AP automation solutions aim to streamline the entire accounts payable process, offering features like automated workflows, vendor management, and electronic invoicing. Unlike traditional OCR accounts payable tools, AP automation solution can process invoices faster, more accurately, and with fewer errors, ultimately improving cash flow management and reducing the risk of fraud.

Optical character recognition (OCR) is a legacy software tool used for digitization of paper-based information assets. OCR tools transform scanned documents or photos into editable and searchable text. Using OCR tools, organizations can quickly digitize and save massive amounts of documents, such invoices and receipts, so that they can later be accessed and searched with ease. To automate data entry and streamline processes, OCR tools can be integrated with other business applications, such as accounting software.

While OCR tools and AP automation solutions both have the potential to improve process efficiency and accuracy, adoption of AI-led AP automation solutions offers a far better proposition than using OCR tools. There are several benefits of AI-led AP automation over OCR and intelligent document processing (IDP) solutions.

Some of the 5 benefits of AI-led AP automation over OCR accounts payable Tools include:

1. Improved accuracy and reduced errors:

AI-led AP automation uses advanced machine learning (ML) algorithms to accurately extract data from invoices and other documents. This results in significantly lesser number of errors compared to OCR tools, which can sometimes struggle to accurately interpret the text on invoices and other documents. Moreover, AI-led AP automation delivers a greater degree of straight-through processing (STP) in comparison to OCR tools; need for human intervention is significantly reduced as ML models learn from exception cases.

2. Greater efficiency:

AI-led AP automation can process invoices and other documents much faster than OCR tools. This can help to reduce the amount of time that your AP team spends on manual data entry and other tedious tasks, freeing them up to focus on more value-added and higher priority activities.

3. Process-centric approach to automation:

While IDP solutions offer AI/ML capabilities, these solutions are not customized for specific processes. Enterprises need to incur significant costs on training ML models and integrating various software components to deliver AP automation. The time to value is significantly greater in the case of IDP solutions when used for AP automation. AI-led AP automation solutions deliver faster time to value at a lower cost of ownership.

4. Better integration with other systems/applications:

AI-led AP automation systems are designed to integrate seamlessly with other systems, such as your accounting software and ERP applications. This can help in streamlining the overall AP process.

5. Enhanced data security:

AI-led AP automation solutions often include robust security features to protect an organization’s sensitive data. This helps in reducing the risk of data breaches and other security incidents.

So before you set the stage for a successful AP Automation, The Institute of Finance and Management (IOFM) suggests financial leaders to understand some nuances before you or your organization is in the process of proposing or implementing an automated solution. 

Zycus AP automation (APIA) solution offers holistic AP transformation with AI-led automation. Enterprises can achieve a greater degree of invoice automation and drive AP transformation via

1. Cost-efficient invoice processing
2. Better supplier communications
3. Dynamic discounting
4. Anomaly and fraud detection
5. Global Compliance

To take care of vital pain points of your AP team, read: How organizations can use AP Automation as a strategic business driver

AP Automation also offers a template-free approach to invoice data extraction and processing and delivers a greater degree of STP with high accuracy at a lower cost of ownership. Zycus’ AP automation suite provides users with dedicated features and capabilities for invoice content compliance, e-invoice compliance and tax compliance.

Anomaly and fraud detection capabilities include identification of fraud cases (e.g., duplicate invoice and phantom vendor) and safeguards against phishing and spoofing. Better supplier communication is achieved with automated email review and reply via AP Smart Desk.

To understand the critical points that AP automation can work on to cut costs in your organization, read: Three ways AP automation can help organizations reduce costs

Conclusion

AI-led AP automation solutions provide a significant advantage over traditional OCR tools in streamlining the accounts payable process. By leveraging machine learning and advanced automation features, enterprises can drastically reduce manual intervention, minimize errors, and accelerate invoice processing. Unlike OCR accounts payable tools, which often require human oversight for error correction, AI-driven systems offer a higher degree of accuracy and efficiency.

Moreover, these automation solutions integrate seamlessly with existing financial systems and offer enhanced data security, helping businesses optimize cash flow management and mitigate risks like fraud. For organizations aiming to improve operational efficiency, investing in AI-led AP automation is a forward-thinking and cost-effective approach.

For more information, explore how Zycus can help you transform your AP processes with a book a demo.

Related Read:

1. What is Invoice Approval Workflow?
2. Setting Up Internal Controls in Accounts Payable Processes
3. The Ultimate Guide to Accounts Payable Automation
4. 5 Key Benefits of Enhancing Your Business with an e-Invoice Generation Tool
5. White Paper – Building a Business Case for AP Process Automation
6. White Paper – 4 Pillars to Accounts Payable Automation
7. Solution – Merlin AP automation AI procurement software
8. Solution – Accounts Payable Automation Software