Accounts payable (AP) invoice automation is a rapidly growing market. Drivers include: the digital transformation of the CFO office, focus on cost reduction and operational efficiency, and advancements in technologies like AI/ML. This market is highly competitive, with numerous vendor choices available. Looking ahead to 2024, it is important for finance and payment professionals to stay informed about the latest developments in AP invoice automation. Here are the key dynamics and trends to consider:
- SaaS solutions and e-invoicing compliance are key focus areas. SaaS-based APIA solutions have gained traction, as they can reduce the burden of on-premises infrastructure and the associated costs and more easily integrate with other technologies and services. There is a significant rise in demand for e-invoicing compliance capabilities. Many countries, apart from the US, have made e-invoicing mandatory. As companies expand and operate globally, they require APIA solutions with compliance features to meet regulatory requirements for e-invoicing and tax in different jurisdictions.
- Siloed systems cause integration and communication issues. Lack of integration within internal systems such as AP invoicing, procurement, and payments, as well as between buyers and suppliers, can result in inefficiencies and communication friction. Vendors are addressing this issue by offering digital supplier communication features like supplier portals, enabling suppliers to track invoice status and talk to buyers. They also compete by providing seamless integration capabilities, leveraging APIs to facilitate hassle-free integration of AP systems with other systems.
- Advanced AI is the new differentiator. Advanced AI technology shows great potential in AP processes, making them more intelligent, secure, and efficient. Vendors are actively experimenting and testing generative AI to automatically produce reports, charts, and graphics enriched with data insights to help corporate finance leaders better analyze their cash flow and financial operations. Vendors also plan to use large language models to extract unstructured or semi-structured information in invoices and other documents, which can significantly boost confidence in their data extraction.
In our latest published report: The Accounts Payable Invoice Automation Landscape, Q4 2023, we also identified 33 AP invoice automation vendors with relevant revenues. Based on their global AP invoice automation revenues, we segmented them into three market presence segments — large, medium, and small — and identified four core use cases for this market: invoice data capture, matching invoices with purchase orders, and payment management.
To learn more details about AP invoice automation, Forrester clients can read the full report or schedule a guidance session or an inquiry.
