Accounts payable (AP) has come a long way!
Since the days of paper invoices and filing cabinets, businesses have transitioned to using spreadsheets and basic accounting software to manage AP processes.
While these initial technology advances offered a step up from paper processes, they still relied heavily on manual processes and left room for errors. Thus began a shift toward complete AP automation, a journey that began over a decade ago and continues to transform to date.
A global survey by DocuClipper revealed that only 20% of AP teams are fully automated, with 41% planning to automate their payables processes by the end of 2025.
Whether you’re new to AP automation or looking to take full advantage of its capabilities, understanding the future of AP automation will help you make strategic decisions and optimise your payable processes in 2025 and beyond.
Here are 5 AP automation trends you should be aware of to help with decision-making.
Trend 1: Increase in Cloud-Based AP Solutions
By 2028, half of all enterprises are expected to use industry cloud platforms to stay competitive, according to Gartner. This shift is accelerating in 2025, especially in cloud-based accounts payable automation.
Why?
Traditional AP systems are like clunky old storage cabinets: error-prone, easy to misplace invoices in, and painfully slow when it comes to approvals. On the other hand, cloud-based AP solutions are the sleek, modern alternative.
How does it benefit you?
Anytime access - Your finance team is no longer tied to their desks or bogged down by clunky systems. With cloud-based solutions, they can access data from anywhere, whether they’re in the office, working from home, or even on the go.
Faster approvals - You no longer need to wait days for approvals or chase down invoices, because documents can be actioned in real-time. Need to ensure goods have been received or product pricing is correct? It’s all there, instantly visible to the whole team.
Trackable audit trails - Imagine the confidence that comes from knowing every action is recorded through time and date-stamped tracking. Detailed audit trails are at your fingertips, giving you a clear picture of your financial records while ensuring you meet every compliance requirement.
With cloud-based AP automation, you have a supercharged financial system that keeps you agile and in control, no matter where your team is.
Trend 2: Closing the Gap with Unified Integrations
Enterprise Resource Planning (ERP) systems are the backbone of many businesses for refining processes across finance, operations, and supply chain. Yet, even the most powerful ERPs can hit a roadblock when it comes to AP. This is where the magic happens—integrating AP automation with your ERP. By seamlessly connecting your AP platform to your ERP solution, you can finally break free from the common bottlenecks that slow down your processes.
How does it benefit you?
Seamless data syncing - By integrating a compatible automation solution with your ERP system, you get seamless data syncing that removes the need for manual data entry, which is time-consuming and prone to errors.
Automated invoice lifecycle—With an invoice automation solution, the entire process runs smoothly with minimal human intervention. All processes are automated, from data extraction and precise PO-to-invoice matching to multi-tiered approval workflows and statement reconciliation.
Real-time analytics - Dashboards provide a comprehensive, real-time view of your AP operations, offering actionable insights and enabling your team to make data-driven decisions. This combination of efficiency, accuracy, and visibility positions your business for growth in a competitive market.
Trend 3: Prioritisation of Fraud Prevention
Trend 3: Prioritisation of Fraud Prevention
Fraudulent activitysaw a sharp rise in 2024, with 68% of businesses reporting experiencing fraud attempts. As a result, data and financial operation security remains a top priority for businesses in 2025.
AP automation is playing a pivotal role in addressing these challenges by introducing security innovations like the Zero Trust Model.
The Zero Trust Model operates on the principle of “never trust, always verify.” This means that users and devices must continuously authenticate themselves, even within the company’s network. Key components like multi-factor authentication (MFA) and restricted user permissions ensure that only authorised personnel can view or interact with critical financial data.
How does it benefit you?
Safeguarded sensitive data - No more constant concern over data breaches, whether internal or external. With AP automation powered by the Zero Trust Model, only trusted and verified users have access to your sensitive financial data, safeguarding your systems.
Reduced manual checks - What’s even better is that with fraud prevention measures in place, the need for manual fraud detection is greatly reduced. This saves your AP department significant time that would otherwise be spent double-checking processes and verifying information.
More time for high-impact tasks - With your AP system secure and efficient, you can shift your focus away from the daily grind of administrative tasks and put your energy into improving the business, innovating, and building stronger relationships with suppliers and clients.
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Trend 4: Emphasis on Easy Set Up and Usage
Trend 4: Emphasis on Easy Set Up and Usage
Companies are increasingly looking for automation solutions that are easy to set up and simple to access. With limited time to spend on lengthy training sessions, businesses want solutions that can be quickly integrated and put to use, allowing finance teams to start benefiting from automation right away.
Moreover, as more industries require employees to work outside the traditional desktop setup, mobile accessibility is becoming a key priority. The ability to manage AP processes on the go, whether it’s approving invoices or checking financial data, is becoming essential for maintaining efficiency and agility.
How does it benefit you?
Quicker usage - An easy setup for AP automation isn’t just about convenience—it’s about driving efficiency from day one. With a simplified setup process, your team can avoid the complications and errors that often come with more complex workflows. Instead of spending weeks or months learning the system, they can quickly get up to speed and start streamlining processes almost immediately.
On-the-go approvals - With mobile accessibility, approvals can happen wherever your team is, whether they're in the office, at home, or on the move. This means fewer payment delays, and your team can make timely decisions without being tied to a desk or waiting for approvals. The result? More agility in your operations, less downtime, and more room to focus on higher-value tasks that drive your business forward.
Faster payments - When you start processing invoices quickly and receiving timely approvals, your payment cycles become faster. This means you can take advantage of early payment discounts, improve supplier relationships, and free up your time for other important tasks.
Trend 5: Leveraging AI-Powered Technology
Trend 5: Leveraging AI-Powered Technology
A major trend set to dominate AP automation in 2025 is the integration of artificial intelligence (AI) and machine learning (ML). Unlike conventional approaches, AI and ML can automatically identify, extract, and process key information with minimal manual intervention.
The evolution from OCR-based data extraction to AI-driven processes is a testament to this shift. While Optical Character Recognition (OCR) was a significant step forward in digitising invoices and documents, it often fell short in handling inaccuracies and adapting to diverse formats. In contrast, AI-based data extraction leverages machine learning to intelligently interpret and process invoices, regardless of variations in layout, language, or complexity.
In fact, a WEX survey predicts that by 2025, over half of companies will have integrated AI into their AP processes, marking a pivotal step in the journey towards smarter financial operations.
How does it benefit you?
Accurate data extraction - When AI understands complex and varied invoice layouts and extracts accurate information, you reduce errors and spend less time double-checking numbers. Your workflows become faster and smoother, allowing your finance team to focus on strategic priorities like cash flow management or planning for growth.
Managing high invoice volumes- As your business scales, handling increasing invoice volumes won’t mean adding more resources. AI adapts to growth effortlessly, ensuring your operations remain efficient.
Want to remain competitive in 2025? Consider these trends when optimising your AP processes to reduce inefficiencies, enhance security, and empower your finance team to focus on strategic business growth. Now is the time to evaluate your current AP solution and identify the right provider for your business.
Download our detailed checklist for choosing the right AP automation provider.
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