoicing and dynamic discounting.
Myths and Truths Regarding Artificial Intelligence
One of the most common myths surrounding Artificial Intelligence is that the use of it will decrease job opportunities within an organization. The truth is that AI allows an organization to better utilize its most valuable resource, the employees, in areas where technology isn’t as beneficial.
Another myth of implementing automation in accounts payable, is that the process is difficult and time consuming. Most of AP solutions are designed to be implemented into an organization with little transition period. This means an organization doesn’t have to worry about spending precious time training or transitioning employees to the new system.
Accounts payable AI is designed to stimulate human intelligence so that business tasks can be performed in a more efficient way. Decreased fraud, help with international transactions, more efficient systems…benefits are everywhere with AI. More than 80% of executives believe AI leads to a competitive advantage, and 79% believe it will increase their company’s productivity, according to a recent MIT-Boston Consulting Group survey of more than 3,000 business executives. “You need to start putting some money aside into innovation.” said Derek Bang. Now is the time to have the competitive advantage.