The corporate back office is experiencing a significant transformation, with accounts payable (AP) at the forefront. Once regarded as a vital yet unglamorous component of corporate finance, AP is now stepping into a more strategic role thanks to advancements in artificial intelligence (AI). This shift heralds a new era where AP is not only about processing invoices and managing exceptions but is also positioned as a source of liquidity, resilience, and revenue.
According to Finexio CEO and founder Ernest Rolfson, companies are beginning to recognize that AI represents more than just “automation with kind of sexier marketing.” Instead, he emphasizes that treating AI as infrastructure allows businesses to leverage their data as a strategic asset. This distinction is crucial; while traditional automation merely speeds up existing processes, AI fundamentally reshapes what is possible within AP workflows.
Historically, the scale of AP has been limited by labor economics, where the increasing numbers of suppliers, invoices, and payment methods necessitated additional staff. Rolfson notes that AI changes that dynamic by effectively addressing the inherent “math problem” associated with manual AP processes. This technology allows for high levels of personalization and timely supplier outreach without increasing headcount, a significant advantage in the context of tighter labor markets and economic uncertainty as companies look toward 2026.
This advantage compounds over time; AI systems improve with each transaction, creating what Rolfson describes as a “competitive moat” for organizations willing to invest early in these technologies. The limitations of traditional AP thinking are starkly illustrated by the slow adoption of virtual cards, which, despite their speed, security, and rebate benefits, have only seen about a 7% adoption rate nationwide. Rolfson attributes this to companies relying on static rules for payment processing, which he describes as “lazy thinking.”
AI introduces a dynamic decision-making model that optimizes payment methods at the transaction level, taking into account various factors such as fees, terms, and supplier behavior. Rolfson acknowledges that this level of complexity exceeds human capacity, particularly for teams with limited resources. Without AI-driven platforms, AP departments face challenges in managing supplier enrollment, retries, refunds, and exceptions manually, which becomes increasingly unviable as the number of suppliers grows.
The architectural difference between modern AI-native AP solutions and legacy systems is significant. Traditional providers typically “bolted payments onto existing AP workflows,” creating disjointed processes. In contrast, AI-driven platforms integrate payments as a core component of the AP system, enabling every transaction to generate earnings, create float, and reduce fraud losses. This transition is shifting the perception of AP from a cost center to a potential profit center.
However, technology alone cannot drive this change; the most successful AP teams embody a cultural mindset shift. Rolfson points out that these teams actively discourage sending checks, which pose higher fraud risks and lower supplier satisfaction. Instead, they promote electronic payments, particularly cards, and incorporate payment strategies into supplier negotiations, using faster or more predictable payments as leverage.
In the realm of fraud prevention, the stakes have also escalated. “Now you’ve got AI that can generate invoices that look pixel-perfect,” Rolfson states, emphasizing the rising sophistication of fraud tactics that are now comparable to “nation-state quality.” The landscape of phishing and fraudulent activities has evolved, necessitating a proactive defense built on AI. This involves real-time identity validation, confirming payment instructions for each transaction, and continuously monitoring suppliers against risk signals and fraudster lists.
While AP may not be glamorous, its role is rapidly evolving into a critical lever within finance. As organizations harness the power of AI to refine their AP processes, they are not just adapting; they are positioning themselves strategically for future challenges and opportunities.
For more insights on AI and its impact on business processes, consider exploring resources from PYMNTS and IBM.
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