Artificial intelligence gets awful staff cost reports

Artificial intelligence gets awful staff cost reports

AI platforms mark costs from first-class airline tickets to strip clubs, according to AppZen.

Guns and bullets. Fun without a bullet. Nail salon tours, jewelry and hangover amenities. These are among the costs of staffing costs for their companies, according to AppZen, a financial software provider.

You have to give them, employees are definitely creative in their idea of ​​what business costs are. Businesses process an average of 100,000 expense reports and 700,000 invoices a year, which means suspicious costs fall through the cracks, according to AppZen The State of Business Sppend report for Q4 2022.

The problem is that most of today's invoice automation systems can look out for two invoices with the same invoice number, or the same amount, and stop paying Which is like a duplication, according to AppZen. But they don't look for typos in invoice numbers, duplicates over cost and AP systems - or, ahem, interesting things that employees report to their employers.

VIEW: Artificial Intelligence: Artificial Intelligence (Free PDF) (Tech Republic)

"There's nothing to worry about. It's just what goes through - that's what amazes me - how long people can take," said Anant Kale, CEO AppZen.

Companies spend an average of $ 4,134 on a high-risk expense report, which includes out-of-policy items or merchants, or unreasonable receipts.

Artificial intelligence can be a panacea, Kale said, and an AI-rooted system can analyze 100% of expense reports and invoices.

Index

    Other accounts payable gotchas

    Some of the most striking examples of AppZen scams, errors, and fraud found in AP spend in the last quarter are:

    • Prohibited suppliers - invoices sent from a supplier banned by the federal government

    • Overheads - charges for main service of unordered web conferencing

    • Duplicate invoices - the same invoice sent to different departments in the same company

    • Double payments - monthly office space rent paid out twice through cost reimbursement and again by invoice

    • Fraud - fake supplier invoice with residential address

    • Contracts expired - a strategic contract that expired nine months ago.

    Going into consumption habits

    Kale is a movement that sees more of the groups of people exhibiting similar behaviors. "If one buys bags from Walmart and spends that…" I see such a move happening where if this is not stopped immediately, it will continue to grow and the skies are the norm. highest. ”

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    Another issue is that every company has its own culture and policy on what an employee and supplier should do when submitting a cost or invoice report and what is allowed, he said.

    "We've seen a big disconnect between the two. The policy says one thing, but the company is not pushing it," Kale said, depending on the type of business. “I find that employees expect some things to be okay from company to company. ”

    A system with rooted AI will show analyzes and the fact that two out of 10 in a team tried to buy things that they should not have bought, for example, he said.

    "When you give this information to managers, they are talking about behavior that needs to change," he said.

    AppZen data comes from 1,500 companies in 35 countries and in various direct platforms that use its platform, including Amazon, Facebook, Novartis and Airbus, he said.

    The AppZen platform uses natural language processing and language enhancement to determine if an submitted cost is “non-compliant or someone is just trying to fit,” Kale said. "Our technology can capture that and determine if there is a risk associated with that cost."

    Because the data that a manager or accountant receives for payment is unstructured - meaning it is a contract, invoice or receipt, it is expected that people will know what to look for in a business. and the background before they become "rubber stamp licensees," he said. said.

    People simply do not have time to look at all these data points, Kale said. “Our goal is to eliminate workload and human interventions and when a problem is found, it is identified. ”

    On average, 90% of the transactions that AppZen sees are not wrong, he said.

    While changing by company, Kale said the AppZen platform can reduce company reimbursement spending by up to 5%.

    See also

    screen shot-2022-01-21-at-1-18-19-pm.png

    AppZen has built a machine learning platform for financial departments that allows customers to review everything from invoices to expense reports.

    Image: AppZen

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