Artificial intelligence continues to gain traction among finance departments, with organizations increasing their technology investments and looking for measurable improvements in productivity, accuracy, and financial operations. However, achieving a meaningful return on investment requires careful consideration of how AI supports existing processes, particularly in accounts payable (AP).
According to AvidXchange’s 2026 Trends Survey, 63% of mid-market finance professionals plan to increase their investment in AI tools and capabilities. Among organizations already using AI, 79% expressed confidence in their ability to achieve maximum ROI from those investments.
During the recent Controllers Council and AvidXchange webinar, Where AI ROI Breaks Down in AP, Wayne Richards, Director of Sales at AvidXchange, and Michele Retzbach, Principal Solutions Consultant at AvidXchange, discussed where finance teams are finding value in AI, why isolated automation can limit results, and how connecting intelligence throughout the AP lifecycle can improve financial operations.
The discussion examined practical applications of AI, from invoice capture and coding to approvals, payment execution, and fraud prevention.
Finance Teams Are Looking for Greater Returns from AI Investments
As organizations become more familiar with AI capabilities, finance leaders are increasingly examining how these investments contribute to operational performance.
AvidXchange’s survey of more than 500 mid-market finance professionals found that AI investment remains a priority. The findings suggest that organizations are beginning to evaluate these technologies according to their ability to improve accuracy, reduce administrative work, and provide useful financial information.
Richards explained that AI can help finance teams spend less time gathering and organizing information, allowing more attention to financial analysis and business planning.
For example, AI-assisted data processing can reduce the effort involved in reconciliation, variance analysis, and reporting. These improvements may give finance professionals additional time to evaluate financial performance, investigate revenue leakage, and assess different business scenarios.
The speakers also discussed how organizations are reinvesting the benefits of AI adoption. According to the survey, 44% of AI users are directing savings toward additional technology and automation, while another 44% are investing in data security and compliance. Additionally, 35% are investing in new products and service lines.
These findings illustrate how improvements in one financial process can support further investments across the organization.
Why AI ROI Can Break Down in Accounts Payable
One of the webinar’s central discussions concerned the limitations of implementing AI within individual stages of the AP process without considering how those stages work together.
Retzbach explained that organizations may successfully automate invoice capture while continuing to rely on manual spreadsheets, disconnected approval procedures, or separate payment systems.
Although the initial automation may reduce data entry, subsequent activities can still require considerable employee involvement.
As Retzbach stated during the presentation: “When we stop at one stage, you haven’t built a full end-to-end workflow. You’ve just kind of moved the bottleneck to a different part of the process.”
For finance leaders, this distinction is important when evaluating potential returns. Improving the speed of invoice processing may provide immediate benefits, but those gains can diminish when employees must manually transfer information, correct coding inconsistencies, or investigate payment discrepancies later in the process.
A more comprehensive approach considers how information moves from the initial invoice through coding, approval, accounting, and payment.
Connecting these activities can help organizations reduce duplicate work, maintain consistent financial records, and improve visibility into outstanding obligations.
How AI Creates Value Throughout the AP Lifecycle
The webinar identified several areas where AI can contribute to more consistent and efficient accounts payable operations.
Invoice Capture and Data Accuracy
Accurate invoice information establishes the foundation for subsequent AP activities.
AI-powered invoice capture can extract relevant fields, compare information with accounting records, and reduce manual entry. This can help minimize errors that otherwise affect approvals, reporting, and payments.
Retzbach emphasized that organizations should evaluate invoice capture technology based on the quality of the information it produces, rather than processing speed alone.
Duplicate invoice detection and appropriate validation procedures can also help identify potential problems before they progress through the payment cycle.
General Ledger Coding
Coding invoices to the appropriate general ledger accounts can become repetitive, particularly for organizations processing substantial volumes of recurring expenses.
AI can examine historical invoices and previous coding decisions to suggest appropriate account classifications.
For example, recurring utility bills, maintenance expenses, or landscaping invoices may follow established coding patterns. Applying those patterns consistently can reduce manual research and help employees avoid common classification errors.
Finance teams still retain responsibility for reviewing exceptions and confirming that suggested classifications are appropriate.
Invoice Approvals and Workflow Management
Approval procedures represent another opportunity for improvement.
AI can examine historical approval activity, assist with purchase order matching, and recommend routing decisions based on established business rules.
These capabilities may help reduce delays while maintaining the organization’s existing approval requirements.
The speakers also discussed natural-language reporting tools that allow finance professionals to ask questions about outstanding invoices, supplier activity, and payment obligations without manually assembling reports.
Such capabilities can make AP information more accessible to employees responsible for monitoring expenditures and managing financial commitments.
Payment Processing and Supplier Relationships
The potential benefits of AI extend through payment execution.
When payment processing remains disconnected from invoice management, finance teams may continue to spend considerable time preparing checks, maintaining supplier payment details, answering inquiries, and reconciling transactions.
Connecting approved invoice information with payment processing can reduce these administrative responsibilities.
Retzbach explained how AvidXchange supports different payment methods, including virtual cards, electronic payments, and paper checks, while allowing organizations to retain control over payment authorization and timing.
