AI is having its moment, and finance leaders are paying attention. With headlines promising sweeping transformation, it can be difficult to tell what’s real, what’s exaggerated, and what’s actually useful to your organization today.
For credit unions, the stakes are high. On top of managing invoices and payments, you’re also dealing with regulatory pressure, member trust, and resource constraints. So how do you determine whether AI belongs in your accounts payable (AP) process—and if so, where?
AI in Finance: What’s Real and What’s Fake
We’re all seeing it: bold claims that AI will replace entire departments, end manual work, and revolutionize finance. Smart credit union leaders are skeptical, though.
The Deloitte 2024 Signals Report found that 70% of CFOs expect productivity gains of 1% to 10% from generative AI (GenAI) implementation like ChatGPT and large language models. This reflects a growing recognition of AI’s potential.
So, what’s driving the excitement?
- Breakthroughs in GenAI have raised expectations across all industries.
- Pressure to do more with fewer resources in finance and operations is at an all-time high.
- Vendors are marketing AI capabilities more aggressively, sometimes without grounding those claims in specific, actionable outcomes.
Let’s be clear: the most valuable use cases for AI today are targeted and focused, not flashy or futuristic.
Think of AI less as a magic wand and more as a high-performance engine. It’s a tool that can dramatically accelerate well-structured processes, but still needs a finance professional behind the wheel.
What AI Is Doing in AP Today
AI is already making measurable improvements in AP—but only where data, structure, and workflows are in place to support it.
Invoice Processing
For AP teams, data entry is a top bottleneck. AI-enhanced OCR (optical character recognition) tools combined with machine learning algorithms can:
- Recognize and extract key invoice fields (vendor, amount, due date) from paper or PDF files.
- Auto-classify line items based on historical coding.
- Learn from corrections over time to improve accuracy.
This speeds up invoice ingestion, as well as reduces input errors and helps AP teams avoid late payments caused by processing delays.
In fact, 93% of respondents to our AI in finance survey said they saw “significant” or “moderate” ROI like the benefits listed above.
Duplicate Detection
AI can spot patterns across hundreds or thousands of invoices that even the best finance teams might miss. For example, it can:
- Flag duplicate invoices based on subtle differences in vendor names or amounts.
- Catch repeated charges submitted under different invoice numbers.
- Identify unusual billing behavior by specific vendors over time.
This helps reduce fraud, ensures internal controls are enforced, and supports clean audits.
Predictive Insights
Beyond transactional tasks, AI can provide forward-looking insights by analyzing trends in your AP data. These insights can include:
- Predicting cash flow needs based on upcoming due dates and historical payment behavior.
- Highlighting vendors that offer early payment discounts you’re not taking advantage of.
- Flagging seasonal spikes in invoice volume so you can prepare your team or adjust workflows.
What AI Can’t Do—And Why People Still Matter
AI can be powerful, but it’s not perfect. In the AP process, context, judgment, and relationships still matter.
AI Doesn’t Replace Critical Thinking
AI tools can suggest the fastest route through a workflow, but they can’t determine whether a payment should be expedited due to a sensitive vendor relationship or whether an exception is legitimate. Your team still needs to:
- Review flagged exceptions.
- Escalate or override approvals.
- Ensure decisions align with internal policies and external regulations.
Without judgment from a seasoned AP professional with company knowledge, there’s a risk of errors, compliance issues, or reputational damage.
Vendor Relationships Require a Human Touch
Credit unions depend on strong relationships with members and vendors alike. While AI can send automated reminders or route invoices, it can’t:
- Navigate a negotiation over revised payment terms.
- Rebuild trust after a delayed payment.
- Understand context in the way a seasoned AP manager can.
In other words: AI can move the process forward, but people preserve the relationships.
Compliance Still Depends on Institutional Knowledge
AI can help enforce rules, but it doesn’t know why those rules exist. Regulatory changes, audit requirements, and the finer details of policy are often dynamic and nuanced.
- A machine can apply a rule, but a person knows when to escalate a concern.
- A tool can track approvals, but your team knows which stakeholders need to be looped in for sensitive vendors.
Preparing Your Credit Union for an AI-Enhanced Future
Implementing AI-enhanced AP automation isn’t about flipping a switch. It’s about building readiness, step by step. Here’s how credit unions can lay the groundwork.
Start With Strong Data Foundations
AI is only as effective as the data it’s trained on. Begin by:
- Digitizing invoice submission (PDFs, online forms, email parsing).
- Centralizing AP processes in a single workflow.
- Eliminating silos between procurement, AP, and finance.
Identify Quick Wins
Look for manual tasks that:
- Happen often (like invoice matching).
- Follow a set pattern (like routing based on department).
- Have low risk (like recurring vendor payments).
Focus on People and Change Management
Adopting AI is a cultural shift. Help your team embrace the change by:
- Providing clear training and hands-on experience.
- Showing how automation reduces burnout and improves job satisfaction.
- Being transparent about what’s changing and what’s not.
AI Is a Tool, Not a Threat
AI is changing finance; it’s undeniable. For credit unions, the goal isn’t to chase every trend—it’s to use technology intentionally to enhance operations, empower people, and protect member trust.
AI won’t replace your AP team. However, it can help them work smarter by reducing friction, lowering risk, and increasing visibility. And when paired with strong data, clear governance, and a finance professional-first mindset, it becomes a strategic asset, not a science experiment.
Ready to give your team the tools to succeed?
At AvidXchange, we’ve spent 25 years helping finance teams reimagine how they work. Our AI-enhanced solutions are built to automate the mundane, elevate your people, and modernize your processes. That way, you can focus on what matters most: your team and customers. Learn about how you can get started by contacting our team.