AI Gives Accounts Payable a Seat at the Strategy Table

The business landscape moves fast, and that can leave reactive businesses a step behind their more proactive competitors.

But today’s increasingly digital landscape is full of opportunity for firms looking to transition their legacy back-office processes, such as accounts payable (AP), from passive operations to value creation levers.

The latest PYMNTS Intelligence data from the April 2025 edition of the CAIO Report, a collaboration with Coupa, reveals that more than 1 in 3 (38%) U.S. chief financial officers (CFOs) at large enterprises are actively using artificial intelligence (AI) in their AP programs. An additional 43% are interested in integrating AI across AP but have not yet done so.

Enterprises with more than $10 billion in annual revenue exhibit the highest AI adoption rates, with 75% classified as adopters. So, what do they know that their smaller peers don’t?

Read the report: Smart Spending: How AI Is Transforming Financial Decision Making

Traditionally, the AP process has been reactive. An invoice arrives, it is reviewed, entered into an enterprise resource planning (ERP) system, matched with a purchase order, and scheduled for payment. It is a labor-intensive process prone to human error and delays.

But as artificial intelligence advances at an unprecedented pace, AP is undergoing a transformation. No longer a reactive cost center, AP is emerging as a proactive, strategic force within the enterprise. There’s a compounding effect happening, too. As AP becomes more strategic, its organizational profile is rising. Finance leaders are recognizing that AP is not just about settling bills but about enabling agility and financial resilience.

By freeing AP teams from the manual burden of keying data and chasing approvals, AI can also allow finance professionals to focus on higher-value activities: analyzing spending patterns, negotiating better vendor terms and proactively managing cash flow.

After all, cash is king in any business, and AP is increasingly seen as a lever to optimize working capital. AI-driven AP platforms integrate seamlessly with ERP systems to provide real-time dashboards on payable obligations and cash positions. Predictive analytics models can forecast payment trends, helping finance leaders make informed choices about payment timing, borrowing needs and liquidity strategies.

The PYMNTS Intelligence report found that 68% of CFOs are willing to invest in AI solutions that offer real-time expenditure insights. This enhanced visibility allows organizations to anticipate financial challenges and adjust strategies proactively.

AI can also help with facilitating supplier segmentation by identifying which vendors are most critical or offer the most advantageous terms, helping prioritize payments strategically.

AI systems also help firms to detect duplicate invoices, flag anomalies and spot potential fraud. These proactive capabilities not only improve compliance and reduce risk but also empower AP to act as a control tower for enterprise spending.

Despite the benefits, the report finds that integrating AI into existing systems can present challenges. Nearly two-thirds of CFOs report difficulties with integration, and 44% cite a lack of customization options as a significant hurdle. Service enterprises, in particular, report high implementation costs (89%) and integration issues (56%), while goods enterprises struggle with adapting AI tools to their specific needs.

But as AI technology continues to evolve, its role in AP is only expected to expand further. Generative AI, for instance, is poised to streamline and automate the invoice-to-pay cycle, reducing manual intervention and improving accuracy.

By automating routine tasks, enhancing visibility, and improving fraud prevention, AI enables organizations to optimize their financial operations and make more informed decisions. While challenges in integration and customization remain, the potential benefits of AI in AP can be significant.

In the race to digitize and optimize, accounts payable is no longer the forgotten function. With AI at the helm, it’s fast becoming a strategic command center for the modern enterprise.

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