[Editor’s Note: Ardent Partners recently published its Accounts Payable-themed report, “Accounts Payable 2024: BIG Trends and Predictions”. Over the next few weeks, this site will feature articles highlighting the key discussion points from the report.
In 2024, the fifth year of the new decade, the accounts payable (AP) landscape continues to undergo broad, sweeping changes, driven by the events of recent years marked particularly by the global pandemic, unprecedented inflation and rising interest rates, supply chain disruptions, and lingering economic uncertainty. As finance and other business leaders forge ahead into 2024, it is evident that these market events drove a major shift in perceptions regarding the accounts payable process, greatly aided by the resilience of the many AP teams who ensured stability and delivered a real financial impact. In the wake of recent events, businesses have come to a resounding realization — a robust AP operation can be a strategic powerhouse capable of delivering tangible value, enhancing bottom-line performance, and optimizing overall operations. The evolving landscape underscores the imperative for organizations to recognize and leverage the strategic potential embedded within their AP functions.
Over the next two weeks, we’ll feature the BIG trends in accounts payable followed by equally BIG predictions for 2024 that will help AP, P2P, and finance professionals understand the key issues at hand and better prepare them for the year ahead.
Prediction #4 – Smart AP Teams Will Develop Guidelines and Frameworks for AI Usage and Impact
The heavy focus on AI that exists within many enterprises is and will continue to be overwhelming for many. The ridiculous (at times) levels of hype around this technology and its potential impact must be balanced with governance and controls. In 2024, AP teams that are considering new ePayables solutions will work to identify specific use cases for AI that also include quantifiable objectives. They will also follow the lead of their IT organizations and start establishing robust protocols and standards on how AI will be used, by whom, and to what extent. The guidelines and frameworks that emerge from these exercises should be adaptable in their design and have a goal of empowering teams to harness the full potential of AI technologies while establishing the proper checks and controls so as to avoid major issues.
Prediction #5 – More Supply Chains Will Shift Away from China
In 2024, the global supply chain will continue to evolve. For many Western companies, this will mean a shift away from China. In fact, there have already been several high-profile instances of world-class corporations moving into new regions, such as Apple’s major entry into India and the continued growth of the Eurasian belt just west of China. As East-West tensions continue to simmer, more businesses will make major moves away from China and into new regions. To help facilitate these major shifts, AP teams will need to proactively engage the internal decision-makers driving these changes to prepare their teams to seamlessly manage the new suppliers and any applicable (and potentially complex) invoicing mandates/requirements.
Prediction #6 – P2P Teams Invest Aggressively in Fraud Prevention Technology
The global pandemic emboldened fraudsters at a frightening pace and Ardent Partners 2023 research showed that fraud attempts targeting the procure-to-pay process (and invoicing and payments specifically) hit an all-time high. Fraud has become a serious, lasting threat and the current risk landscape demands a proactive stance against sophisticated fraud tactics. As a result, P2P teams will be stepping up in greater numbers than ever before to combat it with new technology investments in 2024 and beyond. The entire P2P journey, from procurement to payment, is susceptible to various forms of fraudulent activities, including invoice manipulation, fictitious vendor schemes, and unauthorized access to payment channels. Investing in robust fraud prevention technology helps safeguard against financial losses while helping to maintain the integrity of the entire P2P ecosystem.
Implementing advanced technologies, such as machine learning algorithms and anomaly detection systems, detect irregularities and patterns indicative of fraudulent activities in real- time that would not be identified by manual inspection. Beyond avoiding financial losses, successful fraud prevention builds trust with suppliers, enhances regulatory compliance, and safeguards the reputation of the organization. The investment in cutting-edge fraud prevention technology is a critical component of a robust risk management strategy, as it strengthens the resilience and credibility of AP and P2P processes in the face of a rising tide of fraudulent threats. It should also be noted that a move to eInvoicing can be a significant deterrent to fraud as it greatly increases the control over the invoice receipt and approval processes.
