78% of CFOs See AI Integration as Vital for Account Payable Efficiency

In today’s digital economy, accounts payable (AP) departments are evolving, yet many still rely on outdated, manual practices. With business-to-business (B2B) payment volumes on the rise, companies are increasingly focusing on automating AP systems to improve efficiency, accuracy, and decision-making.

A recent PYMNTS Intelligence report, “Automating Accounts Payable for Cost Savings” developed with Finexio, highlights the transition toward AP automation as companies face challenges with traditional practices. While some AP departments (34%) process up to 5,000 invoices monthly, nearly half of invoices remain paper-based, and 38% of payments are handled manually. This dependence on outdated methods strains resources, especially as 80% of businesses expect payment volumes to increase in the coming years.

The Push for AP Automation

AI is emerging as a key solution for addressing inefficiencies in AP workflows. The report found that 78% of CFOs view AI integration in AP as essential. Additionally, 73% of mid-sized business leaders believe automation not only improves cash flow but also contributes to growth and savings.

Despite these benefits, only 17% of enterprise firms currently operate their source-to-pay cycles with minimal human intervention. Many large enterprises continue to manage multiple AP systems, with close to 60% of companies with revenues between $10 billion and $20 billion using five or more different systems. This fragmentation leads to delays, inefficiencies, and increased risks of human error, making the case for automation even stronger.

Benefits of AP Automation

Automating AP processes offers a range of advantages:

• Reduced Fraud Risks: Paper checks account for roughly 60% of fraud in B2B transactions. By digitizing AP workflows, businesses can minimize check usage and, subsequently, their exposure to fraud.

• Enhanced Cash Flow: Around 44% of mid-sized companies anticipate improved cash flow and cost savings from automation. Platforms like Finexio’s solutions help firms monetize payments, creating new revenue streams.

• Data-Driven Insights: Automation improves data analytics, with 53% of AP leaders noting the importance of advanced reporting capabilities to streamline decision-making.

Moving Toward a Modern AP Environment

Adopting AI-driven AP automation is increasingly seen as essential, not optional, for competitive success. Firms can strengthen cash flow, prevent fraud, and drive better decision-making with up-to-date technology. Partnerships, such as Emburse and Finexio’s collaboration, reflect a growing trend to embed AI into AP processes, providing firms with essential tools to move away from manual workflows.

The Future of Accounts Payable

With AP automation still in its early stages, companies that embrace AI-driven solutions are well-positioned to gain efficiencies, reduce risks, and thrive. As AP departments continue to modernize, automation will play a pivotal role in securing a competitive edge and supporting sustainable growth in a rapidly evolving marketplace.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.