The Current State of AI in Accounts Receivable
GUEST POST by: Brandon Spear (CEO of TreviPay)
Accounts receivable (A/R) is commonly regarded as a manual, slow and resource-intensive administrative process. Matching receipts to ledgers and reconciling payments takes time away from the important tasks of analysis and planning. Now that AI has entered the chat, A/R is transitioning from a reactive process into a predictive powerhouse.
According to an industry study, nearly 85% of firms rely on partially manual A/R operations despite evidence automation improves cash-flow predictability and reduces days sales outstanding (DSO) by double-digit percentages. Businesses who have moved beyond basic digitization in the back-office are seeing measurable returns, including faster payment cycles, lower write-offs and more efficient use of the finance team’s talent.
A/R modernization isn’t only about adopting technology. The deeper change is a mindset shift from finance leaders to view receivables as a strategic driver of growth, customer loyalty and working capital efficiency, rather than a cost center.
Putting buyer preferences first
Suppliers who align with how their customers buy, such as offering flexible payment terms, delivering invoices in the buyer’s preferred format and integrating seamlessly with procurement systems, are rewarded with stronger relationships and repeat business. Offering trade credit remains one of the most effective loyalty tools in B2B commerce.
AI-enabled A/R strengthens that alignment further by minimizing friction at every step. Intelligent or zero-touch systems can automatically reorder invoice data to match a buyer’s purchase order template or validate the correct billing entity is used. These seemingly small adjustments can prevent rejections and payment delays that, across millions of transactions, can materially affect working capital.
Grounding innovation in B2B buyer needs like this was a main takeaway from a recent payments salon in NYC. As a global customer experience leader shared on a panel, “So many transformation efforts and technology optimizations do not get maximized in part because they didn’t put the people they serve at the absolute center and build around them.”
The impact is both operational and relational. When suppliers remove barriers to payment, they become easier partners to do business with, which directly expands share of wallet from their most valuable customers.
Why are late payments so costly to companies?
Payment terms vary by industry, but delays consistently extend beyond expectations. For example, retailers may negotiate 120-day terms while manufacturers operate closer to 60-90 days with their buyers. Shockingly for 86% of businesses, up to 30% of their monthly invoiced sales are still overdue. This issue can severely impact cash flow as it disrupts operational efficiency and can lead to financial instability.
While late payments are inconvenient, they represent real cost. With elevated interest rates, each delayed dollar increases the cost of capital and constrains growth investments. When we begin working with new clients, it’s common to see 20-30% of receivables more than 30 days past due. With intelligent A/R processes in place, that number can drop below 3%. The improvement stems from accuracy at the source: ensuring invoices are complete, correctly formatted and routed to the right destination. This reduces downstream disputes, accelerating payment and strengthening forecasting reliability.
AI also helps identify early indicators of customer distress. For example, a round-number payment ($5,000) on a non-round invoice ($8,798), or a shift from ACH to paper checks, often signals cash-flow pressure. Customers are delaying payment. When systems flag these patterns automatically, finance leaders can act pre-emptively to tighten credit exposure, adjust payment plans or re-prioritize collection efforts.
How can companies shift their mindset to leverage A/R automation?
The shift begins by reframing automation as a growth enabler, not only a cost-reduction project. Intelligent A/R allows finance teams to leapfrog competitors by learning from aggregated transaction data across industries and regions, improving continuously through each cycle.
Many finance teams hesitate to modernize because A/R is perceived as routine back-office work, even though it directly influences customer experience, retention and capital efficiency. McKinsey research shows companies integrating predictive analytics into order-to-cash processes improve working capital efficiency by 30% or more in a matter of weeks.
Heading into 2026, some practical steps for finance leaders should include:
· Integrate A/R systems with key buyers to ensure invoice formats and data structures align before delivery
· Automate credit-risk monitoring with behavior-based scoring to identify at-risk customers early
· Track operational metrics, such as DSO compression, percentage of invoices paid on time and reduction in manual touches to quantify return on automation
In today’s environment, where every day of working capital counts, intelligent or zero-touch A/R automation provides an essential layer of predictability. We’ve outgrown manual, slow and resource-intensive processes thanks to tech innovations. Getting A/R “right at the source” is the foundation for cash-flow stability. It enables companies to collect what they’re owed on time, every time, while freeing finance talent to focus on growth initiatives.
About the Author: Brandon Spear leads TreviPay with expertise in managing large, diverse global teams.
His strength is discerning and focusing on the most important challenges facing an organization at a particular point in time and unifying all stakeholders behind accomplishing a set of specific goals.
Brandon has a unique ability to connect across all levels of an organization, motivate staff with diverse skill sets, while ensuring a common alignment and results.