Data Silos, Meet GenAI: The Next Frontier for CFOs Seeking AP Excellence

CFOs and payments leaders are faced with a challenge. To unlock the true potential of artificial intelligence (AI) in areas like accounts payable (AP), they must rethink how new systems interact with their existing enterprise resource planning (ERP) systems, ensuring that innovation does not come at the expense of operational stability.

Despite decades of innovation, the traditional AP function remains burdened by inefficiencies and manual processes. Many enterprise organizations continue to rely on paper invoices, requiring staff to key in data, track down missing information and correct errors.

“Our industry has been talking about automation for such a long time, yet 84% of the typical AP practitioner’s time is still spent on manual tasks,” Alex Hoffmann, the general manager North America at Edenred Pay, told PYMNTS.

Still, Hoffman believes there’s “never been a more exciting time” for accounts payable. The convergence of AI, ERP integration and new payment methods, such as real-time payments and virtual cards, is creating unprecedented opportunities for finance leaders.

“CFOs have a real chance to elevate AP from a back-office function to a strategic powerhouse,” he said.

Overcoming Challenges of Legacy AP

CFOs must balance innovation with the imperative of maintaining control over financial operations. As things are today, AP teams can often struggle with real-time cash flow and spend insights due to disconnected platforms and check-based payments, which can expose companies to fraud.

“I’m seeing some information with my ERP, some in my accounts receivable system and some in my expense management system. Data silos are a major issue,” Hoffmann said.

At the same time, AP teams face growing pressure from CFOs to optimize costs and drive financial efficiency. The solution tends to end up at automation.

Beyond eliminating manual tasks, automation is reshaping the AP function by enabling smarter decision-making.

Shorter approval cycles improve supplier relationships and strengthen business continuity, while automation allows companies to time payments to maximize cash flow, paying late when beneficial or early to secure discounts. Ultimately, greater visibility into spend patterns is what helps transform AP from a cost center into a revenue-generating function.

“When you automate, you’re going to really eliminate friction,” Hoffmann said. “AP becomes a strategic partner in cash flow optimization.”

AI’s Expanding Role in AP

AI has long played a role in AP, primarily through machine learning-based automation. But generative AI is now redefining what’s possible. The ability to handle unstructured data is where AI’s impact is most profound.

“Some of us in the industry have seen AI being rebranded from machine learning,” Hoffmann said. “But generative AI really takes things to the next level.

“AP is one of the most unstructured data-heavy functions in finance. AI can now capture invoice data with 99.5% accuracy and virtually no manual handling,” he added.

But as finance teams integrate AI, CFOs face a fundamental question: Where should AI reside within the organization?

“Do I want a central AI tool analyzing all systems? Or do I want AI embedded within key financial platforms like AP and ERP?” Hoffmann posed. “The answer isn’t obvious, but it’s a crucial decision for CFOs.”

Read more: From Back Office to Strategic Powerhouse: AP’s Transformation in 2025

“The ERP is the source of truth for transactions. Any system not connected to it is disconnected from reality,” Hoffmann said. “Different systems, data formats and software generations create major barriers. AI can help, but it’s not just about the technology; it’s about having the right AI-powered partner who understands industry-specific complexities.”

Edenred Pay, for example, is leveraging AI to centralize supplier databases and optimize payment terms.

“We know for this vendor, they’ll accept cards for these goods, up to this amount, with these payment terms. That kind of intelligence, when applied across an entire industry, creates massive economies of scale,” Hoffmann said.

Predictive Analytics Unlock Efficiencies

Predictive analytics represent one of AI’s most immediate value drivers for finance teams.

AI helps CFOs fine-tune payment schedules, minimizing disruptions while optimizing liquidity. Predictive analytics are also necessary for flagging anomalies in payment behaviors, helping businesses detect fraud attempts before losses occur.

“With AI-driven forecasting, businesses can optimize working capital, reduce costs and proactively manage supplier risks,” Hoffmann said.

However, real transformation goes beyond turning on AI.

“The challenge is learning how to interpret AI-driven insights and apply them strategically. That’s where the true value lies — moving from cool anecdotes to measurable cost savings,” he said.

As finance leaders navigate the evolving AP landscape, one thing is clear: Automation and AI are no longer futuristic concepts. They are today’s competitive differentiators.

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