As businesses continuously strive for operational efficiency, artificial intelligence (AI) has become integral in transforming financial processes, especially in accounts payable (AP). By replacing outdated manual methods with AI-powered tools, companies are witnessing unparalleled improvements in accuracy and efficiency.
This blog explores five innovative AI tools that are shaping the future of finance.
1. Natural Language Purchase Requests
Traditional AP systems require users to log into their ERP and fill a lengthy form to request spend. The friction of this process can dissuade employees from following procurement policy, with unapproved spending running rife in many organisations, or purchase requests being raised after the spend is already committed, leaving the approvals process as little more than a formality, rather than a strategic financial control.
Natural language purchase requests, powered by NLP (Natural Language Processing) allows users to make purchase requests using everyday language via email. This keeps AP processes within the flow of work, allowing employees to request spend without having to log in to a complex ERP platform, improving user experience, policy adherence, and financial control.
2. Smart Invoice Inbox
Before AI, even with automated systems, invoices still needed to be uploaded to your ERP. With Kloo's Smart Invoice Inbox, suppliers send emails straight to the inbox, which are autonomously extracted, coded, uploaded, and summarised by OCR (Optical Character Recognition) technology, layered with AI.. This system improves the accuracy of data entry, reduces processing times, and allows AP staff to focus on more strategic tasks rather than mundane data rekeying.
3. AI-powered Matching
Matching invoices to their corresponding purchase order is an essential step in verifying an invoice and building a robust audit trail. While automated systems for matching have existed for some time, rules-based automated AP systems often struggle with processing and more complex invoices, forcing companies to fall back on time-consuming manual methods. AI-powered matching uses contextual reasoning to match documents accurately, even when these are more 'fuzzy' matches. This tool not only reduces the time taken for reconciliation but also decreases the financial risks associated with human error, thereby enhancing the reliability of the matching process.
4. AI-generated Approver Insights
Typically, the approval process can cause bottlenecks, as approvers either make uninformed decisions or need to spend time digging through spreadsheets or ERP data to evaluate the proposed expenditure against budgets, historical spend, and other factors. Kloo integrates seamlessly with your ERP and delivers AI-generated insights straight to approvers email inbox, allowing them to assess and approve or reject purchases without logging in, equipped with all the key information they need.
5. Natural Language Data Querying
Traditionally, accessing and interpreting accounts payable (AP) data often involved navigating complex databases or waiting for custom reports, a process that was both time-consuming and prone to errors. With Kloo's Natural Language Data Querying, finance professionals can now interact with their AP data using simple, conversational English. This tool leverages natural language processing (NLP) technology to allow users to ask straightforward questions like "What was our total expenditure with Supplier X last quarter?" and receive immediate, accurate answers. This shift significantly speeds up decision-making and enhances data accessibility, empowering users to engage more proactively with financial data and enabling a more intuitive and strategic approach to financial management.
The Bottom Line
The integration of AI into accounts payable signifies a transformative leap towards operational excellence. These five AI tools not only streamline traditional processes but also introduce a new era of financial management where technology and strategic insights align. As companies adopt these innovations, they experience enhanced efficiency, improved accuracy, and empowered decision-making. The future of finance is here, driven by AI, making every transaction and interaction smarter, faster, and more effective. This evolution is not just about keeping up with technology—it's about setting a new standard in financial operations.
