What if you could cut the time your team spends on invoices in half? For many finance departments, that’s exactly what AI makes possible. By handling the repetitive work, like data entry, invoice coding, and routing, AI in accounts payable frees up hours every week and helps prevent costly mistakes.
Key takeaways
- AI speeds up accounts payable (AP) by automating invoice capture, coding, and approvals.
- AP teams using AI are seeing a significant reduction in manual work, errors, and fraud risk.
- Finance teams gain efficiency and more control over cash flow with AI.
Accounts payable is one of the most manual, time-consuming areas of finance. But it's also one of the easiest to automate. That’s why more finance teams in industries like manufacturing, healthcare, and hospitality are using AI to speed things up, catch errors early, and stay in control.
AI in accounts payable helps you keep up as invoice volumes grow. It helps you stay compliant and shift focus from admin to strategy. From data capture to fraud detection, AI is changing how AP works.
In this article, we’ll explore what AI in AP actually means, how it works, and why it matters.
What is AI in accounts payable?
Artificial intelligence in accounts payable refers to technologies that automate and optimize invoice processing. AI can handle routine decisions, identify patterns, and spot anomalies that would take humans significantly longer to detect.
Unlike traditional automation, which relies on rigid rules, AI adapts, learns, and improves based on data patterns.
Why is AP the perfect use case for AI? Because it deals with high volumes of structured and semi-structured data, making it a prime candidate for intelligent automation.
Emil Fleron, Lead AI Engineer at Rillion, explains:
“Because AP workflows are typically well-defined and repetitive, they’re highly suitable for automation. And when those automated processes still require significant time and human oversight to manage, they become strong candidates for AI enhancement.”
Core technologies behind it
- Optical Character Recognition (OCR): Converts scanned and PDF invoices into structured digital data.
- Natural Language Processing (NLP): Understands invoice context, including supplier names, line items, and tax information.
- Machine Learning (ML): Continuously improves predictions for GL coding, approval routing, and fraud detection.
Current state of AI in accounts payable
According to Rillion's 2025 AI in finance report, over 40% of surveyed finance leaders said implementing AI in accounts payable is a top priority for improving efficiency and competitiveness.
Other key findings in the report include:
- Almost 50% of the finance leaders from the survey are implementing AI in their finance processes this year.
- The biggest obstacle to implementing AI is budget constraints, according to nearly a third of the respondents.
- AI in accounts payable has the potential to double the level of automation and deliver over 90% accuracy.
How can AI be used in accounts payable?
Finance teams in mid-sized and large businesses can apply AI in several ways to transform AP operations. Here’s a look at five key use cases:
AI-powered invoice capture
AI can extract data from both digital and scanned invoices, including line items, totals, payment terms, and tax IDs. Unlike rule-based OCR, AI-based capture improves accuracy over time and adapts to new formats.
This step eliminates manual data entry, reduces touchpoints, and sets the stage for faster processing.
Some solutions can also auto-validate VAT IDs, detect mismatches in totals, or flag missing purchase order references.
Benefits of AI-powered invoice capture:
- Faster AP cycles
- Reduced errors
- Enables teams to focus on strategic tasks like optimizing spending and strengthening supplier relationships
AI for GL coding
AI analyzes historical invoice data to recommend GL accounts, cost centers, and project codes. It can even account for nuances like seasonal variations or department-specific rules.
Accuracy improves with usage, with solutions like Rillion AI achieving over 90% accuracy within months.
For multi-entity or international organizations, AI can adapt coding logic based on entity, currency, or country-specific tax rules, reducing manual review even more.
Benefits of AI in GL coding:
- Reduced errors
- Faster processing times
- Improved accuracy in financial reporting
AI approval workflows
Approval chains are a common source of delays. AI solves this by recommending the most efficient routing path based on historical data, company policies, and user behavior.
It also helps enforce segregation of duties, ensuring compliance by routing invoices to the right person based on thresholds or business unit.
Benefits of AI approval workflows:
- Reduced invoice cycle times
- Prevents missed discounts
- Removes approval bottlenecks
AI Assistant
AI assistants bring an extra layer of intelligence to your AP process. Instead of digging through help docs or waiting for support, your team can ask the AI assistant questions directly. Like how to assign a new approver, fix a rejected invoice, or create a new workflow.
The assistant can walk you through steps, surface the right data, or explain settings in plain language. It’s like having a guide built into your AP tool.
Rillion’s AI assistant, Riley, is available inside the platform to help your team get things done faster. It supports both seasoned finance pros and new users alike.
Benefits of AI assistants for accounts payable:
- Faster onboarding for new users
- Quick answers for questions about approval flows or vendor setups
- Troubleshooting basic issues on the spot
- Reduced support tickets and training time
AI-powered fraud detection and compliance
AI can flag anomalies, duplicate invoices, or unusual vendor behavior that might indicate fraud. It also ensures an automatic audit trail, logging every action for future reference.
