How is Gen AI applicable in the accounts payable process?
Key Facts
- 74% of AP departments are expected to use AI by the end of 2024, signaling rapid adoption across finance teams.
- AI-driven OCR and machine learning achieve up to 99% accuracy in extracting invoice data, minimizing manual entry errors.
- A U.S. freight forwarder cut invoice processing exceptions by 70% using Gen AI for multi-language invoice automation.
- The accounts payable automation market is projected to reach $1.9 billion by 2025, growing at 17% annually.
- Over 50% of finance professionals say outdated tools hinder their ability to work efficiently and effectively.
- 70% of finance teams rank reducing manual errors as their top priority when adopting AI solutions.
- More than 25% of Gen Z and Millennial employees would leave their jobs due to outdated financial systems.
Frequently Asked Questions
How does Gen AI actually save time on invoice processing for small businesses?
Gen AI automates data extraction from invoices—regardless of format or language—with up to 99% accuracy using AI-driven OCR and machine learning, eliminating manual entry. This can save SMBs 20–40 hours per week on repetitive tasks like data input and matching to purchase orders.
Can Gen AI reduce errors in accounts payable, and is there proof it works?
Yes, Gen AI reduces manual errors by automating data capture and validation, with one U.S. freight company cutting processing exceptions by 70%. Seven in 10 finance professionals also cite reducing errors as their top priority, highlighting the impact of automation.
Isn’t off-the-shelf AP automation good enough? Why consider custom Gen AI?
Off-the-shelf tools often have brittle integrations and lack compliance controls like SOX, limiting scalability. Custom Gen AI solutions—like those built by AIQ Labs—enable deep ERP integration, adaptive workflows, and ownership of the system instead of relying on rigid, subscription-based platforms.
How can Gen AI help with fraud detection in accounts payable?
Gen AI flags anomalies, duplicate invoices, and high-risk transactions by analyzing historical patterns and screening against sanctions lists in real time. This supports compliance and risk monitoring without replacing human oversight, but enhances early detection.
Will implementing Gen AI in AP really deliver ROI for mid-sized companies?
Yes, custom Gen AI implementations can achieve 30–60 day ROI by reducing manual labor, accelerating approvals, and improving cash flow forecasting. With over half of finance professionals reporting outdated tools hinder performance, automation directly addresses efficiency and retention challenges.
Can Gen AI automate approval workflows intelligently, not just route invoices?
Yes, Gen AI enables dynamic approval routing using NLP and historical data to assess risk, urgency, and spending thresholds, creating intelligent workflows. This goes beyond basic rules by adapting to context, similar to AIQ Labs’ Agentive AIQ platform for real-time decision support.