The Accounts Payable (AP) process is critical for managing payments to suppliers and vendors and is equally prone to drawbacks due to manual intervention. From creating purchase orders (PO) to generating goods receipt notes (GRN) and matching them, the AP process involves crucial steps. Managing all this manually is bound to become cumbersome, given the involvement of multiple stakeholders and departments in handling invoices in different formats—leading to complexities and challenges in the process. To address these issues and enhance efficiency, accuracy, and vendor relations, enterprises are adopting Cognitive Process Automation to automate their Accounts Payable. This strategic move involves implementing AP automation solutions to streamline workflows, automate manual tasks, and gain valuable data insights, enabling data-driven decision-making and fostering business growth in the rapidly evolving finance landscape.

1. From Manual to Automated: All About
Accounts Payable with Automation
In the business realm, the rigidity mechanism represents a staunch adherence to traditional manual
methods, while the conflict mechanism thrives amidst the chaos caused by human errors. These
mechanisms, if strongly in place in an enterprise, converge into inefficiency and stagnation. Rigidity
prevents innovation and change, while conflict prevents cooperation and collaboration.
The Accounts Payable (AP) process, which plays a crucial role in managing payments to suppliers and
vendors, is highly susceptible to the drawbacks associated with manual human intervention. From the
creation of a purchase order (PO) that outlines the order details, such as quantity, price, and delivery
date to generating a goods receipt note (GRN) to confirm their arrival and matching the PO and the GRN
before the payment is finally processed and released—the AP process involves critical steps.
The process tends to become extremely cumbersome, and the traditional AP process only adds to it
since businesses rely on multiple stakeholders and departments to capture invoice information and
process payments. Invoices from various suppliers arrive in different formats, including paper
documents, email attachments, or vendor portals. Data within these invoices is often unstructured,
creating complexities in processing. With manual handling, businesses face challenges related to timing,
cost, and data extraction.
Unraveling the Challenges in the Accounts Payable Process Without AI-Powered Automation
In the absence of AI in Accounts Payable, teams encounter a range of challenges that impede their
efficiency and expose businesses to potential risks. Let's take a look at some of the common hurdles
faced by the Accounts Payable teams without the right AI-led automation solutions in place.
• Fraudulent Signatures: Without automation, AP teams may struggle to detect forged signatures
or verify the authenticity of documents, leaving room for potential fraud
• Lack of Payment History: Manual processes can make it challenging to maintain a
comprehensive payment history, hindering tracking and analysis of past transactions
• Loss of Data and Cheques: The absence of automated systems can lead to the misplacement of
important data and physical cheques, causing delays and potential financial risks

2. • Increased Workload Leading to Reduced Efficiency: Manual handling of invoices and payments
can overwhelm AP teams, reducing their efficiency and productivity
• Difficulty in Payments and Storing Invoices: Without automation, processing payments and
organizing invoice records can become excessively cumbersome and error-prone
• Having Little or No Information Regarding the Company’s Financial Position: Manual processes
lack real-time data insights to a great extent, limiting AP teams' ability to access up-to-date
financial information
Why Should Enterprises Adopt Automation for Their Accounts Payable Process?
• Improved Efficiency and Accuracy: The power of Intelligent Document Processing (IDP) and
Cognitive Process Automation (CPA) can be harnessed to automate data extraction, reduce
manual entry errors, and enhance accuracy through advanced Natural Language Processing
(NLP) algorithms.
• Faster Processing and Reduced Cycle Times: Automated invoice matching and validation enable
quicker approvals and minimized processing times, all thanks to NLP-driven intelligent
automation, which transforms accounts payable workflows with seamless precision.
• Cost Savings and Reduced Errors: Organizations can reduce operational costs and minimize the
risk of human errors by eliminating manual tasks and optimizing financial processes with the
help of NLP-enhanced cognitive automation.
• Enhanced Visibility and Control: Real-time visibility into AP operations can be easily gained
through AI co-workers for Accounts Payable automation. They seamlessly integrate electronic
approvals and workflows, thereby empowering better financial decision-making and enhanced
control over payment processes, powered by NLP insights.
• Streamlined Workflows: IDP's seamless integration with accounting systems and NLP-driven
data synchronization ensures efficient, end-to-end AP workflows, streamlining processes for
maximum productivity.
• Reporting and Analytics Capabilities: Valuable insights into AP performance are gained through
powerful reporting and analytics tools and accounts payable invoice automation software,
enabling data-driven decision-making and process optimization.