According to the 2024 ACFE Occupational Fraud: A Report to the Nations, organizations lose an estimated 5% of revenue each year due to fraud. AI can help reduce this risk by catching duplicates, unusual patterns, or vendor inconsistencies early.
AI also supports compliance with internal policies, external regulations (like SOX or GDPR), and audit readiness by maintaining detailed logs of all actions and approvals.
Key benefits of AI in accounts payable
1. Faster invoice processing
AI speeds up every step, from capture to approval. Processing times drop from days to hours, especially when combined with touchless workflows.
2. Fewer errors and exceptions
Automated coding suggestions and validation reduce manual errors, duplicates, and incorrect entries.
3. Reduced manual work
With AI doing the heavy lifting, finance teams can focus on exceptions, analysis, and strategic planning instead of data entry.
4. Stronger compliance
AI enforces business rules automatically and tracks every step for audit readiness.
5. Better fraud prevention
AI models flag suspicious activity, such as invoice duplication, unusual amounts, or vendor irregularities.
6. Improved cash flow control
With faster approvals and better accuracy, finance teams can optimize payment cycles and take advantage of early payment discounts.
7. Easier scaling
AI allows finance teams to handle growing volumes of invoices without increasing headcount, making it easier to scale efficiently.
Real-world results
Rillion customers often report significant reductions in manual work and drastically improved invoice cycle times.
Here's what some customers are experiencing with Rillion AI:
With Rillion AI, we’ve nearly halved the time we spend on invoice coding and approvals.
— Finance leader/AP Manager, large healthcare company
The AI Assistant helps me get quick answers to my questions about the system, so I can keep working without getting stuck or waiting for support.
— Accounting Assistant, large private property company
According to Rillion's AI in finance report, companies using AI in their invoice processes achieve up to 90% accuracy in account coding and workflow predictions, effectively doubling automation rates.
How to get started with AI in AP
Implementing AI in accounts payable might feel overwhelming at first. Changing the way you've always done things is not easy, and decision paralysis can hit hard. Where should you even start?
For those not sure how to approach AI implementations, Rillion's Lead AI Engineer Emil has some advice:
“It’s generally easier to begin with AI implementations that support existing processes, allowing staff to validate and adjust AI-generated outputs. This approach combines the efficiency of AI with the nuance and oversight of human expertise.”
What you need
- A digital invoice process or plans to move away from paper.
- An ERP or accounting system that connects easily with AP tools.
- A team that’s open to simplifying and modernizing workflows.
- Clear goals. Like faster approvals, fewer errors, or better compliance.
Getting started doesn’t mean a full overhaul. Many companies begin with one process, like invoice capture, and expand over time.
Choosing the right AI solution
- Make sure it integrates with your ERP and workflows.
- Look for AI that learns from your team’s behavior, not just rules.
- Ask how the system handles compliance, audits, and fraud detection.
- Prioritize vendors with proven customer success, not just bold claims.
The right solution should feel like an extension of your team, not just another tool.
Tips for a smooth AI implementation
- Start small. Focus on one pain point (like coding or routing).
- Involve your users early and let them test AI predictions in real time.
- Assign a person responsible for gathering feedback and refining settings.
- Monitor early wins: time saved, accuracy gains, fewer touchpoints.
- Share quick wins across the team to build momentum.
The more you engage your team, the faster AI becomes part of the daily routine. And once the results show, it’s easier to scale.
Get started with AI in accounts payable: Explore Rillion AI
AI in accounts payable isn't some future trend. It’s already helping finance teams work faster and make fewer mistakes. You can see the difference in less time spent on manual tasks, fewer errors to clean up, and a smoother, more reliable process.
Rillion AI is built to support that shift. It fits right into your workflows and helps your team work more efficiently, with less friction.
Key capabilities:
- AI Invoice Capture: Over 90% accuracy across formats
- Smart GL Coding: Learns from your historical data
- Approval Workflow Predictions: Routes invoices to the correct approvers and foresees exceptions
- AI Assistant: Riley, Rillion’s conversational AI assistant, gives your team instant help with AP tasks, vendor questions, and support.
Rillion AI integrates with leading ERPs like Microsoft Dynamics 365 BC, SAP B1, and NetSuite, making it easy to roll out and scale.
Book a personalized demo of Rillion today to see how you can process more invoices faster, while staying in control.
AI in accounts payable FAQs
How does AI help in accounts payable?
AI tools in accounts payable can read invoices, suggest account codes, route approvals, and spot errors or fraud, cutting manual work and speeding up the process.
How does AI reduce errors in AP?
AI reduces errors in AP by learning from past invoices and behavior, so coding and routing are more accurate and less prone to human error.
Is AI difficult to implement in AP?
No, modern AI solutions are designed for easy onboarding. Many integrate directly with your existing ERP, and results are often visible within weeks.
