[Editor’s Note: Ardent Partners recently published its Accounts Payable-themed report, “Accounts Payable 2025: BIG Trends and Predictions”. Over the next several weeks, this site will feature a series highlighting the key BIG Trends and Predictions from the report.
As we step into 2025, the world of Accounts Payable (AP) is poised for a transformative year, driven by the accelerating forces of artificial intelligence (“AI”), advanced automation, and the growing recognition of AP’s potential to deliver measurable operational and financial impact.
Since the pandemic began, AP has emerged as a strategic cornerstone for businesses looking to streamline operations, enhance cash flow management, and bolster profitability. AI-powered solutions are helping to redefine the function; the need for smarter cash management and stronger supplier relationships are also aiding the cause.
In this new age, smart executives have identified AP as an area of investment and a lever for driving strategic value. This attention has empowered many AP teams to move beyond transactional tasks, embracing roles that directly influence financial performance and operational excellence.
This Week’s BIG Trend and Prediction
BIG Trend #6 – To Have and Have Not: A Poem and Trend about AP Teams in 2025
Two roads diverge in the AP industry,
One paved with tech, the other, stuck in history.
The “Haves” blaze forward, their future is bright,
While “Have Nots” falter, their goals out of sight.
The “Haves” scan with the greatest of ease, their invoices gleam,
AI-driven insights, a futuristic dream.
Workflows hum over a symphony of data,
Efficiency soars, a powerful new era.
Their dashboards glow with the metrics that matter,
Costs decrease, exceptions dwindle and scatter.
Fraud detection alerts from intelligent systems,
A future of efficiency, a promising vision.
But down the dusty path, the “Have Nots” trudge,
Their visibility, a murky, dank sludge.
Mired in paper, approvals flow slowly,
Inefficiency lingers, draining them wholly.
No AI guidance, too many hands in play,
A lack of automation leads to executive dismay.
Fraud undetected, a time bomb unseen,
Without the right tools, they’re stuck in poor routines.
In twenty-five, the AP gap will certainly grow,
The “Haves” continue to lead, their successes overflow.
Yes, AI will help define the new Best-in-Class,
While the “Have Nots” will linger, still stuck in the past.
Prediction #6 – Treasury and IT Incorporate Vendor Payment Data into Cash Management Dashboards
In a high-interest rate environment, the timing of supplier/vendor payments impacts financial performance. For many years, Ardent Partners has argued that AP should have a dotted reporting line into Treasury (or the cash management function at smaller businesses) to fully optimize its supplier payment strategy. In 2025, Treasury leaders will work with IT to incorporate invoice and vendor payment data into cash management dashboards.
The combination of AP and Treasury data will be powerful. By incorporating invoice due dates, payment terms, early payment discounts, and historical payment patterns along with cash flow forecasts, interest rate data, and available liquidity, payments can be scheduled in a way that strengthens the company’s financial position.
While payment scheduling can be partially automated using algorithms that consider factors like invoice due dates, discount opportunities, cash availability, and predicted cash inflows, human oversight will be needed to ensure alignment with business priorities. This improved cash flow visibility will enhance liquidity management, reduce borrowing costs, and improve profitability.
AP 2025 BIG Trends & Predictions (Part 7): Next week we’ll explore a new trend and prediction — Global Invoicing Complexity, Part 1 and Many CFOs and Treasurers Contemplate Cryptocurrency, respectively.