3. A Real-Life Case Study of AI-driven Accounts Payable Automation, Enabled and Executed by E42
In the ever-evolving landscape of the automotive manufacturing industry, a prominent enterprise
($13.7 Billion) faced the challenge of managing 100,000 monthly invoices from 600 vendors. Seeking a
transformative solution, they partnered with E42 to implement an advanced Accounts Payable
automation system. Thanks to an AI co-worker built on E42, a remarkable 96% accuracy in data
extraction was achieved. The AI Accounts Payable Executive efficiently handled digital signature
validation, GL code mapping, and supplier communication, streamlining the entire AP process. The
results were outstanding, saving 100 person-days per month and accelerating productivity.
Implementing an Optimized Automated AP Process—A Detailed Guide
• Assess Current AP Processes and Set Clear Objectives: Before embracing AP automation, it’s
important to conduct a comprehensive evaluation of the existing AP processes, such as
identifying bottlenecks and pain points in invoice processing including manual data entry,
verification delays, and more. By clearly establishing objectives like reducing processing time,
enhancing data accuracy, and streamlining approvals, businesses can maximize the benefits of
automation and improve their AP efficiency.
• Choose the Right AP Automation Tools: Choosing the right AP automation tools involves
selecting solutions that cater specifically to accounts payable workflows. Enterprises should
prioritize features such as intelligent document processing (IDP) with optical character
recognition (OCR) and natural language processing (NLP) capabilities for accurate data
extraction from invoices and receipts. It is essential to look for solutions that seamlessly
integrate with existing AP systems and offer user-friendly interfaces for easy adoption by the
finance team.
• Leverage Data Analytics for AP Performance: To leverage data analytics for AP performance,
organizations can implement advanced reporting mechanisms providing real-time visibility into
AP performance metrics. By utilizing data analytics, enterprises can identify trends and
anomalies in invoice processing, enabling proactive risk management and strategic decision-
making. Optimizing cash flow management and identifying cost-saving opportunities in AP
processes become possible by harnessing the power of data analytics.
• Ensure Robust Data Security in AP Automation: When implementing AP automation, ensuring
robust data security is crucial, given the confidentiality of financial data. Prioritizing data security
and compliance involves implementing strong encryption and access controls to protect
sensitive AP information. Enterprises should carefully pick automation tools that comply with
security protocols and regulations like GDPR and SOC2 to safeguard data integrity and enable
regular auditing and monitoring of the AP automation system to identify potential
vulnerabilities.

4. • Streamline AP and AR with Intelligent Document Processing: Streamlining AP and AR
workflows can be achieved by embracing Intelligent Document Processing (IDP) with NLP
capabilities. This technology enables automated data capture and validation, eliminating manual
errors and accelerating invoice processing. Seamlessly integrating payment gateways ensures
swift and accurate transaction processing, reducing payment delays and enhancing vendor
relationships.
• Follow a Structured Implementation Process: Approaching Accounts Payable automation
implementation systematically includes conducting a thorough assessment of AP workflows and
identifying tasks suitable for automation. Choosing an AP automation solution that aligns with
specific objectives and integrates seamlessly with existing AP systems is essential. Customizing
the system to fit unique AP requirements and providing comprehensive training to the finance
team ensures smooth adoption.
• Best Practices: Incorporating best practices involves involving stakeholders throughout the AP
automation journey to gain support and drive successful implementation. Maintaining data
accuracy and quality ensures reliable automated processes. Rigorous testing and validation help
identify and address potential issues, while continuous monitoring and optimization of the AP
automation system adapt to evolving business needs, ensuring its long-term efficiency and
effectiveness.
In conclusion, adopting Cognitive Process Automation to automate Accounts Payable emerges as a
critical strategic move for enterprises aiming to enhance efficiency, accuracy, and competitiveness in
their financial operations. Through the implementation of Accounts Payable automation solutions,
organizations can elevate their financial processes by automating manual tasks, gaining valuable data
insights, and streamlining workflows. This data-driven approach empowers informed decision-making
and fosters business growth amidst the dynamic landscape of modern finance.
Streamline Your Finance Operations with E42
E42 is a no-code platform to build AI co-workers that are capable of automating various business
processes with high speed and accuracy. Tailored for the finance domain, our AI co-workers excel in
handling crucial tasks like Accounts Payable, Accounts Receivable, and financial reporting. Operating at
an accelerated rate, these AI co-workers offer end-to-end process automation, benefiting both the
finance team and the overall business. To embrace the future of finance with enterprise automation, get
in touch with us at interact@e42.ai.