In the world of accounts payable (AP) automation, many organizations have relied on Optical Character Recognition (OCR) technology to streamline their invoice processing. However, with the advancement of Artificial Intelligence (AI), the landscape is changing rapidly. In our recent webinar with Ted from MakersHub, we dove into how AI-powered AP solutions are a game changer, taking automation to the next level.
If you missed the live session, you can still watch the replay to see how AI is making AP processes smarter, more efficient, and future-ready.
What’s the Difference Between OCR and AI?
OCR: Limited Scope
How It Works: OCR technology scans and reads text from physical documents or PDFs, extracting basic information like invoice numbers, dates, and amounts.
Limitations: OCR is rule-based, meaning it can struggle with variability. It requires clean, structured formats to operate effectively, and any deviation (like different invoice layouts or poor-quality scans) can result in errors.
Example: OCR can read numbers and text, but if a vendor’s invoice template changes, the system may fail to extract data accurately.
AI: Intelligent Automation
How It Works: AI doesn’t just read data—it understands it. AI-powered AP systems go beyond basic extraction by recognizing patterns and learning from previous data, improving accuracy over time. They adapt to different invoice formats, automatically identifying relevant information without pre-defined rules.
Key Benefits: AI enables smarter, more flexible automation. It can identify discrepancies, categorize data, and even flag anomalies for further review, which significantly reduces human intervention.
Example: AI can handle invoices from multiple vendors, even if formats differ. It can also predict issues like duplicate payments or missing data by learning from historical patterns.
Why AI is Paving the Way for the Future of AP Automation:
Flexibility and Scalability
Unlike OCR, which struggles with unstructured data, AI adapts to changing formats and rules. It scales easily as your organization grows, processing more invoices with increasing efficiency.
Learning and Improving Over Time
AI systems learn from the data they process. Over time, they become more accurate at identifying key information, reducing the need for human review and speeding up the AP workflow.
Enhanced Workflow Automation
AI-driven systems don’t just capture data—they integrate it seamlessly into the approval workflow. AI can automate approval routing, flag potential errors, and even make suggestions on approval hierarchies based on previous transactions.
Real-Time Insights and Predictive Analytics
AI offers real-time data insights and predictive capabilities. This allows finance teams to proactively manage cash flow, anticipate vendor payment issues, and make strategic decisions with greater confidence.
Cost Savings and Efficiency
By reducing manual intervention and improving accuracy, AI can cut down on processing costs. It minimizes the errors that OCR alone cannot handle, saving both time and money in the long run.
Watch the Replay to Learn More:
Ready to learn more about the impact of AI on AP automation? Watch the replay of our webinar to see live demos and learn how AI is transforming accounts payable workflows.
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