The Future of Finance is Here: How AI is Shaping ERP and Invoice Automation

Takeaways:

• AI-driven solutions reduce time, effort, and risk of errors inAccounts Payable Coding.
• Enhanced compliance and accuracy with AI help CFOs make better-informeddecisions.
• Finance platforms must prioritize AI integration to staycompetitive and unlock revenue potential.
• Enterprises are willing to pay a premium price for self-learning technologies.

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We've asked our CEO, Frank, to give his view on how AI will impactERP and Invoice Automation platforms in the future. Here are his thoughts:

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Reflecting on my 2.5-year journey as CEO of Kaunt, we've had the privilege of speaking with hundreds of CFOs across eight different sectors and various financial systems which are eager to embrace intelligent, self-learning technologies.  

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We've learned from our interviews that Accounts Payable Coding is a cumbersome, time-consuming task, taking an average of 8 minutes per task, with up to 20% of codes containing errors. Moreover, CFOs find it challenging to engage young, ambitious employees in manual work; hence they are willing to pay a premium price for intelligent and self-learning technology to handle these tasks efficiently and accurately. 💼

Amid this rapidly changing landscape, the rising global invoice volume presents a pressing issue for businesses. According to a 2020 report by Billentis, over 550 billion invoices were processed worldwide that year, with a compound annual growth rate (CAGR) of 3-5% expected through 2025. As the number of invoices grows, managing Accounts Payable Coding becomes increasingly complex and time-consuming. 📈

The global market size for accounts payable automation, which encompasses invoice automation, is projected to reach $3.1 billion by 2025, growing at a CAGR of 11% during the forecast period, according to a report by MarketsandMarkets. With the growing invoice volumes, countless hours andresources are spent on a task prone to errors and complications. Automating and streamlining Accounts Payable Coding with AI-driven solutions can significantly reduce the time, effort, and risk of errors associated with this critical process. 🤖

Another crucial aspect to consider when embracing AI-driven solutions in the finance function is the potential for increased compliance and accuracy. Human errors in manual coding and data entry can lead to costly compliance issues and discrepancies in financial records. According to a report by IOFM (Institute of Finance & Management), 62% of organizations surveyed experienced duplicate or overpayments due to human error in accounts payable. These errors can result in both financial loss and compliance issues. 🔍

By leveraging self-learning AI technology, businesses can significantly improve the accuracy of their coding and data entries, reducing the risk of non-compliance and minimizing the time spent on rectifying errors.This enhanced level of compliance and accuracy not only streamlines the finance function but also provides CFOs with greater confidence in the reliability of their financial data. As a result, CFOs can make better-informed decisions, identify potential risks, and effectively allocate resources to address strategic priorities, ultimately driving the success of their organization. 🎯

As the demands from the CFO increase and technology evolves, ERP and Finance Automation platforms must up their game. Finance platforms that rely on manual processes or rules-based automation and don't offer embedded AI in their B2B offerings risk losing business to competitors. Customers will inevitably churn, seeking platforms that can provide innovative technology. To stay ahead of the curve, it's crucial for platforms to prioritize AI integration to retain existing customers and attract new business opportunities. 💡

By embedding AI as a native technology, platforms can unlock significant revenue potential and ensure their position as industry leaders in the rapidly evolving business landscape. The finance stack is on the verge of significant disruption, with AI leading the charge. We're experiencing an actual Kodak moment. We'll see new players emerge and seize marketleadership, while some established players may struggle to adapt and ultimately vanish. 🌪️

AI will play a crucial role in transforming finance departments beyond Accounts Payable Automation. Its impact will be felt across various disciplines, including financial planning, cash management, expense management, accounts receivable, and financial reporting, driving efficiency and innovation in each area.

As we look ahead to the next decade, it's clear that AI will dramatically transform the finance function, bringing unparalleled efficiency, accuracy, and innovation to the industry. This exciting transformation promises to reshape how businesses manage financial operations and adapt to the ever-evolving market landscape. 🌐

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I am beyond thrilled to be a part of this groundbreaking transformation and contribute to shaping the future of finance. I am proud, too, to spend my every day in a company at the forefront of innovation, offering state-of-the-art AI solutions. It's thrilling to witness the growing market demand for AI, and we are committed to ensuring Kaunt remains a key player in this rapidly evolving landscape. 🏆