FAQs on AI-Powered Accounts Payable Automation with Cevinio

Introduction

Artificial intelligence (AI) is without a doubt the hottest topic in the tech world today. Powerful new machine-learning technologies are quickly reshaping the way companies operate, from IT, to marketing to customer support and beyond. These smart new solutions improve efficiency, eliminate time-consuming manual tasks and greatly increase productivity through automation. 

Considering the wide range of benefits that AI offers, it is no surprise that this technology is also transforming key finance operations, including accounts payable (AP) management. If you are like most Finance department leaders, you are probably curious about what AI can actually do – and concerned about its possible limitations. In this article, we go beyond the hype and answer the real questions about what AI-powered AP solutions can do for you. 

Here are the top questions we will answer: 

• What are the benefits of an AI-powered AP solution? 
• How does AI-driven invoice processing work? 
• What are the main challenges of implementing an AI-powered AP solution? 
• How much does AI-driven invoice processing cost? 
• Will AI replace human AP employees? 
• How can I get started with AI-driven AP?

Cevinio’s perspective on AI-driven AP technologies

Before we start answering these questions, we want to explain how Cevinio gained so much knowledge about AI-driven AP technologies in the first place. For over 15 years, we have been developing cutting-edge AP solutions with a strong focus on harnessing the potentials of AI.  

Our AI-driven solution is constantly evolving, and we continue to build upon the lessons we have learned. This gives us a clear view of how far these technologies have come, what they can offer today and in which way they will develop in the future. The questions and answers below come from our own extensive research and interactions with experts and leaders throughout the global Finance industry.

What are the benefits of an AI-powered AP solution?

AI-driven AP offers many benefits that streamline your company’s invoice processing, so you can improve efficiency, avoid risks and lower costs.  

Key advantages of AI for invoice processing include: 

• Greater efficiency: AI automates manual tasks like data validation, invoice coding, compliance checks and invoice routing. This significantly speeds up your invoice cycle and frees up your employees to focus less on repetitive tasks and more on strategic projects that add more value to your organization. 
• Lower invoice processing costs: AI-driven invoice processing lowers costs in many ways, especially by eliminating costly manual errors and preventing compliance violations and late-payment penalties. 
• Improved data matching: AI-driven systems ensure accurate extraction and interpretation of invoice data, so you avoid mistakes that may occur when invoices are processed by hand. Cevinio customers, for example, benefit from our AI technology which automatically processes both PO and non-PO invoices. When handling non-PO invoices, for example, our software instantly codes them to a GL account, cost center, tax code, project code, VAT code or any pre-defined text. 
• Improved compliance: AI helps your company adhere to regulations and internal policies when handling invoices, which reduces the risk of negative audit results, fraud and legal issues. 
• Better control: AI-driven approval and business process workflows enable you to boost efficiency by automating your invoice processes based on predefined rules. If your company receives an invoice with price or quantity discrepancies, missing information or flagged items, our AI-powered tool automatically routes it to specialists for prompt and effective exception handling. 
• Scalability: AI-powered systems are adaptable and capable of handling increasing invoice volumes without requiring additional manual effort. This enables them to support your business as it grows. 
• Future-proof solutions: By its nature, AI is continually learning and evolving, which means it is a future-proof solution. A well-built AI-driven AP tool gives your company a competitive advantage and keeps it on the cutting edge.

How does AI-driven invoice processing work?

AI-driven AP relies on advanced technologies that allow software to read and understand human language. These technologies include: 

• Optical character recognition (OCR): Printed text is converted into machine-encoded text, which the AP tool can process. 
• Natural language processing (NLP): The software understands human language and responds accurately to it. For example, it can spot errors on an invoice. 

A typical AI-driven AP process includes steps like these: 

• Invoice capture and digitization: Converting paper invoices into machine-readable formats like PDF or XML. 
• Data extraction: Identifying relevant information like the invoice number, vendor details, dates, total amount, line-item information and other details. 
• Document classification: Sorting invoices and automatically routing them to the right departments or individuals for approval and processing. The approval step can also be automated. 
• Data validation and verification: Cross-checking the invoice details with purchase orders (PO), goods receipt notes (GRN) and other relevant documents and rules. The same applies for non-PO invoices. 
• Fraud detection and compliance: Automatically analyzing invoice data to detect and flag potential compliance issues. 

What are the main challenges of implementing an AI-powered AP solution?

So far, we’ve highlighted the benefits and functionalities of AI-powered AP tools. But when choosing the right AP solution there are also some potential challenges you should be aware of. These include: 

• Data quality: The accuracy of any AI model relies on the quality of the data used to train it. If an AI-driven AP tool is trained using inconsistent or inaccurate master data (such as vendor details and product codes), this will cause it to make mistakes when extracting and validating information from invoices. To resolve this, you may need to invest in data cleansing to standardize and update your master data before integrating an AI tool. 
• Integration with existing systems: Companies rely on a range of business software, such as your ERP system (or, in some cases, multiple ERP systems). When selecting an AI-driven AP tool, it is crucial to ensure that it will seamlessly integrate into your tech landscape. That is why Cevinio takes an ERP-agnostic approach, which ensures smooth communication and allows you to establish a unified, centralized AP management system. 
• Change management: As with any new tool, it takes careful change management to overcome employee resistance and ensure adoption. To achieve this, it is important to choose a well-designed, user-friendly and supportive system to begin with. You will also need to offer the right level of training and assistance to get your staff up and running smoothly with your new AP system.

How much does AI-driven invoice processing cost?

Cost is always a factor when deciding whether to invest in new business technology. The main costs associated with AI-driven AP software include: 

• Implementation costs: Integration services, essential training sessions, consultation services
• Subscription fees: Most AI invoice processing tools are available for a monthly or annual subscription fee which varies depending on the volume of invoices you process.
• Support packages: Ongoing maintenance and support offered by your vendor after the AI-driven AP tool is implemented. 

If you would like to learn more about Cevinio’s specific costs, please contact our team for details. 

Will AI replace human AP employees?

The short answer is: No. At least, not any time soon. While AI can definitely enhance and improve the way you and your team process invoices, it is a tool – not a replacement for human talent and creativity. Your team members can benefit from saving time and energy, which they can devote to more strategic tasks that only humans can do. This includes tasks like these: 

• Overseeing automated processes and intervening when necessary. AI excels at routine tasks, but some nuanced situations (exceptions to the rules) still require human attention and judgment. 
• Optimizing operations: With their years of experience in the industry, your AP team members possess expertise and insights that AI alone lacks. They understand the needs of your business, so they can help identify ways to use business tools, such as AI-driven AP software, more efficiently. 
• Building vendor relationships: Your AP team members are also the face of your company. They are crucial points of contact for vendors and play a huge role in maintaining strong relationships with them. 

How can I get started with AI-driven AP?

Are you considering adding AI technology to your accounts payable processes? To help you choose the right solution for your business needs, we have created this “Quick guide for selecting the best accounts payable tool for your business.” It gives you a step-by-step plan to help choose the best solution to reach your goals. 

As you can see, AI-driven AP technology is much more than just a hype. It is a proven tool for improving your invoice processing, protecting your business, making life easier for your team members and keeping your vendors happy by avoiding lengthy processing times. 

Cevinio has years of experience and expertise in the field of AI-driven AP. Our solution offers all the benefits described above. If you would like to learn more about how we can help you achieve your goals, we invite you to contact us today.