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For every dollar a consumer spends, businesses spend 11 times more. At the core of every business lies a constant flow of money in and out, governed by contracts - with employees, customers, and vendors. Often, these documents are viewed as tactical necessities rather than strategic assets. It's only during cost-cutting or optimization exercises that executives start reviewing them for insights. And this is the crux of the challenge we're addressing.
Today, the accounts payable industry is valued at ~$8.9 billion and is expected to grow at ~9% CAGR over the next decade. Despite its size, the needs of this industry remain underserved. Procurement, invoice processing, and AP functions are still driven offline (via email, documents, or in-person interactions) or on outdated ERP systems
While ERPs have been the norm for over 30 years, our research with multiple Fortune 500 companies revealed that they are better suited as systems of record rather than systems of action. Creating efficient processes around ERPs is challenging. You can easily create a purchase order or invoice, but data entry is manual, collaboration is limited, and integrating ERP data with other systems is complex.
We don't fault companies for lacking cutting-edge solutions in this area. After all, these processes are mundane, often perceived as non-core to the business. Many choose to outsource them to save costs, while those handling them internally rely heavily on Excel and email trails. Until recently, there was a lack of technology adept at solving these use cases.
Artificial Intelligence (AI) is poised to disrupt these core functions by excelling at mundane tasks, sifting through vast volumes of documents and data, and deriving insights. We're not suggesting that traditional human-led processes can be entirely eliminated by AI. While AI can quickly achieve 0-80% accuracy, reaching 100% accuracy is extremely challenging.
This is where we bring value by offering AI as a service. While AI handles routine data-oriented tasks effortlessly, keeping "humans in the loop" ensures process efficiency, cost and time savings of up to 10x, and, most importantly, enables humans to make more informed, strategic decisions.
At the heart of AP operations lies invoice processing, a persistent bottleneck plagued by manual data entry, paper trails, and exception resolution. AI-driven invoice processing solutions are revolutionizing this space by combining computer vision and machine learning to accurately extract and validate data from invoices, regardless of format or language. This eliminates manual data entry, streamlines the process, and significantly reduces processing times.
AI can also learn from historical data, adapting to changing invoice formats and ensuring consistent accuracy over time. This translates to fewer errors, less rework, and improved compliance, contributing to a more efficient and cost-effective AP operation. Additionally, AI can identify critical invoices for prioritized processing, discounts for early payments, and other cost-saving opportunities.
For decades, ERPs have dominated industries, but integrating processes with these systems and other financial platforms has been a persistent challenge. Disparate systems, data silos, and complex integrations have hindered visibility, slowed down processes, and increased the risk of errors.
AI-based solutions bridge this gap by providing seamless, intelligent integrations with ERPs and financial systems. By leveraging natural language processing and machine learning, AI can accurately map and translate data between different platforms, ensuring a smooth flow of information and eliminating the need for manual data entry or middleware.
These intelligent integrations not only streamline processes but also provide real-time visibility into financial data, enabling better decision-making and improved cash flow management. With AI-powered integrations, organizations can finally leverage the full potential of their ERP and financial systems, driving greater efficiency and control over their operations.
The 3-way matching process – comparing purchase orders, invoices, and goods receipt documents – has long been a labor-intensive and error-prone task for procurement and AP teams. Manual matching and exception resolution can lead to delays, overpayments, and compliance issues.
AI-based solutions are revolutionizing 3-way matching by automating the entire process. By leveraging computer vision and machine learning algorithms, these systems can accurately match and validate data across multiple document types, identifying and resolving exceptions with minimal human intervention.
Beyond invoice processing and 3-way matching, AI is transforming the entire purchasing workflow, from creating requests and approvals to reconciliation and payment processing. Traditional workflows have been plagued by manual handoffs, bottlenecks, and lack of visibility, leading to delays, errors, and frustration.
AI-powered workflow automation solutions can intelligently route documents through predefined approval paths, automatically code and categorize expenses, and trigger payments based on predefined rules and conditions. This level of automation not only accelerates the entire process but also ensures consistency, reduces errors, and improves compliance.
At Jiffi, we understand that these processes are costly, time-consuming, and challenging to automate, with accuracy levels impacting a company's bottom line. That's why we believe in AI as a service with humans in the loop. Our technology can reduce processing time by 50% and overall operating costs by 30% while maintaining 99% accuracy levels.
We enable companies to make better cost decisions by providing data and time for strategic decision-making. Interested in learning more? Email me at neel@jiffi.ai
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