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The AI-Driven Transformation of Accounts Receivable

In a world where speed and efficiency dictate financial success, a new report reveals that artificial intelligence (AI) is fundamentally reshaping accounts receivable (AR) processes. A recent study by Billtrust, a leader in B2B accounts receivable software, highlights how AI integration is no longer an optional enhancement but a necessity for enterprises aiming to thrive under economic volatility.

The independent research, conducted by Wakefield Research, surveyed 500 finance leaders from North American companies with revenues exceeding $250 million. The findings paint a compelling picture of AI's impact on financial operations. A staggering 99% of enterprises employing AI technologies in their AR functions reported a notable decline in their average days sales outstanding (DSO). Moreover, 75% of these organizations witnessed a reduction of six days or more in their payment cycles.

Beyond simply accelerating payments, the integration of AI technologies has facilitated businesses in unlocking liquidity, allowing them to navigate uncertain financial waters with greater confidence. Additionally, the report presents several key takeaways:

• - Operational Scaling: 82% of participants noted an ability to scale operations by 11% or more without the need to increase staff numbers.
• - Predictable Cash Flows: 43% acknowledged a marked improvement in cash flow predictability and stability.
• - Criticality of AI: 90% expressed concerns that their AR processes would struggle to scale effectively without substantial AI support.

Becky Carr, CMO of Billtrust, commented on these findings, stating, "As AI technology becomes embedded in AR workflows, it not only assists finance teams in unlocking liquidity but also enhances their ability to mitigate risks and prioritize strategic initiatives. The productivity benefits are too significant to overlook, making AI an indispensable asset in scaling AR operations."

The report illustrates how AI is applied in various critical functions, automating repetitive tasks traditionally performed by staff. Top applications include anomaly detection, real-time credit assessment, and predictive cash flow forecasting. However, the research also uncovers certain obstacles that organizations must address to fully capitalize on AI's potential.

Despite the widespread interest—94% of companies reported using or trialing AI within their AR departments—many are impeded by challenges such as:

• - Difficulty in integrating AI into existing systems.
• - Outdated technological frameworks.
• - Insufficient in-house expertise concerning AI utilization.

Interestingly, 89% of finance leaders believe their organizations will not maximize AI's advantages until they foster a cultural shift among employees. This indicates the importance of embracing AI mindsets through training programs and partnerships with knowledgeable service providers that can navigate the complexities of AI implementation.

Furthermore, the study captured a diverse set of attitudes toward AI's role in AR:

• - 29% consider AI essential but advocate for safeguards.
• - 40% support its extensive use within defined constraints.
• - 26% favor its utilization only in specific situations under human supervision.
• - A mere 4% oppose AI's presence in AR operations altogether.

Despite these varying viewpoints, optimism about AI investment remains strong, especially among active users who are more likely to expand their AI budgets in the coming year.

In conclusion, the survey indicates that successful integration of AI within AR is not just an operational shift; it represents a fundamental change in how finance teams operate. By leveraging AI technologies, companies are positioned not only to keep pace with industry standards but to set new benchmarks for operational excellence. As organizations look to the future, the ability to adapt and evolve with AI will be pivotal in meeting the demands of an ever-changing economic landscape.

This study underscores the value that AI can bring to accounts receivable functions and the necessity for employee engagement and training in this transformative journey. For those interested in exploring the full report, additional insights and information can be found here.