Invoice processing is a long, tedious task, prone to inaccuracies and errors, requiring an equipped workforce to do monotonous jobs. Every business requires invoices to operate correctly. Any changes to the workflow in this field will significantly impact the company as a whole.
In comes Artificial Intelligence. It has the potential to generate new practices and transform invoice automation solutions and finance management.
The first concern to address here is the inadequacy of digital bookkeeping. Because the fact is that digital bookkeeping doesn’t equal automation and efficiency, and there are better means to carry out this business aspect. And it includes Automated Invoice processing using AI.
Current Challenges in Invoice Processing
- Multiple Invoice Data Points Leading to Errors:
Large corporations get invoices from various suppliers over multiple channels. Often, a lot of time and manual effort have to be dedicated to all these separate invoices into the centralized system. The error-prone data entry at the beginning of the invoice processing workflow can additionally lead to potential blunders ranging from small to disastrous.
- Data Mismatch:
The accounts payable team performs invoice data matching manually. And when the same activity is repeated hundreds of times every day, the amount of time and money wasted is also high. Plus, even the most precise human eye cannot promise complete accuracy.
- Cost Per Invoice Processing:
The current invoice processing is mostly manual with several costs associated— manual hours, paper, etc. Apart from this, there are additional hidden costs, such as late fees, missed early payment discounts, and accounting mistakes.
How to Use AI to Automate Invoices and Improve the Process?
AI uses invoice capture solutions to capture key-values required to auto-process invoices, and it then imitates the human mind while detecting and capturing data from the document.
It gives human administrators intuitive support, allowing them to validate and review captured data in mere seconds. The AI invoice processing solutions can be deployed on the cloud, guaranteeing best-in-class safety and scalability, along with complete 24×7 access from any device, adding greater operational efficiency to the AP automation solutions.
Benefits of using AI for Invoice Processing
- Faster Invoice Processing: For a single invoice, manual data extraction requires over three and a half minutes, while invoice extraction machine learning requires less than half a minute. Future invoices from the same supplier will need even less period to process, as the program now remembers it and no longer needs human validation.
The solution becomes smarter with each new invoice that it processes; therefore, the company will ultimately have fully automated invoice processing.
- Enhanced Data Accuracy: AI and machine learning recognize and capture invoice data utilizing neural networks to improve its understanding and capacities with each document processed. Unlike a human operator, smart invoice processing software does not pose the risk of errors due to fatigue from tedious, repetitive tasks.
- Increased Productivity: With AI & machine learning carrying out the priority manual tasks, the Accounts Payable team can then shift their attention to value-generating activities, lie
- Financial planning
- Getting actionable insights with analytics
- Tracking business spend
- Improving vendor-customer connections
- Improving Bottom-Line: Invoice processing machine learning has a larger financial impact, and it is marked with on-time invoice approval, bringing in early payment discounts from suppliers, ultimately increasing profit margins.