AP Automation is What Exactly ?
Fleetcor Acquires Roger.ai Prompting this question…
Automation? As the graphic above points out it is when a system moves faster than a human doing the same activity. OK, so are Automation and AI the same thing?
No, but I do want to put forth some clear definitions so when you look at an “automation” project you clearly know if it is AI or RPA (Robotic Process Automation) or maybe machine learning, they are all different and all important but the terms get misused.
A friend from MIT once described RPA to me as a software program that pushes the buttons on another software program. That makes sense, it does not “think” it is literally saving a person from clicking a button. Which at first blush seems like no big deal, but think about how many times per day an accountant actually pushes the same button multiple times and suddenly it is obvious how much value can be derived from this seemingly simple technology.
The RPA definition from NICE-Actimize is as good as any I have seen
(RPA) is the use of software “robots” (i.e., specialized computer programs) to standardize and automate repeatable business processes. RPA robots perform the same way every time.
There is a version of RPA that still requires human intervention followed by RPA with digital triggers. These are process driven as compared to the move up in functionality to Machine Learning and then onto Artificial Intelligence. These as the diagram shows to the left, Data Driven. Also note the axis showing a move from Doing to Thinking.
‘RPA is a software robot that mimics human actions, whereas AI is the simulation of human intelligence by machines.’ from the website www.cfb-bots.com
Before we put this into context let’s also make a note of something I learned long ago in any automation program. These programs get approved based on one key thing:
Reducing Labor Costs
Everyone will say, we are automating to achieve better outcomes, faster blah blah and accuracy and yada yada. But I have never seen an RPA or Automation program get approved without showing it being “paid for” by a reduction in labor costs. Right about now everyone with the word Accounting in their title is rightly losing their S…. about the fact that “ We are already over-worked and not meeting our monthly/quarterly goals”.
I hear ya, I really do as a matter of fact according to a survey in 2019 from TD Bank and Strategic Treasurers:
“Over 1/3 of treasury groups can’t perform all of their duties”
In the same survey of finance professionals you can probably guess the top two issues they need to address:
- 57% said Manual Processes
- 43% said Staff Capabilities and/or Size
Finance professionals know that their staffs cannot handle their current manual processes and yet in the same survey of the same finance professionals only 25% of respondents are or will be using AI within 2 years. So you can see the issue, tools being available to address the top issues does not mean the tools get used.
Segueing to Fleetcor acquiring Rogers.ai and why that matters.
This move takes Fleetcor further away from their previous core of Fleet payments, the name might need to change….but I will cover that in a separate blog. This allows Fleetcor to actually live up to this bold statement from their website:
“FLEETCOR is not only at the forefront of technology — we’re shaping the future of business payments with innovative products, sophisticated automation, and secure processing. We give businesses a better way to pay.”
Many companies say things like this and then throw legacy technology at the problem, so full credit to Fleetcor admitting they can’t build everything in house to deliver on this lofty goal. I don’t do product reviews here, I do strategic reviews but as someone that started his career as a controller for a small business if Roger.ai actually delivers on this promise…
“Stress-Free Year-End Closing for Small Businesses”
Then I am sold. Period ending, monthly or annual has been an accounting headache as long as there has been accounting.
Most folks don’t know that is what Bob Cratchit was doing on Christmas Eve for Mr. Scrooge. (unverified but likely)
I am so excited to see a legacy company like Fleetcor reach into the cash/stock reserves to acquire a company doing some real AI to automate AP. This aligns perfectly with my thesis of “Outsourced R&D.”
Legacy companies can not afford to do actual R&D, nor would they know how, but they can shop for and acquire actual innovative solutions.
Congratulations to both Fleetcor and Roger.ai, which the name would not lead to believe but is a Female co-founded tech company.
Please check out Catherine Anderson the CEO / Co-founder as she has an impressive and eclectic resume: https://www.linkedin.com/in/cathrineandersen/
