Macroaxis Private Story

In addition, many multinational organizations have adopted some form of AP automation software in accounts offices, which has resulted in a significant decrease in operational costs and an increase in efficiency.

AP automation software is a modern-day technology that helps companies with invoice management. It enables organizations to manage large volumes of invoices and financial transactions between their business and their suppliers. Organizations are now able to process supplier invoices with limited to no human interaction through this software, enabling them to digitalize the entire process that was previously handled manually by their accounting team.

AP automation software is constantly evolving, and the integration of emerging technology trends like artificial intelligence (AI), blockchain, machine learning, and big data are reshaping its future. Here is how all these trends are impacting payable management for top investors and companies:

1. Machine Learning and AI

As a common type of artificial intelligence (AI), machine learning collects data or uses available data to teach itself. The software is based on a set of algorithms, which finds repetitive patterns in data to continually upgrade and improve.The machine learning market for accounts payable automation increased from $6.1 million in 2016 to $76.8 million by 2021, at a 53% compound annual growth rate. As AP automation is becoming more prevalent, it is also becoming more data-driven; machine learning comes to the rescue in such cases.

The account payable industry has artificial intelligence and machine learning as the most recognizable technologies today. Artificial intelligence automatically detects errors in AP software and makes intelligent decisions regarding the next invoice, which significantly improves approval workflows and shortens the invoice cycles. In addition, machine learning integration in AP technologies has introduced an automated system of interactive chatbots which can perform administrative tasks for your staff. These tasks can automatically send reminders to an approver about their pending invoice. It also automatically allocates the costs in an organization and codes vendor invoices by using complex suggestions and buying patterns. Removing redundant invoicing processes and automation significantly speeds up the entire accounts payable process.

This effective integration of AI and machine learning in account payable automation reduces temporary hiring and automation for your company. In addition, the automated administrative process has enabled top companies to shift roles of their AP professionals from administrative to more strategic ones, which eventually reaped higher returns on low cost in the long run.

2. Big Data

Did you know that about 27% of companies in the AP field are familiar with big data today? Big data integration allows these companies to make more strategic, well-informed, and analytical decisions. Data also helps in predictive analysis of changing financial trends and helps in AP reporting that provides actionable insights of the organization to their executives. Data integration with ERPs and other economic systems improves control of valuable internal reports on financial matters.

Using data in AP software will make the account payable process more effective and help organizations optimize the supply chain, supplier base, and cash flow. In addition, data integration will set any company on the road to continuous advancements in technology and procurement.

3. Blockchain Technology

In AP automation software, blockchain could bring control to data and payments and anticipate changes in the ecosystems operating in the future. Blockchain can increase the security of a company’s valuable data and money transactions. Smart contracts and blockchain technology eliminate the need for middlemen to enforce contracts, perform background and criminal checks and verify transactions.

This plays an important role for companies that get their supplies from top manufacturers that value privacy and confidentiality. Integration of blockchain technology will also decrease latency in transfers between a company and its suppliers or vendors.

Endnote

Based on an Institute of Finance and Management analysis, organizations today are evaluating their futures by planning their investments in not stock but rather technology. Companies worldwide assess their position in the market based on their current state of technology and new source-to-pay offerings, and therefore the need to automate the payables function remains essential

AP automation software has become a need of every account payable service company and is no longer a luxury designed for multinationals only. AP automation has been helping companies optimize their performance, improve their cash management, control spending, and mitigate their overall risk. The two significant shifts impacting the AP department's role today are the disruption through technology and the profession-wide change from a compliance role to a more advisory role. Your company must also train its AP professionals to embrace new skills and adapt to the ever-changing technology before making its shift to automated AP technology.