Welcoming change: Keys to successful AI implementation in AP

Wende Burgess, Associate Partner at CCP Global, joined us at AppZen on Tour in Dallas to share her expert perspective on the critical change management strategies finance leaders need when implementing AI for accounts payable teams, especially for complex global deployments.

Finance leaders constantly seek ways to improve processes, reduce costs, and gain valuable insights from data. Artificial Intelligence (AI) promises to deliver on all these fronts, transforming the traditionally manual field of finance into one of efficiency and innovation. Its adoption in accounts payable (AP) is quickly moving from a luxury to a necessity.

A recent Gartner survey revealed that 90% of CFOs plan to increase their AI investments soon, while the remaining 10% plan to maintain current investment levels. This shift is reflected in broader market predictions, which forecast significant AP automation growth—estimates range from $10 billion to $24 billion over the next eight years.

Despite the clear benefits and growing adoption rates, implementing AI in AP comes with its own set of challenges. Chief among these is the human element: Change Management.

Why might AP be resistant?

Change is a constant in the business world, yet it's something many resist. This resistance is particularly pronounced in AP departments, where manual processes have been the norm for decades. Many AP professionals have performed their jobs the same way for 20, 30, or even 40 years. They're comfortable and proficient with current systems, and the prospect of altering their routines can be daunting.

This reluctance presents a significant hurdle when introducing AI-driven solutions designed to streamline processes and increase efficiency. Finance leaders must help their teams recognize that change in AP benefits them personally and that learning a new technology has a significant payoff. The key to successful AI implementation lies in effective change management.

Why is this change necessary? 

For decades, AP departments have grappled with many persistent issues that hamper efficiency and scalability, despite the number of automation tools on the market. For example, today's stakeholders demand instant access to financial data, driving the need for real-time reporting and analytics. Vendor relationships have also taken center stage. Timely payments and transparent communication are critical for maintaining a competitive edge in uncertain markets.

Here’s how AI can help.

Data accuracy

Manual data entry leads to errors that ripple through the entire financial system, causing reconciliation headaches and potential compliance issues. AI significantly improves data accuracy and consistency. Machine learning algorithms can extract and interpret invoice data with far greater precision than traditional OCR systems, significantly reducing manual corrections. By streamlining processes and minimizing errors, AI also helps lower the overall cost per invoice processed.

Touchless automation

AP staff often spend countless hours on repetitive tasks like invoice matching and data entry. This approach leaves little time for strategic work. Touchless AI automation, or autonomous processing, significantly reduces time-consuming manual tasks, eliminating entire chapters of a team’s standard operating procedures. For example, AI can handle routine tasks like three-way matching and approval routing, freeing up AP staff for higher-value activities.

Improved visibility

Lacking up-to-the-minute data, AP struggles to provide accurate cash flow forecasts and identify opportunities for early payment discounts. AI systems are fast, providing valuable, real-time insights and reporting capabilities. AI can also quickly validate vendor information against multiple databases, reducing the risk of fraud and ensuring compliance.

Increased scalability

As transaction volumes grow, AP departments reliant on manual processes must expand (or outsource) teams to keep up with the workload. AI allows teams to handle increased workloads without proportional staffing increases, saving time and further speeding up the process.

The human element is foundational.

Implementing AI in AP isn't as simple as flipping a switch. It requires a well-crafted change management strategy that focuses on the human element. Many AP professionals remain skeptical, having been burned by traditional OCR solutions that failed to deliver as promised. For others, the prospect of change itself is daunting, especially for those who fear AI might threaten their job security. Addressing these concerns is crucial for successful adoption.

This is the change management framework you need.

For effective change management, it is beneficial to use a framework that addresses all aspects of the process.

Prepare: Create awareness and readiness for change. Ensure everyone knows what’s coming and why.

Inform: Set clear goals and expectations

Engage: Manage resistance and impacts during implementation. Actively involve employees in the change process.

Enforce: Ensure compliance and address any deviations from the new processes. 

Sustain: Drive and maintain adoption over time. Sustain action to maintain momentum.

Effective change management strategies help maximize AI's impact.

Realizing the full potential of AI hinges on effective change management. The following strategies can help you navigate the transition to AI-powered AP processes, ensuring buy-in from employees and maximizing the technology's impact.

Preparation

Preparation is the first step in any successful change management strategy. Employees should not encounter these changes for the first time during the testing phase. They need to be aware of what’s coming well in advance and should understand the objectives and benefits of any new tools.

Leadership support

Leadership support is crucial during this phase. It's not enough for leaders to announce the change; they need to actively participate in educating and supporting their teams throughout the process. This involves providing necessary staffing support and resources, demonstrating unwavering commitment to change, and continuously communicating to help employees adapt to the new technology.

