Updated: Oct 5, 2021
Artificial intelligence (AI) is changing the future and face of the procurement to payment process. This tool can provide impressive benefits such as detecting duplicate payments before they are made, catching errors at the transaction level and presenting management with more powerful data insights.
AI is one of the hottest buzzwords in the majority of business sectors and is often used as an umbrella term describing technology that simulates human intelligence.
I have been working with AI solutions since the 1970s. The first application was at Insurance Systems of America on the Alpha Index System. It used an AI algorithm that was invented at the Census Bureau in the 1800's. It could take a phonetically spelled name and find all the possible matches within a data file.
What we have now are computers that are approaching the capabilities of the human mind. Dr. Moore's Law has worked out; every 18 months the power of the computer chip has doubled.
The Procure to Payment Process will stand to benefit significantly from AI. The ACFE points out that around 5% of the revenue of organizations is lost to fraud. Most of that fraud has a P2P component. Additionally, duplicate payments from errors are significant waste of resources. I remember when a Fortune 1000 organization paid me twice for a monthly invoice that totaled over $1.2 million. They never caught that mistake. I had to point it out to them at the end of the contract.
The specifics of how AI will change the way AP functions are still under development. Come to one of our events concerning AI and understand what the currently available tools offer.