Unlocking the full potential of AI in Source-to-Pay: 
A strategic approach

The needs of Procurement and Finance departments are changing quickly, with artificial intelligence (AI) emerging as a key driver. Integrating AI and machine learning (ML) provides substantial strategic benefits, but how it is executed is crucial to fully realise this potential.
 
Procurement and Finance are recognised for their data-driven approach and their adoption of emerging technologies to enhance efficiency, reduce costs, identify fraud, and ensure smooth operations. Therefore, it's no surprise that AI is being adopted as a powerful tool for innovation and operational efficiency.
 
However, in the race to adopt AI, a clear strategy is vital.
 

Many companies believe that generative AI models, like ChatGPT, are a one-size-fits-all solution for all business processes. While these models excel in language processing and generating conversational responses, they often fall short when it comes to structured tasks that require precision and cost efficiency.
 
Generative AI models are undeniably powerful; however, their true value emerges when paired with the valuable knowledge embedded in an organisation’s rich data This is where data orchestration plays a vital role. Data orchestration involves managing data-related tasks such as collecting data, performing quality checks, transferring data across systems and automating workflows. A key example is converting unstructured data into a standardised format for AI processing, such as transforming unstructured data into electronic invoices. This step can be the critical factor that determines the success or failure of Generative AI, especially with fragmented databases and disparate IT systems.
 
As organisations work to harness the power of AI, particularly generative AI, they often encounter a gap between its potential and the realisation of tangible business value. After all, the quality of AI outputs depends on the quality of the input data. While generalised AI models are excellent for broad, high-level tasks, they struggle with the precision and efficiency required for specialized processes—invoice coding being a prime example.
 
For example, Proactis Rego Cai uses cutting-edge technology to revolutionise purchase order and invoice coding. Engineered to enhance the AP Automation process through improved operational efficiency and accuracy, it leverages predictive AI and machine learning to elevate organisations from manual, error-prone coding in their order and invoice processes, to a more sophisticated, efficient and accurate AI-driven approach. This helps decrease the time spent manually coding transactions, reducing the risk of human error, improving the accuracy of first-time coding​ and financial data, and reducing cumbersome downstream adjustment of codes. And, thanks to advanced machine learning, Rego Cai will continue to learn, once implemented, driving further accuracy of coding and improved data quality for reporting.
 
As Procurement and Finance professionals, it's understandable to feel uncertain about the growing presence of AI in the workplace.  While discussions about automation often focus on job displacement, the reality is much more promising – creating new opportunities to boost strategic value and improve efficiency. Instead of fearing AI, employees should see it as a valuable ally – a tool meant to enhance their skills and simplify their work.
 

By automating repetitive tasks, reducing errors and enhancing collaboration, these tools allow employees to focus on meaningful, high-impact work that leverages their skills and creativity, and increase accuracy and confidence in results to minimise anxiety. And for employers, the benefits of AI - greater efficiency, cost savings, and enhanced accuracy - are clear!
 
AI can help professionals in many ways, including the creation of opportunities, management of risk and fraud, increased transparency and compliance, automation of operations and cost reductions, but the advantages of implementing AI for procurement and spend control could be enormous. Aside from the efficiency gains and faster processes, when AI is used to help control spending proactively, organisations can:
  • Reduce overspending and increase compliance by supporting, guiding and advising at a far earlier stage than previously possible, with a far greater degree of accuracy. This includes restricting maverick spending before it happens rather than after.
  • Get greater visibility into overall spending, like never before. Users will have expert insights and predictive behaviours so will be guided far earlier in the cycle and more accurately.
  • Capture invoices and convert unstructured data into electronic invoices using AI extraction.
  • Become more agile, using AI to drive even greater efficiency and accuracy, minimising duplication, errors and further reducing the need for manual intervention.
  • Speed up and improve the accuracy of coding transactions and therefore minimising the risk of error and reducing the manual effort involved.
  • Reduce the need for human intervention with agentic AI.
  • Ensure standardisation of integrations and drive down time to integrate Source-to-Pay and wider technology stacks.
AI isn’t here to replace, but to amplify, freeing up Procurement and Finance professionals to focus on higher value activities. Employees who embrace AI tools often enjoy a better work-life balance, less stress and more time to develop new skills or pursue personal interests. These benefits lead to greater job satisfaction and personal fulfilment, while also delivering significant advantages to the organisation, such as improved efficiency, cost savings, and enhanced decision making.
 
By harnessing the right technologies and the expertise to implement them effectively, organisations have the opportunity not just to meet the changing demands of the market, but to lead it. Now is the moment to rethink what's possible in Finance and Procurement.

Learn more about how Proactis is using AI or talk to us today to explore how AI-driven solutions can boost performance, unlock strategic value, and position your business for sustained success.