# Accounts Payable departments lag behind in AI automation Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-01-11 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: New Survey Reveals Slow Adoption of Invoice Automation Meta Description: Discover how automation adoption is slow, with key findings on paperless environments, AP automation, RPA, and AI technologies in accounting departments. URL: https://financedigest.com/accounts-payable-departments-lag-behind-in-ai-automationhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd140618-1-3-1736838650565-compressed.jpg) **according to new survey from Ephesoft** _Two-thirds of accounting departments still process invoices manually: only 15% are fully paperless_ Despite the increasing need to process invoices remotely as more employees are urged to work from home, the majority of companies are still lagging behind in automation implementation. Accounts payable departments are still largely processing invoices manually, according to a survey of accounting and finance professionals released today by [Ephesoft, Inc.](https://ephesoft.com/?utm_source=pr&utm_medium=press&utm_campaign=emea-ap-poll) The [survey gathered responses from 200 accounting and finance](https://www.financedigest.com/sentiment-in-uk-finance-falls-at-fastest-pace-since-2019-survey.html "Sentiment in UK finance falls at fastest pace since 2019, survey") professionals from 26 countries. Key findings include: **Distributing or processing paper documents** Businesses are shifting to automation of their processes – especially for high-value, high-volume documents such as invoices. However, the survey results indicate that companies are [slow to change when it comes to digitally transforming](https://www.financedigest.com/is-the-road-to-data-transformation-slowing-digital-transformation.html "Is the road to data transformation slowing digital transformation?") invoice processing and other financial documents. - Only 15% of respondents said that their organisation is fully paperless, which [means the majority of businesses](https://www.financedigest.com/carbon-zero-what-it-means-for-business-owners.html "Carbon Zero: What it Means for Business Owners") (85%) are not. - Of those who are not, just slightly over 50% are actively pursuing a paperless environment. - One-third (33%) of companies are predominantly paper-heavy, still far [from intelligent automation](https://www.financedigest.com/why-intelligent-automation-should-be-a-top-priority-for-enterprises-in-2022.html "Why Intelligent Automation should be a top priority for enterprises in 2022"). With an average cost to process per invoice at about £11, a lack of automation is likely to keep [company growth](https://www.financedigest.com/aragonite-market-size-2022-2027-by-trends-share-growth-company-profiles.html "Aragonite Market Size 2022-2027 by Trends, Share, Growth, Company Profiles:") limited, leaving room for a significant increase in productivity. Modern automation has been proven to [cut costs](https://www.financedigest.com/trend-micro-vision-one-stops-threats-faster-streamlines-operations-and-cuts-costs.html "Trend Micro Vision One Stops Threats Faster, Streamlines Operations and Cuts Costs") significantly, often by 80% or more, which can be reinvested in other areas. **Current technologies** When asked whether their businesses currently have document management, workflow, AP automation, RPA or [artificial intelligence](https://www.financedigest.com/artificial-intelligence-ai-to-catalyze-the-continuous-positive-airway-pressure-cpap-devices-market.html "Artificial Intelligence (AI) to catalyze the Continuous Positive Airway Pressure (CPAP) Devices Market") technologies in place, a majority of companies report having some type of document management and workflow tools system in place, but AI applications are still under-utilised. Here’s the breakdown, further showing a [lack of current](https://www.financedigest.com/the-problem-with-current-anti-money-laundering-processes-a-lack-of-context.html "The problem with current Anti-Money Laundering processes: A lack of context") automation tools: - Less than one-third (30%) employ [accounts payable automation](https://www.financedigest.com/has-the-pandemic-accelerated-automation-in-accounts-payable.html "Has the pandemic accelerated automation in Accounts Payable?"). - Only 12% utilise RPA tools and just slightly less (11%) report using AI. While these findings are understandable and relatable, Ephesoft predicts that new AI-powered low-code/no-code, cloud technology, which is evolving at a rapid pace, will remove barriers to entry into AI. **The AI Journey** When the question was posed, “What is your organisation’s location on the AI journey?” responses were split, with 42% saying they were in the planning stage and 40% saying they were not planning on implementing AI tools at all. We can conclude from the data that AI has still not been widely adopted, but many organisations have [plans to invest](https://www.financedigest.com/samsung-elec-breaks-ground-on-new-chip-rd-centre-plans-15-billion-investment-by-2028.html "Samsung Elec breaks ground on new chip R&D centre, plans billion investment by 2028") in it. “This survey confirms that the accounting profession has lagged in adoption of newer technologies such as AI/ML, cloud and low-code/no-code architecture likely impacted by traditionally long implementation cycles and complex integrations,” said Naren Goel, [chief financial officer](https://www.financedigest.com/deutsche-bank-names-eigendorf-new-chief-sustainability-officer.html "Deutsche Bank names Eigendorf new chief sustainability officer"), Ephesoft. “The accounts payable [space is an ideal example where manual steps like entering invoices into an ERP system](https://www.financedigest.com/bae-systems-sees-big-opportunity-in-space-after-uk-satellite-bolt-on.html "BAE Systems sees big opportunity in space after UK satellite bolt-on") can greatly impact efficiency, so it’s exciting that we are finally starting to see innovation in this space with point solutions that are up and running in hours, eliminate manual tasks and allow accounting professionals to focus on higher value-add functions.” The survey on [digital transformation](https://www.financedigest.com/can-ai-supercharge-your-banks-digital-transformation-strategy.html "Can AI supercharge your bank’s digital transformation strategy?"), AI, technology and automation was conducted on Nov. 5, 2020, by Accounting Today on behalf of Ephesoft. Responses are from 200 [accounting and finance](https://www.financedigest.com/utilising-digital-tools-to-close-the-finance-and-accounting-skills-gap.html "Utilising digital tools to close the finance and accounting skills gap") professionals from 26 countries, including CEOs, CFOs Partners, CIOs, CTOs, CPAs, accountants, controllers, auditors and consultants in a variety of industries, including banks, energy, government, healthcare, technology, accounting services, airlines, auto, education, large global consultancies and many others. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---