Why AI Is Becoming the ‘Pacemaker’ of Company Finances

Company finances are the hidden, beating heart of a business. Suppliers and workers don’t see the behind-the-scenes details of how they get paid, just that the money flows into their bank accounts (or, increasingly, digital wallets).

But as enterprises increasingly adopt artificial intelligence (AI) to help them manage their financial operations, it’s turning the rapidly evolving technology into the equivalent of a corporate pacemaker, automating and regulating the smooth flow of billions of dollars in disbursements.

In the process, AI is becoming a profit center that helps businesses streamline their payment processes, ensure disbursements flow on time — and in the right amount — and better manage their capital.

A forthcoming report titled “Smart Spending: How AI is Transforming Financial Decision Making,” a collaboration between PYMNTS Intelligence and Coupa, finds that more than eight in 10 CFOs at large companies are either already using AI or considering adopting it for a core financial function: accounts payable, or the process by which companies pay their suppliers, vendors and contractors.

The trend is particularly pronounced among the biggest enterprises, with 75% of companies earning more than $10 billion annually having already blended AI into their payment processes. Imagine payment processes flowing seamlessly, expenditures laid bare with new clarity and operational efficiency improving — just like an elite athlete with a pacemaker.

What exactly does AI do in the realm of accounts payable?

For one, it can assist in managing payment terms and optimizing a company’s working capital. Those improvements in turn can fuel enhanced visibility into a balance sheet and smarter spending decisions. More than two in three enterprise CFOs are willing to invest in AI solutions that provide real-time visibility into expenditures, a sign of the fundamental shift that AI is driving in financial management.

The report, which publishes on Friday (April 11), shows how CFOs increasingly recognize the power of AI not just to streamline one of their most important and routine functions but also to boost their margins.

But the path to integrating AI into an existing accounts payable system is notoriously bumpy.

Nearly two-thirds of CFOs report difficulties in making the different systems work together seamlessly. Another hurdle is the lack of customization offered by some AI tools, making it hard for companies to tailor the technology to their specific needs.

For service-based businesses, high upfront implementation costs can also be a major concern. Additionally, companies with complex operations or those spanning multiple regions may find it challenging to implement AI due to varying local regulations. In some instances, particularly in the technology sector, there are concerns about whether AI-generated results are always consistent or replicable, which can affect trust in automated decision-making. Call it AI’s heart arrhythmia.

Despite these challenges, the demand for AI solutions in financial management is growing.

CFOs are increasingly willing to invest in AI tools that offer real-time visibility into expenditures, with 68% indicating a willingness to pay for this capability. There is also significant interest in AI that can support vendor negotiations, optimize budgets, detect fraud and provide predictive analytics. The report details how this willingness to invest in AI reflects a growing recognition of the technology’s potential to transform financial operations and create a new competitive edge.

•   AI is being widely adopted in accounts payable by large companies to automate processes and improve efficiency

•   Companies are experiencing tangible benefits from AI adoption including better visibility into spending, reduced payment errors and improved vendor relationships.

•   Integrating AI into existing financial systems can be challenging due to compatibility issues, lack of customization and implementation costs.

• There is a strong and growing demand for AI-powered financial tools that offer real-time spend tracking, budget optimization and predictive analytics, indicating a significant shift toward AI-driven financial management.

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