#United States #AI #Tipalti #Finance Automation #Foster City, California

Tipalti's Global Finance Outlook: Challenges and Opportunities

In a rapidly changing financial landscape, organizations are grappling with escalating complexities and compliance demands. Recently released by Tipalti, a leader in finance automation, The Global Finance Outlook report presents an eye-opening assessment of how finance teams are positioned in the current economy. The study, which surveyed over 2,300 finance professionals across North America and Europe, reveals a stark reality: many finance teams are struggling to keep up with the speed and intricacies of global business.

Increasing Workloads and Outdated Systems

The report indicates that 83% of finance teams report an increase in workload due to factors such as global expansion, tariffs, and evolving regulations that significantly outpace their existing systems. This overwhelming influx of tasks has resulted in a significant loss of productivity—an average of 11 hours per week, totaling nearly 72 working days annually lost to manual accounts payable (AP) tasks.

Manish Vrishaketu, Tipalti's Chief Customer and Operating Officer, emphasized, "The increasing complexity of global business is a profound challenge for finance professionals still bound by manual AP. These outdated systems create compliance bottlenecks, operational blind spots, and burnout at a time when agility matters most." This statement underlines the pressing need for modern solutions to replace outdated practices.

Global Expansion: A Double Edged Sword

As companies seek to grow on an international scale, the strain on finance teams is palpable. A staggering 35% of businesses plan to expand globally within the next two years, while 55% are already dedicating more resources to oversee their international operations than previously. Yet, operational readiness fails to match this growth. Approximately 56% of finance professionals admit their current AP systems aren't equipped to support the demands of long-term growth without extensive revisions. Alarmingly, only 25% feel fully prepared to handle the intricacies of finance during periods of international expansion.

Moreover, external factors like tariffs complicate the landscape for finance leaders. Close to 59% of finance leaders acknowledge that U.S.-related tariffs are hindering their expansion plans, with 61% citing investment slowdowns driven by tariff uncertainties. North American companies report being particularly affected, bearing a disproportionate burden compared to their European counterparts concerning financial planning and compliance stressors.

Rising Compliance and Fraud Concerns

The complexity of compliance and fraud prevention is on the rise, further complicating global operations. Half of the surveyed finance professionals lack a clear roadmap for managing compliance issues, exposing their organizations to the risk of regulatory setbacks that can incur hefty penalties. The report highlights a troubling reality, where 43% of finance teams note an increase in compliance issues within the past year, while 60% express heightened concerns about fraud in the AP process. To combat these threats, many organizations are turning to quick fixes, with 51% investing in new technologies to enhance compliance and control.

However, these reactive measures may only act as stop-gap solutions without comprehensive automation. The data suggests that achieving true efficiency and security in operations requires a more stable and scalable approach to finance—one that AI integration can uniquely support.

The Role of Automation and AI

There's a prevailing consensus among finance professionals regarding the importance of automation and AI at this juncture. A remarkable 80% of finance leaders believe automation offers more than just operational efficiency; it drives long-term business aspirations. Nonetheless, only 7% of organizations have fully automated their AP operations to date. Hesitation in embracing automation can typically be attributed to concerns over data security, integration challenges, and doubts about accuracy.

The report captures a significant shift toward automation, as 68% of finance teams are reassessing their AP management approaches, with nearly 46% engaging in pilot programs or implementation of AI tools. Early adopters of automation have also reported tangible benefits: improved accuracy, expedited approvals, and enhanced controls lead to creating space for finance teams to innovate rather than solely manage routine tasks.

Investing in an AI-Driven Future

When finance leaders were asked about their future investment priorities, AI emerged as the foremost area for development within AP processes, with 50% indicating plans to invest in AI technologies. The widespread acknowledgment of AI as a catalyst for business transformation emphasizes the shift in perspective—seeing AI as integral for achieving operational effectiveness, rather than merely an enhancement for back-end processes.

To further their efforts in compliance and risk management, finance leaders also plan to allocate resources towards fraud detection technologies (44%) and bolstering data security and privacy measures (44%). Not only do these initiatives focus on improving efficiency, but they can also foster better employee retention within finance teams—73% of leaders observed improved retention rates post-AI tool implementation.

Conclusion: The Future of Finance with Tipalti

Tipalti’s AI-powered platform seamlessly integrates accounts payable, procurement, and other financial functions, enabling organizations to navigate the complexities of global business with confidence. Richard Vrishaketu emphasizes the necessity for finance teams to transform their operational approaches, reiterating that the future of finance lies within automation and AI. Companies leveraging these tools are not just surviving but thriving in today’s challenging environment.

For a comprehensive exploration of the findings from The Global Finance Outlook, visit the Tipalti website.