Build a change advisory board

Assemble a diverse group of stakeholders from departments affected by coming changes, as well as a group of "change champions" who understand the technology, are enthusiastic about it, and can help promote it to their colleagues. A change advisory board acts as a strategic advisor and can provide valuable oversight and guidance throughout the implementation process. These individuals will help bridge the gap between the project team and end-users, ensuring that concerns are addressed and benefits are communicated. The change management team should be involved from the earliest stages of the project, not just during testing or implementation.

Communicate early and often

Provide frequent updates on the project’s progress. Offer training opportunities throughout the implementation process to familiarize employees with the new technology. If employees hear about a change only once and then experience a long delay before its implementation, they may forget or feel unprepared. Regular updates and continuous dialogue, with open forums for questions and concerns, help maintain momentum and keep everyone informed and engaged. A continuous flow of information helps demystify the new technology and build confidence.

Implement a clear roadmap

A well-defined implementation roadmap helps manage expectations and keeps the project on track. Create a clear, phased plan that includes pilot testing. “Roadshows,” where the product is demonstrated across different parts of the organization, can be particularly effective in building comfort and familiarity with the new tools. Include feedback sessions to gather input and make necessary adjustments. This approach allows for course corrections and helps build momentum as successes are demonstrated.

Effective change management strategies are crucial for a successful AI deployment. AI solutions must overcome the reasonable skepticism of AP staff by demonstrating their reliability and effectiveness. Allowing AP teams to spot-check processes initially can help build trust. As employees become more comfortable and see the benefits of AI, they will gradually relinquish manual tasks, allowing the technology to handle routine work. The goal is not to replace employees but to augment their capabilities, allowing them to focus on more engaging work and develop new skills.

Overcoming resistance to change requires a proactive approach.

Even with a solid change management strategy, resistance to change is natural and should be expected. The key is to address it proactively. Rather than dismissing concerns, acknowledge them and develop a plan to address them. This might involve explaining how the new technology will improve current processes without eliminating jobs or addressing specific data security and privacy concerns. Listen actively to concerns raised by AP staff. Develop action plans to address valid issues, and be transparent about how these concerns are being tackled.

Here are some common concerns and how to address them:

Data security and privacy

Clearly articulate the safeguards and compliance measures that protect sensitive financial information. Note how AI can improve data protection through advanced fraud detection and compliance features.

Data migration challenges

Develop a comprehensive plan for transferring existing data into the new system, ensuring historical information remains accessible and accurate. Acknowledge the complexity of data migration but highlight how AI solutions often come with tools and support to streamline this process.

Cost management

While AI requires an upfront investment, improved efficiency, reduced errors, and strategic insights provide long-term cost savings. Demonstrate the return on investment (ROI) through case studies, pilot program results, and cost-saving projections.

Employee skill development

The human element remains crucial in an AI-driven AP function. Focus on "retain and retrain" strategies that empower AP staff to evolve alongside the technology, rather than being replaced by it. AI is a powerful tool for enhancing human capabilities. Show how AI will automate routine tasks, allowing AP professionals to redirect their efforts toward developing new skills and taking on more strategic initiatives.

Integration with existing systems

Highlight the flexibility of modern AI solutions and their ability to seamlessly integrate with a wide range of existing ERP systems and other financial tools to minimize disruption.

Share the long-term vision for empowering AP teams.

Successful AI implementation, supported by effective change management, can transform your AP team from a cost center to a strategic asset. With AI handling routine tasks, AP professionals have more time for:

Data analysis: Uncover spending patterns, identify cost-saving opportunities across the organization, and contribute to strategic initiatives that drive business growth

Process optimization: Use AI-generated insights to streamline approval workflows and eliminate bottlenecks.

Vendor relationship management: Use data to negotiate better terms and strengthen key supplier relationships through improved communication and payment processes

Financial planning: Provide valuable insights like accurate, real-time cash flow forecasts to support critical business decisions

Compliance and risk management: Use AI-powered anomaly detection to spot potential fraud or policy violations before they become major issues.

Project managers play a critical role.

A successful deployment depends on having the right people in the right places. While project and change management may seem to be an area where you can cut back to save costs, this is the most important investment area. If your technology goes live but does so late or without the right communication or training, your deployment may not be successful. Especially with complex global deployments, having skilled project managers—rather than solely relying on in-house technical assets—ensures that the process is handled efficiently and effectively, keeping the project on track and within scope. Experienced project managers bring a wealth of knowledge in change management, stakeholder communication, and risk mitigation—critical skills for navigating the complexities of AI adoption across diverse global teams.

AI brings both challenges and immense potential. It offers AP professionals an unprecedented opportunity to elevate their roles through job enhancement. AP teams armed with AI-driven insights become true strategic partners within their organizations, driving value far beyond simple transaction processing.

Watch Wende’s presentation, recorded live at AppZen on Tour, Dallas.