Supply chain complexities, economic uncertainty, and evolving trade regulations have transformed Accounts Payable (AP) from a back-office operation into a major cog in many organizations' cash management machines.

However, AP's growing visibility and strategic importance bring new challenges, such as the urgent need to streamline processes and embrace data-driven decision-making to boost competitiveness.

AI in Accounts Payable Trends 2025

Ardent Partners estimates that approximately 75% of AP departments worldwide are currently using some form of automation and AI tooling to streamline core AP functions.

This includes sophisticated Optical Character Recognition (OCR) and machine learning (ML) technologies, which can automate invoice capture and data extraction to minimize manual data entry, reduce errors, and improve invoice categorization –– a capability already adopted by 55% of organizations.

Moreover, AI-driven analytics (currently used by 68% of AP respondents) enhance invoice processing by analyzing historical data to optimize approval workflows beyond basic rules. These advanced AI algorithms also improve real-time and predictive analytic capabilities, strengthening cash flow optimization, vendor management, and fraud prevention.

Looking ahead, Ardent Partners predicts significant "FOMO" (fear of missing out) among AP leaders in 2025, as they recognize the agility of forward-thinking competitors already leveraging AI solutions in the evolving global financial landscape.

Invoice Automation is the Key to AP Transformation Success

The journey towards AI-driven AP is intrinsically linked to the broader digital transformation efforts across enterprises. Organizations with core AP automation and ePayables solutions already in place are best equipped to capitalize on AI's advantages.

This is supported by Ardent Partners data, showing that 67% of organizations have implemented e-invoicing and 68% utilize electronic B2B payments, creating a strong foundation for more advanced AI integration.

However, achieving true transformation requires more than just deploying new technologies. To be successful, these projects necessitate strong executive sponsorship, seamless cross-functional collaboration, and specialized expertise in both AP and Accounts Receivable automation and e-invoicing mandates. Tungsten Automation addresses these needs through streamlined invoice software deployment, complemented by expert compliance advice and supplier onboarding services.

The Pursuit of "Touchless" Invoice Processing

Touchless invoicing (also known as ‘straight-through invoice processing’), where invoices are received, checked, and approved without human intervention, remains a primary goal for many AP leaders. Currently, 24% of organizations have implemented fully automated invoicing technologies, with an average of 32.6% of all invoices processed in this manner.

Subsequently, Ardent Partners found that invoice exception rates have decreased dramatically over the past year, now averaging 14% across organizations. While positive, there's room for improvement, as best-in-class exception rates are just 9%.

Furthermore, the average cost of processing a single invoice is $9.40, with best-in-class benchmarks at $2.78 per invoice. When multiplied by the thousands of invoices processed monthly, the potential for cost reduction and freeing AP teams for value-generating tasks is undeniable.

The key to maximizing touchless invoicing (as explained in the comprehensive eBook) as well as achieving Ardent Partners' best-in-class performance of 49.2% straight-through processing, lies in intelligent automation, driven by AI-powered analytics and supported by continuous monitoring and invoice approval workflow optimization.

AP Priorities and CFO Focus in 2025

In the Ardent Partners report, AP leaders reported facing significant hurdles, such as increasing fraud risk (29%), high exception rates (53%), and lengthy invoice approval workflows (41%). As a result, their top priorities for 2025 focus on technology deployment to overcome these challenges.

2025 AP priorities include:

• Implementing AP automation (48%)
• Improving AP reporting and data analytics (41%)
• Enabling more suppliers to submit invoices electronically (40%)
• Reducing invoice processing costs (33%)

Despite these ambitions, strategic planning within AP remains inconsistent. While 73% of organizations have a strategic AP plan, only 36% have a multi-year outlook. The survey also found that CFOs are increasingly focused on the AP function, demonstrating its growing strategic importance.

Notably, 37% of CFOs review and approve annual AP plans, and 65% of AP teams are now directly involved in cash management. Leveraging invoice due dates, payment terms, and cash flow forecast data is becoming vital for strengthening a company's financial position.

Tungsten Automation: Improving the Invoicing Metrics that Matter

In summary, Ardent Partners' "AP Metrics that Matter in 2025" report highlights the significant evolution of AP function in response to global economic uncertainty and emerging AI technologies.

Tungsten Automation offers solutions like InvoiceAgility, which is designed to empower AP teams in this new era. The platform leverages AI-driven financial analysis through Tungsten Copilot for Invoice Insights, which provides actionable, generative AI-powered analytics on supplier trends to uncover valuable cost-saving opportunities. Moreover, the smart machine-learning capabilities ensure continuous improvement, learning from corrections and exceptions to enhance accuracy with every invoice processed.

To explore these findings further and learn how Tungsten Automation can help your organization thrive, we encourage you to join our upcoming live webinar. You can also download the full Ardent Partners report here to gain exclusive insights into key industry benchmarks and trends shaping the future of Accounts Payable.