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Why European Firms Rely on AI to Transform Invoicing?
Today AI has emerged as an effective solution, streamlining the most time-consuming steps involved in the processing of invoices and making the process more efficient.
FREMONT, CA: Invoice processing is a necessary task for organisations, and requires a qualified workforce to complete tasks. The invoice was prepared and processed manually or semi-automatically. But today, Artificial Intelligence (AI) is used for advanced invoice processing, and it has the potential to create new experiences and revolutionise billing automation and finance management. Read on to know more about the impacts AI makes in invoicing.
A lot of enterprises today are deploying or planning to use AI to automate costly, error-prone, and inefficient processes, while improving corporate decision-making and agility. Invoice processing is one application of Artificial Intelligence (AI) that finance professionals are especially excited about. Financial professionals see AI as the means for streamlining the invoice data capture process. Invoices can be received in paper or electronic format by anyone, anywhere. The invoices are then reviewed and forwarded for approval or coding. Much of these approval processes are entrusted with seasoned, trusted employees. Once invoices are approved, invoice data is keyed into an enterprise resource planning platform or other business systems, and the invoice is scheduled for payment, and physically filed.
All these manual processing results in costly and error-prone keying of invoice information, lost or misplaced invoices, lengthy approval and resolution cycle, compliance and security risks, and many ot
her difficulties. But today, invoice data capture has evolved to leverage AI. Data capture solutions that use AI can identify patterns in a document and determine the location of relevant information. Unlike other technologies that attempt to grasp the document, AI-powered data solutions take the cluster of tabular data for data extraction. AI can also help data capture solutions to determine where the information lies within the table.
Unlike other approaches to document processing, AI can classify different types of documents by reviewing several documents. Once AI has determined the unique attribute of an invoice document type, it can apply the classification rule to documents with variations and learn how to more accurately capture information based on historical and real-time data corrections and manual data entry. A data capture solution with AI can learn and apply the context of invoice information by identifying where staff locates the information required for data correction.
Manually processing invoices results in high labour costs: mail opening and sorting, keying of invoice data, matching of invoices and purchase orders, physically routing invoices to approvers, responding to supplier inquiries, inputting of invoice information into a system of record, and paper storage and retrieval. AI helps keep staffing costs down by automatically classifying documents, extracting invoice data, and posting and archiving approved invoices and data. Reports show that European organisations have reduced their invoice processing costs by 82 per cent by eliminating manual processes with data capture automation.
Seventy-three per cent of European finance leaders believe automation is improving their organisations’ ability giving employees more bandwidth for value-added tasks. AI reduces menial, repetitive, and time-consuming tasks such as invoice data-entry and invoice matching. With fewer employees needed for tasks, staff are freed to help in analysing data on operational performance, working capital, and corporate spending and also assist financial leaders in budgeting, planning, and forecasting. Their talents and expertise can be leveraged to benefit the organisation in a more strategic capacity.
AI streamlines the most time-consuming steps of processing invoices, including invoice validation, invoice data capture, matching of invoices and purchase orders and/or proof-of-delivery receipts, and the upload of information on approved invoices to an ERP system. The technology eliminates time-consuming manual tasks and allows buyers to customise workflows to meet the specific needs of their business process. Data capture solutions with artificial intelligence also provide accounts payable departments with the ability to manage higher volumes (from growth or acquisition) without increasing the number of staff. AI can also boost payment data accuracy without manual intervention, validating invoice data early in the process. Using data capture solution powered by AI accelerates invoice approve cycle time, which, in turn, enables organisations to capture more early payment discounts. An organisation which has automated invoicing powered by AI can process invoices in less than half the time the manual operation takes.
Using machines to capture and process invoice data might seem like a matter of science fiction. But automated invoice solution powered by AI is helping firms transform the invoice approval process by identifying patterns, learning and applying business rules, and understanding imperfections. AI enables firms to get rid of the repetitive and menial data capture tasks that are holding the task back. With AI, firms can reduce costs, increase staff productivity, accelerate cycle times, eliminate errors, and capture early payment discounts. That being said, AI undoubtedly delivers blockbuster benefits to European firms that are yearning for a transformation.
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