At Vic.ai, we're all about using Artificial Intelligence (AI) to transform enterprise finance. The term "AI maturity" refers to the extent to which an organization has integrated AI capabilities to achieve optimal performance. It's an adoption journey that progresses through stages—awareness, operationalization, scaling, and innovation—ultimately leading to autonomous systems that enhance decision-making and drive business value.
Having an AI maturity strategy means systematically planning and implementing AI capabilities to achieve optimal business performance. It's a roadmap to unlock AI's transformative potential fully.
The AI Promise in AP Operations
Let's back up and start by looking at AI in AP operations. We've all heard about the drudgery of manual invoice handling, but what if AI could change the game? Let's dive into how AI is revolutionizing AP operations and why embracing this technology is high time.
Imagine a world where invoices are automatically posted to your accounting software, data is processed swiftly and accurately, and predictive insights are instantly available. That's the promise of AI. It's not just about automating tasks; it's about achieving a level of autonomy that was previously unimaginable.
AI-powered systems can intelligently extract data from invoices, match them to purchase orders, and even route them to the appropriate approvers. It's not just about replacing human effort; it's about augmenting it and making AP departments more productive, visible, and in control.
The urgency of elevating AP operations with AI
According to recent data, 55% of finance professionals are considering leaving their jobs due to burnout. A staggering 84% of a typical AP professional's day is spent on manual, repetitive tasks, according to IOFM benchmarking data. AI can eliminate these manual tasks, freeing time for more fulfilling, higher-order activities like data analysis and stakeholder collaboration.
Currently, only 24% of AP departments use AI-powered systems (IOFM virtual town hall meeting poll results, August 2023). However, 64% of CFOs believe autonomous finance can become a reality within six years, according to Gartner's report Achieve Autonomous Finance with 3 CFO Mindset Shifts. The AP departments that will make the most significant strides will be those that achieve AI maturity.
The journey to AI maturity involves several stages:
1) Awareness: Understanding the benefits of AI and exploring its applications.
2) Operationalization: Deploying AI systems in one or more workflows.
3) Scaling: Expanding AI across the organization to address various problems and opportunities.
4) Integration: Merging AI with other business systems and processes.
5) Innovation: Using AI to create new products and initiatives.
Crafting a winning AI strategy
Crafting a winning AI strategy involves identifying key business challenges and aligning AI capabilities to solve them. It's a roadmap that guides you through data capture, automation, and predictive analytics, ensuring seamless integration with existing systems. The goals with achieving AI maturity in AP are to unlock unparalleled efficiency and strategic insights.
Here are a few concrete use cases for AI in AP:
Intelligent Data Capture: Use machine learning algorithms to extract vendor details, invoice dates, and amounts from invoices in any format.
Invoice Classification: Automatically categorize invoices based on various criteria and detect duplicates.
Invoice Matching: Match invoices to purchase orders and delivery receipts automatically.
Invoice Approvals: Use AI to manage business rules for invoice approvals, eliminating the need for manual setup.
Exceptions Management: Utilize AI-enabled process mining algorithms to capture all variations of procure-to-pay transactions, reducing invoice exceptions.
Reporting and Business Intelligence: Use AI to identify and organize data from various sources, delivering real-time and predictive insights.
AI is not just a technological advancement; it's a lifeline in our data-driven world. From eliminating manual tasks to providing predictive insights, AI offers unparalleled levels of productivity and control in AP operations. It's not a question of "if" but "when" to deploy AI in your AP department.
So, are you ready to elevate your AP operations and take a step closer to autonomous finance? At Vic.ai, we're here to help you on this transformative journey. Let's embrace the change and be the pioneers of this exciting new frontier in enterprise finance.