In their report, "Top Priorities for Finance Leaders 2024", Gartner emphasizes the critical need for AI-driven automation to remain competitive in the years ahead.
While many CFOs have ambitious goals to automate the finance function, progress has been slow.
Companies that learn to leverage AI and hyperautomation within the finance department will gain a competitive edge that may be hard for late adopters to catch up with (Gartner).
A fully automated finance function not only frees up time for more value-adding tasks but also opens the door to more efficient processes across the organization. According to McKinsey, businesses that invest in intelligent automation can boost productivity by up to 20% ("Harnessing Automation for a Future That Works").
Gartner points out that the lack of progress is often due to the wrong automation tools, not a lack of ambition. Not all solutions are the same, even those claiming to use AI and machine learning.
READ MORE: AP automation - key terms you need to know.
It’s essential that AI solutions provide accurate data from incoming invoices without the need for manual validation. Many vendors offer data digitization, but few can achieve 100% accuracy. At Semine, we’ve developed machine learning-based invoice automation, ensuring the system learns to execute tasks perfectly each time. Additionally, the results undergo an automated validation process, ensuring that all relevant data is automatically transferred into the ERP system.
This solution allows the finance department to work differently: processes become less dependent on individuals, reminders and late fees can be replaced with early payment discounts, and the company gains a more up-to-date overview of liquidity and costs. According to Deloitte, using AI in the finance function can reduce manual tasks by up to 60%, freeing resources for more strategic initiatives.
READ MORE: This is how easily the focus can be shifted from punching to analysis
However, there’s another crucial factor: the AI must be able to extract as much information from the invoice as possible. Basic data like the total amount, account number, and invoice number (KID) aren’t enough—the true value comes when the system can capture details such as delivery addresses, project references, and PO numbers. The invoice must also be split at the line-item level, so it can distinguish between various categories of purchases, such as goods and services, and accurately apply VAT coding to each item.
2024 will be a critical year for CFOs looking to unlock the potential of artificial intelligence, hyperautomation, and data-driven insights. According to Gartner, those who implement AI and optimize their finance processes will create substantial value, with positive ripple effects throughout the organization. Companies that fail to invest in this technology risk being left behind in an increasingly digital economy.
In other words: Investing in AI-driven automation and optimizing resources and processes provides a clear competitive advantage.