Advances in AI, specifically cognitive data capture, can bring document data extraction to a new level of efficiency and efficacy, freeing employees from repetitive low-level work and letting them instead concentrate on added-value activities. In this blog post, we discuss the key benefits of Artificial Intelligence in invoice data capture for the modern AP departments.
Available data entry solutions
Available solutions for invoice processing, such as manual data entry and
Invoice extraction is a complex process and its optimization is a struggle for many companies. Manual data entry is no longer a viable solution due
to increasing labour costs, slow processing times, and high error rates.
Alternatives, such as template-based OCR, solve some of these issues, but
Benefits of AI in invoice extraction
The automation can have a fast, direct and measurable impact on many
processes including not only invoice processing itself but also compliance,
security, relationships with external and internal parties, early-payment
discounts, improved workflow planning, and the reduction of costs
associated with lost and error-ridden documents.
Cognitive data capture greatly reduces the time spent on invoice processing. Automation allows a company to drastically reduce the time of manually processing a single invoice from 3 minutes to 30 seconds. Thus, 6x the number of documents can be processed simultaneously, leaving more time for higher priority tasks.
Moreover, the technology is self-learning and does not require any layout configuration, rules or templates. This saves a great deal of effort in the implementation phase, and with cloud-based technology, roll-out is possible the same day.
Automation leads to more accurate and faster results compared to humans under the same conditions. With the development of AI, which constantly gathers information and self-corrects, it learns to become more efficient and reduces common human errors.
Cognitive data capture is now able to reach up to 98% accuracy. As a result, users can pay more invoices with higher precision and on time. When it comes to invoice automation, the more invoices processed, the more accurate the technology becomes. This ability to continuously self-improve is called ‘data network effect’.
With cognitive data capture it is possible to do the same tasks, but in less time and with reduced errors. This means less double-checking and repeated tasks, leading to higher efficiency and productivity.
Based on our user study, it can result in a
4. Cost reduction
Since there is no need to configure rules or templates (compared to
alternatives like template-based OCR), implementation costs, and subsequently, overall labour and operational costs will decrease significantly.
Average cost to process an invoice:
Manual - $13
Template-based OCR - $4
Cognitive data capture - less than $1
Added with increases in system productivity and a reduction of errors, the actual costs for automation will yield significant returns in a short period of time.
5. Better process management
AI-powered invoice processing helps avoid late payments. By eliminating human error from the process, no invoice will be forgotten. Thus, no penalties for late payments, no frantic phone calls from suppliers, and no rushed invoices.
+20% annual return on investment from
dynamic discounting programs
This all leads to improved relationships with partners and
better financial performance in the long run. Furthermore, AP automation reduces the invoice approval cycle and allows dynamic discounting programs to increase annual return on investment by more than 20%.
With the rise of robots in business, we are just at the dawn of the
automation revolution. The financial services industry is one of the leading sectors
Want to learn more? Download a white paper 5 Benefits of Artificial Intelligence in Invoice Data Capture or sign up today and extract data from up to 300 invoices/month for free!