AI’s Growing Role Across B2B Payments Will Be Impossible to Ignore in 2025

Artificial intelligence (AI), throughout 2024, became an increasingly permanent component of many business processes.

Particularly across the back office and finance and treasury departments, where critical operating functions like accounts payable (AP) and accounts receivable (AR) have long been plagued by manually driven inefficiencies, errors and delays, the question for firms of all sizes is no longer whether to integrate AI into AP/AR processes but how to do so most effectively.

In finance departments, AI-powered tools are tackling everything from invoice processing to fraud detection. For example, optical character recognition (OCR) technology, coupled with AI algorithms, can now scan and interpret invoices with near-perfect accuracy, helping eliminate human errors and accelerating processing times.

Automating other tasks such as invoice data entry, manual routing and reconciliation on the AP side, as well as invoice generation and collection and reporting and analytics on the AR side, helps free up staff to focus on higher-value activities such as analyzing cash flow trends or negotiating with vendors. It can also ultimately reduce human error, in turn helping to minimize costly mistakes while aiding compliance with tax and regulatory requirements.

One of AI’s greatest strengths lies in its scalability. Whether a company processes hundreds, thousands, or millions of transactions per month, AI systems can adapt to handle the workload without requiring a significant additional investment. This scalability can be particularly valuable for businesses experiencing rapid growth or seasonal fluctuations in transaction volumes.

Of course, there’s a long road ahead for adoption to reach a tipping point. The PYMNTS Intelligence report “Getting Paid: Digital Payments for Improving Cash Flow and Customer Experience” found that 75% of companies still use paper checks.

Read more: Into the Nitty-Gritty: How, Why, and Where Automation Optimizes B2B Payments

Overcoming Implementation Challenges

Despite 2024’s challenges, many business leaders are predicting a brighter 2025, in large part due to a growing embrace of digital innovations like AI that enable greater analytics and more targeted operational strategies.

The integration of AI into AP and AR functions goes beyond operational efficiency; it represents a strategic shift in how businesses approach finance. By automating routine tasks, AI allows finance teams to play a more proactive role in driving business growth. For example, the insights generated by AI tools can inform budgeting decisions, identify cost-saving opportunities and even shape long-term financial strategies.

Additionally, AI’s ability to enhance accuracy and compliance is increasingly valuable in a regulatory landscape that grows more complex by the day. From adhering to tax laws to managing international transactions, AI systems ensure that businesses remain compliant while minimizing administrative burdens.

While the benefits of AI are clear, its implementation is not without challenges. Many businesses face hurdles such as legacy systems, data silos, and resistance to change from employees. To overcome these obstacles, companies must invest in change management initiatives and ensure that employees are trained to work alongside AI tools effectively.

Data quality is another critical factor. AI systems rely on accurate, well-structured data to function optimally. Businesses must prioritize data cleansing and standardization to ensure that their AI tools deliver reliable insights and recommendations.

Read more: 5 Ways 2024 Kicked Off a New Era for CFOs and Treasury Pros

A Permanent Fixture in Business Processes

As businesses continue to navigate economic uncertainty and increasing competition, the adoption of AI in back-office operations is expected to accelerate.

According to a PYMNTS Intelligence report, “Most CFOs See Limited ROI From GenAI, but Boost Its Investment,” 75% of CFOs plan to increase their AI investment.

After talking to dozens of senior payments industry executives for PYMNTS’ B2B Payments: Outlook 2030 event, we heard loud and clear that CFOs, treasurers and finance teams are leveraging AI to revolutionize the way their businesses manage cash flow, automate operations, combat fraud and enhance customer experiences. The industry executives PYMNTS spoke to all agreed on one thing: Finance leaders can move beyond traditional cost savings and extract more value from payments as an engine for growth.

In the context of AP and AR, AI’s ability to deliver tangible benefits — from cost savings and improved cash flow to enhanced customer relationships — makes it a critical lever for success. Companies that fail to embrace these advancements risk falling behind their more agile and forward-thinking competitors.

After all, as PYMNTS Intelligence revealed in “60 CFOs Can’t Be Wrong … AI Can Help Accounts Payable,” well, those 60 CFOs can’t be wrong. AI can, and is, helping AP and AR modernize for the 21st century.

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