She also described how automated payment delivery and supplier support can reduce the number of routine inquiries handled directly by AP employees.
These improvements can contribute to more dependable payment processing and stronger supplier relationships.
Fraud Prevention and Human Oversight Remain Essential
As AI becomes more common in financial operations, organizations must also consider how the technology affects fraud exposure.
During the webinar, Richards described an incident involving a fraudulent invoice that included a false telephone number. When the customer called the number, an AI-generated voice responded.
Although the communication appeared credible, discrepancies between the invoice information and existing records prompted further investigation.
The example demonstrated why automated processing should be supported by appropriate verification procedures.
Richards emphasized the importance of maintaining human involvement when reviewing potentially suspicious activity: “We can’t put all, you know, a hundred percent confidence in the AI, in any AI probably, but having a human in the loop, you know, someone there to just double check things is super important.”
The speakers recommended evaluating AP solutions for their ability to monitor transaction patterns, identify unusual activity, and flag potential risks before payments are released.
Other considerations include controlled system access, audit trails, duplicate invoice detection, and clearly defined approval permissions.
These measures can help organizations benefit from automation while maintaining accountability for financial decisions.
What Finance Leaders Should Look for in an AI-Powered AP Solution
For organizations considering AP automation, the webinar outlined several capabilities worth examining during the technology selection process:
- Accurate invoice information: Solutions should capture and validate invoice details consistently, with procedures for detecting duplicates and addressing exceptions.
- Intelligence within existing workflows: AI should support established approval structures, coding requirements, and accounting procedures while allowing organizations to adjust processes when appropriate.
- Connected payment execution: Invoice information and approvals should carry through to payment processing, reducing the need for additional manual steps.
- Continuous fraud monitoring: Systems should help identify unusual transactions and potential payment risks before funds are transferred.
- Integration with accounting systems: AP automation should work with the organization’s existing financial system of record and maintain accurate information throughout the transaction lifecycle.
Retzbach explained that AvidXchange’s approach connects invoice capture, coding, approvals, accounting entries, payment delivery, and supplier support.
She also discussed the importance of maintaining employee control over approvals and payment decisions while automating routine activities.
For finance leaders comparing solutions, these considerations provide a practical framework for determining whether a technology investment will improve the entire AP process or address only an individual task.
Measuring the ROI of AP Automation
During the audience Q&A, the speakers addressed how organizations should measure the financial benefits of AP automation.
Richards recommended establishing a baseline of current performance before calculating expected returns.
Relevant measures may include:
- Average time required to process an invoice
- Cost per invoice and payment
- Invoice coding and processing error rates
- Time spent resolving exceptions
- Manual payment preparation and reconciliation activities
- Employee time redirected toward financial analysis and other responsibilities
- Payment-related costs and potential electronic payment rebates
Richards explained that the appropriate measures depend on an organization’s objectives. Some businesses may prioritize direct cost savings, while others may place greater value on improved accuracy, reduced workload, or stronger financial controls.
The speakers also discussed implementation considerations for small and mid-sized businesses.
Retzbach indicated that AvidXchange’s typical implementation timeline for a smaller organization is approximately 45 to 60 days for its combined invoice and payment solution, depending on the complexity of the workflows and user requirements.
Training, configuration, and change management remain important components of the implementation process.
The discussion reinforced the importance of identifying specific operational problems, establishing measurable objectives, and selecting technology that can support those requirements.
AI Should Give Finance Teams More Time for Higher-Value Work
Throughout the webinar, Richards and Retzbach emphasized that AP automation can help employees redirect their attention toward responsibilities requiring professional judgment.
Repetitive data entry, invoice coding, payment preparation, and routine supplier inquiries can consume considerable time within finance departments.
Reducing these activities allows employees to concentrate on financial analysis, exception management, internal controls, and other responsibilities that contribute to business performance.
AI can also support employee onboarding by preserving historical coding decisions and process information that might otherwise depend on individual employees’ experience.
For organizations facing growing transaction volumes or limited staffing resources, these capabilities may help finance teams manage additional responsibilities without a corresponding increase in administrative work.
Final Thoughts
The discussion highlighted an important consideration for finance leaders evaluating AI investments: the effectiveness of automation depends considerably on how well individual processes work together.
Automating invoice capture may improve efficiency at the beginning of the AP cycle, but disconnected approvals, accounting procedures, and payment activities can continue to limit the overall return.
By examining the complete AP lifecycle, organizations can identify opportunities to improve data accuracy, reduce manual responsibilities, strengthen fraud controls, and provide employees with more time for financial analysis.
Establishing clear performance measures and maintaining appropriate oversight can help finance teams determine where AI investments are producing meaningful results and where additional improvements may be warranted.
Watch the Full Webinar: Where AI ROI Breaks Down in AP
ABOUT THE SPONSOR:
AvidXchange is a leader in automating invoice, payment and Accounts Payable processes for mid-market organizations. AvidXchange processes more than $242 billion transactions annually, with 1,600 employees, 8,500 customers, and over 265 accounting system integrations. Learn more at www.AvidXchange.com.
