Why Artificial Intelliegence (AI) in Invoicing Software?
Online invoicing is already “digital” then why bother about Artificial Intelligence? Invoicing and bookkeeping have been an old concept aging back to the 15-16 century and with the advancement in technology, these accounting methods are still transforming to become more robust.
A question that often comes to one’s mind is that what can AI possibly do to an already automated invoicing process. The answer lies in the succeeding paragraphs.
What is Artificial Intelliegence (AI)?
Artificial Intelligence is that technology that aims to master the most unique power humans had, the ability to “think and analyze”. It’s more than a concept of a robot who follows commands. AI can make a robot observe, think, and then follow a command. From Siri to automated space shuttles, AI is everywhere. It is a way of operation for all technical stuff, be it a simple software or a complicated machine. Now, an online invoicing system is a web-based software whose main job is to generate invoice/expense and update reports. How would you like it if all you had to do was click the send button and all rest was taken care of? Well here comes the role of AI.
Difference between Online invoicing and AI-enabled invoicing
1. Features: AI-enabled invoicing will be much faster, robust, and accurate as compared to traditional bookkeeping methods.
2. Format Compatibility: Traditional invoicing demands a certain format to be followed while reading or designing invoices whereas AI-enabled invoicing is equipped with codes to derive relevant data from the invoice of any format.
3. Pattern analysis: Online invoicing methods mainly focus on generating invoice/expense documents and updating records whereas AI-enabled invoicing is capable of much more ranging from self-learning to determining outliers in a set of invoices for effective decision making.
4. Prediction: AI creates a databank of patterns and with the help of prediction algorithms it can forecast any possible irregularity or deviation in the invoice which is otherwise challenging in standard invoicing.
How AI captures data in the Invoicing process?
1. Identifying Pattern
Artificial intelligence captures data through various methods like classification, extraction, and validation. After capturing data from an invoice of any template, the important sections or fields are identified and relevant information is extracted. The document may be semi-structured or unstructured or handwritten, it does not matter. The machine learning engine is designed to train itself to identify patterns and important information
The data capture solutions of AI helps to classify the invoice document using various algorithms. Thereafter, information is extracted and presented in the form of various metrics and KPIs. Then using regression and clustering algorithms, data is analyzed to learn and predict the behavior of data. In short, it helps businesses make faster and affordable decisions.
3. Identifying Outliers
AI integrated with an invoicing system helps it identify and highlight mismatches, deviation from standard format, and anomalies. These outliers in an invoice can be due to various reasons like data entry error, sampling error, or processing errors. Various statistical modeling techniques and information theory models are used for the detection of deviation. This feature of AI helps in figuring out bad data and determining any possibilities of fraud.
Impact of incorporating AI in online invoicing
1. Save time
2. Save manual effort
3. Reduce/minimize chances of error
4. Audit reports
5. Predict anomalies
6. Faster invoice/expense approval
7. Customize event triggers with action
8. More robust reports with suggestions and recommendations
It goes unsaid that with artificial intelligence you can leave the “thinking ” part to your invoicing app. AI cannot fully replace the human mind so far but it surely can ease up your load and make you efficient enough to plan the future for your business while leaving the accounting on autopilot. Embracing AI is not a choice today but a necessity as you won’t like to be left behind your competitors, would you?