Using AI and payment automation to outpace competitors
By Dr. Angela Murphy, VP, Business Development, Photon Commerce
Payments automation and Artificial intelligence (AI) have become increasingly important in the world of finance, as businesses look for ways to streamline and optimize their operations. AI has captured the public imagination in recent years, with many people wondering what it will mean for the future of work and society. With B2B payments ballooning to over $120 trillion dollars ($25 trillion in the U.S, alone), technology companies are looking for ways to tap into the payments ecosystem to streamline manual processes. Payments automation has emerged as a key tool for businesses, helping them to reduce errors, improve efficiency, and strengthen relationships with customers and partners.
Many businesses are struggling to keep up with the demands of the digital economy and are looking for ways to improve their efficiency. Companies utilizing AI have the potential to drive significant business automation, particularly in areas such as accounts payable and back office operations. The goal for technology providers is to ensure that within five years, over half of invoices in the U.S. will be processed without human intervention. By automating routine tasks and making it easier to process and analyze data, AI can help businesses save time and resources, while also reducing the risk of errors.
Payments automation is another key area where AI is having a major impact. By automating the process of making and receiving payments, businesses can reduce errors, streamline transactions, and improve their overall financial management. In the context of accounts payable, manual processes and errors can lead to delays and disruptions in the supply chain. Over one-third of B2B payments in the U.S. are made on paper check, creating significant strain on supplier/buyer relationships. By automating these processes, businesses can ensure that payments are made on time and that they have a clear and accurate record of their financial transactions. Companies that have already begun digitization efforts in the back office are seeing cost reductions of greater than 50%. The even greater benefit is utilizing payments transparency to improve supplier relationships while also creating revenue opportunities with buyers.
Payments visibility and cash flow management are key to the scalability of any business. By having a clear and accurate view of their financial transactions, businesses can better understand their cash flow and make informed decisions about how to manage their resources. This can be particularly important for SMBs, which often have limited resources and need to be strategic in their financial planning. One way in which businesses can automate their accounts payable processes is by using digital payment networks, which can facilitate real-time payments and provide greater visibility into financial transactions. These networks can help businesses to reduce the risk of errors, streamline their operations, and strengthen their relationships with customers and partners.
Companies adopting solutions which include artificial intelligence will outpace their competitors in growth exponentially in the next three years. The combination of AI and payments automation helps businesses operate more efficiently and effectively, while also reducing the risk of errors and improving relationships with customers and partners. Cash flow visibility and real time data accessibility down to the line item level are game changers for any industry.
Angela Murphy, PhD, is a thought leader in B2B payments, fintech, credit cards, partnerships, and innovation strategy. She commercialized one of the largest closed-loop card products and invoicing networks in the US and currently works at the intersection of strategy and insight in the payments industry. Her background in eCommerce and solutions integration informs her expertise on digital commerce and payments innovation. Angela regularly provides guest lectures and webinars for the University of Berkeley and consulting firms around the world and is a Founding Fellow of Coruzant Technologies. Her thought leadership has been featured on PCN, MPC and Versatile PhD.