[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 #10 – Another Rollercoaster Year Ahead
It is said that in business “change is the only constant.” In 2025, fast and extreme change will become the norm, as rising market volatility is expected throughout 2025. It will be driven by several global factors like geopolitical instability (see BIG Trend #9), drastic policy changes (e.g., tariffs or sanctions), and the continued increase in supply chain disruptions. These and other factors will contribute to unpredictable shifts in specific markets and the overall economy. Adding to the volatility “bouillabaisse” will be economic uncertainties, such as inflationary pressures and interest rate changes, but particularly the threat of recession in key economies during the second half of 2025 — fostering even more instability. Companies will face even greater challenges in managing costs, forecasting demand, and navigating unpredictable market conditions.
A market characterized by extreme swings forces businesses to adapt quickly to stay competitive, and AP teams will continue to play a role in helping organizations manage financial risk and maintain operational stability. This type of market creates several unique challenges and opportunities for AP teams such as: unpredictable cash flow management, increased vendor management complexity, heightened risk of fraud and errors, supply chain disruptions, and fluctuating currency exchange rates.
Prediction #10 – A Series of AI “Malfunctions” Will Create a Wave of Panic and Calls for Regulation
In 1983, WarGames, an American techno-thriller film, introduces audiences to many new technology concepts, including computer hacking, IT security, and early-stage AI decision-making. In the movie, false data and AI simulations bring the U.S. to the brink of thermonuclear war, before it is averted by a plucky high school student (played by Matthew Broderick).
In 2025, several costly AI “malfunctions” will capture the headlines and send global businesses, consumers, and investors into a deep-set panic. The malfunctions will not be catastrophic, “end of times” types of events, but rather patently obvious mistakes with detrimental and ill-effects for a subset of users or stakeholders. Nonetheless, the market’s response to them will be drastic, causing a major plunge in technology stocks and the overall market. These malfunctions will serve as a clear reminder that powerful AI capabilities need to be monitored, managed, and audited regularly. In the immediate aftermath of these events, politicians around the world will begin drafting legislation around AI usage controls and penalties for its misuse.
AP 2025 BIG Trends & Predictions (Part 11): Next week we’ll explore a new trend and prediction — The War for Next-Gen AP Talent Heats Up and “Fake” Data: The Fool’s Gold for AI Users, respectively.
