AI in finance: Key benefits and real-world examples
Artificial intelligence is transforming finance operations. Is your business ready?
Evolutionary technologies like generative AI, machine learning (ML), natural language processing (NLP), and neural networks are changing how organizations manage money. AI automates repetitive manual processes, enables informed decision-making, and improves operational efficiency. By harnessing its power, your organization can save time and money, gain visibility and control over financial processes, and prevent errors and fraud.
In this article, we explore real-world examples of how finance teams use AI solutions. We’ll break out how AI is changing finance, how it helps companies overcome their financial challenges, and how AI can benefit your business.
Let’s get started.
What is artificial intelligence in finance?
AI in finance is the use of computers and software that mimic human intelligence and problem-solving abilities to automate financial tasks. It enables organizations to streamline and optimize finance processes like document processing, data entry, approval routing, and data analytics.
AI-powered financial automation solutions leverage machine learning (ML), natural language processing (NLP), and other technologies to learn and improve without being programmed.
What is machine learning?
Machine learning is a subset of artificial intelligence that learns from data patterns and makes decisions based on what it learns. It also learns as it works to constantly improve the accuracy of its decision-making. For example, Billy the Bot, Stampli’s AI, learns your cost accounting rules and P2P processes to capture and GL code invoices.
What is natural language processing?
Natural language processing, or NLP, lets an AI understand and interpret text and speech. For example, a financial automation platform can use NLP to extract and process information from documents like invoices, purchase orders, or receipts and share it with an ERP or accounting system.
Benefits of AI in financial automation
According to finance leaders surveyed by Stampli, here are the top five benefits of leveraging AI and ML in financial automation:
- Improved accuracy: AI and ML tools eliminate error-prone processes, detect anomalies, and provide accurate data and analytics.
- Improved processing speeds: AI systems automate slow manual processes like data entry and coding.
- Better fraud detection: AI-powered solutions prevent financial crime by detecting anomalies and patterns that human investigators might miss.
- Cost savings: AI improves employee productivity, reducing the need for additional headcount.
- Improved financial system efficiency: Reduced time to process data, generate reports, reconcile accounts, and perform month-end close.
Although many companies offer “AI-powered” financial automation solutions, these are often AI apps tacked onto existing platforms. Only a few providers offer true, built-from-scratch AI solutions — like Stampli. Let’s look at how these solutions stand above the rest.
Examples of AI in finance operations
AI is transforming how finance teams work by automating repetitive manual tasks, providing accurate data and analytics, and streamlining financial workflows. Here are 5 ways AI is changing financial operations:
- Intelligent document processing
- Process automation and optimization
- Dynamic workflows
- Data analytics and reporting
- Anomaly detection and risk management
Let’s break these out.
1. Intelligent document processing
AI-powered financial solutions can scan, extract, process, and share information from documents, replacing slow manual data entry processes. They leverage OCR and ML technologies to extract data from paper and digital documents and can learn and understand different formats, fonts, and languages. AI can also improve document management by automatically organizing and storing digital documents and providing advanced search features to help users locate documents.
Use case: AI helps Wolf Construction go paperless
Based in West Des Moines, Iowa, Wolf Construction is a fast-growing contractor providing services across the Midwest. The company had made good progress moving to digital documentation in its construction operations, but it was struggling to manage its manual paper-based accounts payable processes.
Wolf was drowning in paper. The company usually has 25-45 projects on the go, which meant they had to manually process invoices from hundreds of subcontractors and suppliers. They were overwhelmed and, according to president Jon VanDis, at risk of missing vendor payments. “You didn’t know if you’re missing invoices. Something could have fallen out of a folder. It could be sitting on someone’s desk for days.”
Wolf needed a way to streamline invoice processing across multiple locations, provide greater visibility to invoice status, and better manage cash flow. They chose Stampli to automate their AP processes and help them go paperless.
Stampli replaced Wolf’s manual invoice scanning, data entry, coding, and verification processes, saving them significant time and eliminating invoice errors. They also streamlined Wolf’s approval process, enabling remote access for approvers so stakeholders could review, comment on, and approve invoices from different locations.
After implementing Stampli, Wolf got greater visibility into invoice status and, according to Jon, much better control over cash flow: “We can see exactly who we’re waiting for, or where any invoice stands. Our controls are stronger today because it’s easier to find information.”
2. Process automation and optimization
AI can automate and optimize repetitive finance processes to reduce processing time and improve employee productivity. Financial automation platforms leverage AI to extract and identify key information from documents, detect errors, classify and GL code transactions, and expedite approvals.
