As I reflect on the findings from the 20th annual State of ePayables Report, one theme rises above all others: Accounts payable is still on an unfinished journey. That phrase (our report’s subtitle) is more than a neat summary. It captures a truth I’ve witnessed across two decades of studying, benchmarking, and advising AP and finance teams around the world. We have made undeniable progress since the early days of this research, yet the distance left to travel remains vast, and the opportunities ahead even greater.
The good news is clear: approximately 70% of businesses now view their AP teams as valuable or exceptionally valuable assets, a dramatic shift from where the profession once stood. AP has earned this seat through a combination of modernization, operational rigor, and meaningful alignment with broader procure-to-pay processes. But despite this acknowledgement, the ambition and operational maturity in many organizations have not yet caught up to the function’s potential.
Paper Persists, but Relationships Are a Necessity
The single most persistent (and frankly, still surprising) finding is the enduring presence of paper and manual processes. Even after years of proven ROI, automation remains uneven. We’ve measured the financial and operational gains that come from automated invoice receipt, electronic workflows, and modern payment platforms. The value creation is quantifiable and repeatable. And yet a fully automated AP operation is still the exception rather than the rule.
The pandemic, for all its disruption, at least served as a forcing mechanism. Remote work exposed every brittle, paper-bound process. It created momentum. But not enough. The next stage of AP’s evolution will require intentional investment, multi-year planning, and the willingness to run AP like a strategically aligned business unit rather than a back-office necessity.
A powerful example of AP’s expanding strategic reach is what we call the “power couples” of B2B payments. Two relationships stand out. The first is AP and procurement, an alliance that has matured significantly as organizations increasingly recognize the power of invoice and payment data. Suppliers experience your company through a single lens. Any friction (e.g., late payments, mismatched invoices, lack of visibility) directly affects their willingness to perform and their appetite to partner. Procurement depends on AP’s accuracy and insights to manage supplier relationships, shape sourcing decisions, and reduce operational risk.
But the second relationship of AP and treasury is perhaps even more underappreciated and consequential. AP is, in nearly every organization, the primary disbursement engine, responsible for the single largest cash outflow category other than payroll. At a time when the cost of capital is real, and every CFO is reevaluating liquidity strategies, B2B payments have become a strategic lever. Precision matters. Timing matters. Payment optionality matters. A collaboration between AP and treasury is no longer optional; it’s a requirement for organizations seeking financial agility in a high-interest, high-volatility environment.
AP as Gatekeeper to Operational Insights
The report also underscores a disconnect between AP teams’ potential influence and where many currently operate. AP holds the keys to operational data, supplier performance signals, cash-flow insights, and compliance safeguards. Yet, far too many teams remain outside of strategic conversations that depend on precisely that information. The opportunity to expand AP’s organizational footprint has never been greater.
One area poised to accelerate this shift is artificial intelligence (AI). Adoption is happening at a pace we have never seen with traditional enterprise software. Nearly half of AP departments are using AI today, and another third expect to do so within 12 months. Why? Because AI is being embedded natively into the same systems teams already rely on to receive, process, and pay invoices. Its impact will begin modestly, such as automating tasks, reducing exceptions, improving accuracy, but over time, AI will help rewrite the foundations of P2P execution. Like the early internet, it will underwhelm in the short term but overdeliver wildly in the long term.
AP’s future is bright. But the journey is far from complete. For the organizations willing to rethink AP as a strategic function (and equip it with the technology, integrations, and cross-departmental alignment it deserves) the next decade will redefine what value creation in AP truly looks like.
