The Institute of Financial Operations and Leadership Publishes Accounts Payable Automation Trends 2024 Research

Now in its fifth consecutive year, the IFOL annual flagship research study on Accounts Payable Automation Trends is supported by SAP Concur. This comprehensive report delves into the evolving landscape of accounts payable (AP) automation, capturing insights and trends from a global community of AP and finance professionals and leaders.

The Evolution of AP Automation

As the business world increasingly gravitates towards digital solutions, 52% of AP teams still spend over 10 hours a week processing invoices, and 60% manually key invoices into their accounting software.

With these recent findings, understanding the time and cost-saving benefits of AI in accounts payable processes is more critical than ever.

Other insights in this report include:

• The number of hours a week AP teams spend processing invoices.
• The key challenges caused by manual processing.
• The current state of AP automation.
• AP automation roadmap timelines.
• How many finance teams currently use AI technologies.

Sam Hitchen-Rae, COO at IFOL comments:

“The research has consistently aimed to illuminate the trends and shifts within accounts payable automation, offering invaluable insights to professionals seeking to streamline their processes and embrace new technologies. This year, the spotlight is on the transformative power of artificial intelligence (AI) in AP automation.”

Key Findings from the 2024 Research

The “Accounts Payable Automation Trends 2024” report reveals several crucial insights that can guide finance teams in their journey toward full AP automation.

1. Efficiency Gains Through Automation

Key Data Revealed: Where AP teams have gained efficiencies through automation

Over the past three years, organizations that have embraced AP automation have reported significant efficiency gains. The data reveals that automated AP processes can reduce processing times considerably, leading to substantial cost savings and improved accuracy. These efficiency improvements are a testament to the power of technology in transforming traditional finance operations.

2. The Partial Automation Dilemma

Key Data Revealed: Percentage of AP teams who are partially automated.

One of the standout findings from this year’s report is the issue of partial automation. While many organizations have implemented some level of AP automation, a significant number still rely on manual processes for certain tasks. This hybrid approach often hinders the full transformation potential of AP departments.

The research suggests that partial automation can create bottlenecks and inconsistencies, ultimately limiting the benefits that full automation could provide.

3. Breaking Down the AI Technology Barrier

Key Data Revealed: Adoption rates of AI in AP automation

AI is increasingly becoming a game-changer in the AP automation landscape. However, there are still barriers to its widespread adoption. The study identifies key challenges, such as integration complexities, initial costs, and a general lack of understanding of AI capabilities.

Despite these hurdles, organizations that have successfully integrated AI into their AP processes report enhanced decision-making, improved fraud detection, and more streamlined operations.

The Role of AI in Shaping the Future of AP

The “Accounts Payable Automation Trends 2024” report places a strong emphasis on how AI is reshaping the AP landscape. AI technologies, including machine learning, natural language processing, and predictive analytics, are revolutionizing the way AP departments operate. These technologies enable more accurate data extraction, better anomaly detection, and more efficient workflow management.

The research highlights that AI-driven AP automation not only enhances operational efficiency but also empowers AP professionals to focus on more strategic tasks. This shift from manual, repetitive work to more value-added activities is crucial for the future of finance functions.

The “Accounts Payable Automation Trends 2024” report is a must-read for AP and finance professionals seeking to stay ahead of the curve. It offers a detailed analysis of current trends, challenges, and opportunities in AP automation, with a particular focus on the transformative impact of AI. As we move further into the digital age, understanding and leveraging these insights will be critical for finance teams aiming to optimize their AP processes and achieve operational excellence.
For more information on the study please contact [email protected] or download the full report.