Use case: AI reduces processing time and transforms month-end close
Beyer Mechanical is one of the largest air conditioning companies in South Texas, providing heating, ventilation, and air conditioning (HVAC) services to thousands of customers. They wanted to improve their AP processes so they could close their books no later than the tenth day of every month. Unfortunately, inefficiencies in their invoice management process were preventing them from reaching that goal.
Three factors were slowing down Beyer’s invoice processing.
- Although Beyer’s AP clerks were processing 1,500 invoices using an older AP automation system and PaperSave, they still had to manually code and route each invoice.
- Beyer’s ERP (Sage Intacct) wasn’t integrated with PaperSave, which made PO matching for invoices unreliable.
- Beyer’s manual approval process required managers to review and approve each invoice individually.
Beyer’s controller, Jeremy Heisey, described how these factors combined to slow down invoice processing: “We’d have POs in our AP system that PaperSave couldn’t pick up, some POs that came in with incorrect information, and duplicate invoices it couldn’t catch. Each time a clerk clicked on a PO, the system would stall for 15-20 seconds, and twice that time any data had to be corrected.
“When you’re coding 1500 invoices a month, that adds up. The approval process was also lengthy, as managers had to approve each invoice individually. Ultimately, we couldn’t get all of our invoices in on time, so we couldn’t close our books on time.”
Beyer chose Stampli to integrate with Sage Intacct and automate their invoice management process. Stampli fully automated the process in 48 hours without changing Beyer’s existing workflows. They integrated with Sage Intacct and leveraged AI to optimize Beyer’s invoice capture, coding, and approval workflows. All of Beyer’s POs are now in Intacct and can be read in Stampli to enable automatic invoice matching.
After implementing Stampli, Beyer reduced its monthly invoice processing time by 60%. It now approves invoices 60 times faster. As a result, they are able to close their books on time every month. “The second we got Stampli, that happened, the very first month,” said Jeremy. “We closed by day 10.”
3. Dynamic workflows
Many financial automation platforms offer fixed, rules-based workflows. For example, some spend management platforms offer value-based approval routing workflows. These route expenses to the appropriate approver based on their value. Organizations need to update fixed workflows if their business processes change, which can be a complex, expensive process.
AI-powered financial management solutions feature dynamic workflows. They leverage AI and machine learning to automatically adapt their workflows when the organization’s business processes change.
Use case: Flexible approval workflows for Family Allergy & Asthma
Family Allergy & Asthma, serving patients in Kentucky, Indiana, Ohio, and Tennessee, offers a range of services covering allergy, asthma, immunology, and sleep medicine. They collaborate with a varied group of suppliers, including immunotherapy drug producers, medical equipment providers, and office supply companies.
Each department directly orders from vendors, a procurement structure that gave their finance department insight into spending. “We had no visibility into invoices until the order arrived,” said controller Zach Kulow. “Our accountant hand-coded each invoice and managed approvals among three to four people.”
Family Allergy & Asthma wanted a financial automation solution that would shorten their invoice cycle, give their finance team visibility into invoice status, and improve their approval routing processes.
Stampli’s built-for-AP design met their needs. “Most of the AP automation vendor tools center around bill payment, and the AP side was not as robust,” said Zach. “When we found that Stampli did exactly what we wanted, it was the obvious choice.”
Zach’s team implemented Stampli in a single day and trained 15 approvers on how to use the new system. They reduced their invoice cycle from 10 to 3 days, a 70% reduction, and were able to move invoices into Sage Intacct 90% faster.
However, the biggest benefit of implementing Stampli was how it provided more visibility and control over the invoice approval process. “The flexible approval workflow in Stampli is very valuable, as we get responses from approvers much faster,” said Zach. “We can easily and quickly identify who has what invoice and its status in the approval process.”
4. Data analytics and reporting
AI and machine language algorithms can identify outliers, correlations, and patterns in financial data in real time. They can analyze historical data to generate reports, forecast future trends, assess risks, and optimize financial management strategies. AI tools can also use visual dashboards to clearly present complex financial information, enabling finance leaders to make informed decisions.
Use case: Real-time analytics supports rapid business growth
LTC Ally provides back-office accounting services to over 400 skilled nursing and assisted living facilities. A fast-growing company, they add up to 30 new facilities each month. Onboarding these new clients presents a unique challenge. Each client brings its own accounting needs, including vendor relationships, coding preferences, approval workflows, and compliance requirements. In addition, LTC Ally needs to integrate each entity’s accounting data into its Sage Intacct environment, requiring a detailed mapping of each client’s accounts and financial operations.
“Our business was scaling, but our AP operations were becoming increasingly complex and resource-intensive,” explained Sam Pirutinsky, Partner/VP of Finance at LTC Ally. “We needed to find a way to bring on new entities faster and more efficiently without the need to linearly scale our staff.”
They turned to Stampli for a solution. As a Sage Recommended Solution, Stampli’s strength in multi-entity environments was ideal for LTC Ally’s needs. After implementing Stampli and integrating it with Sage Intacct, LTC Ally could synchronize all relevant data for each client, streamlining the detailed mapping of the client’s accounts without losing important details of its financial operations. Once the client is up and running in Stampli, Billy the Bot, Stampli’s AI assistant, learns its unique AP processes to speed up invoice processing and eliminate human error.
“Stampli mirrors the setup in Sage Intacct. There may be 20, 30, 40 entities, but Stampli mimics the structure,” says Sam. “It pulls in each entity’s vendors, GLs, POs, locations, departments, and any other important data. If there is an allocation, you do it in Stampli and it syncs into Intacct. If there are custom fields, Stampli supports those custom fields.”
Implementing Stampli provides LTC Ally with actionable real-time data and analytics that help them optimize AP processing for their clients. For example, Stampli reports approval timing data, which enables LTC Ally to have evidence-based discussions about bottlenecks — turning a vague problem into one that can be surgically corrected.
Sam says, “With Stampli, we can identify exactly where a hold-up is, who is responsible, and how to follow up with them. When a customer tells us, ‘I’d like to do a better job of closing the month’, we can demonstrate where things are really being held up.”
5. Fraud detection and risk management
AI systems can monitor financial data and processes in real time to identify anomalies or patterns that might indicate fraudulent activity or potential risks. ML algorithms can be trained to recognize unusual transactions, suspicious account activity, or invoice discrepancies that human reviewers might miss. By detecting and flagging suspicious activity in real time, AI helps finance departments take proactive steps to investigate and prevent fraud. AI also continuously learns and adapts to new data, improving its ability to detect evolving fraud schemes.
Use case: AI helps Goat Hospitality Group detect and prevent fraud
Goat Hospitality Group owns and operates a portfolio of nightclubs, hotels, and restaurants in the Miami area. Managing financial operations is critical in the hyper-competitive hospitality industry, especially for a growing business. Goat Hospitality’s financial processes were cumbersome and outdated. They had no visibility into transactions, exposing them to misuse of credit cards and cash, fraud, and misappropriation of funds. The group needed an expense management solution that gave them visibility and control over financial operations and detected and prevented fraud.
Implementing Stampli was “a game changer for our financial operations,” said David Santos, CFO of Goat Hospitality Group. Stampli integrated with QuickBooks Online and replaced Goat’s manual financial processes with an end-to-end solution that streamlined AP workflows and improved fraud detection.
Goat also implemented Stampli Card to gain greater control and visibility over expenses across its various locations. With anti-fraud features like card limits, MCC code restrictions, and real-time visibility into purchases, Stampli Card significantly reduced petty cash fraud and unauthorized purchases. “I see when it’s used,” said Sam. “I can require whoever uses it to include a receipt. I save money with these controls.”
Stampli: The AP platform that goes far beyond AP
Stampli is the leading AI-powered AP automation solution and the only one designed for accounts payable. Featuring an intuitive, easy-to-use interface and Billy the Bot, Stampli’s AI copilot, it’s for finance teams who want the efficiency of AI automation but don’t want to rework their ERP or change their processes.
First to market with next-gen AI
Stampli isn’t just keeping pace with AI innovation in finance; it’s setting the pace.
Built on a foundation of next-gen AI, Stampli has a deep understanding of the challenges facing accounts payable teams. This combination of technical expertise and AP experience lets identify the emerging AI technologies best suited to improve our customers’ outcomes and rapidly deploy them to meet their evolving needs. With millions of hours of customer labor saved and over $85 billion in invoices processed annually, Stampli delivers unparalleled efficiency and productivity gains for our 1600+ customers.
What makes Stampli different?
AI working for humans
Stampli’s AI assistant, Billy the Bot, learns and understands your cost accounting rules. Like an AI copilot, Billy works alongside AP teams to streamline workflows and drive major productivity gains.
Start in days without changing your processes
Stampli implements in days, not weeks. It pre-builds its ERP integrations in-house to support all native functionality. You don’t need to change your processes or rework your ERP.
Customer support by accounts payable professionals
Stampli is the recognized leader in customer support for AP automation. Our support team members all have backgrounds in accounts payable and ERPs and understand your challenges.
Ready for the future of AI in finance
Stampli innovates years ahead of the industry as it’s had AI at the core since 2015. It adapts as your business evolves, with the flexibility and power to handle new AI technologies, new AP policies, new people, ERP updates and migrations, and even M&A.
Ready to take the first step to better financial process automation? Meet with a Stampli expert to get started.
