Stampli, an innovative accounts payable (AP) automation startup, unveiled its latest advancement, Cognitive AI, at the Oracle NetSuite SuiteWorld 2024 conference in Las Vegas. This cutting-edge AI solution is designed to streamline the labor-intensive task of purchase order (PO) matching, traditionally a demanding responsibility for finance teams.
Cognitive AI combines large language models (LLMs) with structured business logic, offering a pivotal enhancement in financial automation. While other AI tools focus primarily on data matching, Stampli’s technology emulates the complex reasoning and decision-making skills of seasoned AP professionals, transforming PO matching processes for businesses.
Innovating Finance with AI
Eyal Feldman, CEO and co-founder of Stampli, expressed the distinctiveness of this innovation. With experience at SAP, he recognized early on the potential for merging structured and unstructured processes to achieve remarkable efficiency. Feldman asserted that this is the first instance of integrating a high level of human-like reasoning into financial software.
Stampli has positioned itself as a leader in AI through nearly a decade of refining AI-driven invoice processing. The company has accumulated a vast, secure dataset through extensive collaboration with finance teams, achieving an impressive growth rate of $85 billion annually. Feldman noted, “While many companies are just beginning to explore AI applications, we’ve devoted years to developing an architecture centered around AI.”
Tackling the PO Matching Challenge
PO matching is crucial for finance departments, particularly in midsize companies dealing with large volumes of invoices. Common discrepancies—variances in quantities, prices, missing deliveries, and tax misalignments—often require hours of manual resolution.
Feldman detailed the complexity inherent in accounts payable workflows: “Accounts payable is a collaboration, not just an approval process. Teams must determine what was ordered, what was received, and how to allocate costs.” This collaborative aspect drives Stampli’s automation approach.
Many existing PO matching tools rely on proximity algorithms that achieve success rates of only 20-40%. In contrast, Stampli’s Cognitive AI automates the process almost entirely, reaching a remarkable 97% success rate in controlled tests, with potential for further improvement as real-world data accumulates.
Real-World Impact
Matt Andersen, CFO of Superior Masonry Unlimited, shared his experience: “The AI matched 100% of every detail across 22 invoices, even those spanning multiple pages. It took me just 15 minutes to review everything, compared to the days my team would typically spend processing them manually.”
Nini Johnston, VP of Treasury at Modigent, highlighted the productivity boost from adopting Cognitive AI, stating, “Without Stampli, we would have needed to hire five additional employees to manage invoices.”
Addressing Finance Labor Shortages
The launch of Stampli’s Cognitive AI comes at a pivotal time, as a June 2024 report from the U.S. Bureau of Labor Statistics revealed a labor shortage in the finance and insurance sector, with 308,000 job openings and only 132,000 hires. Automation solutions like Cognitive AI enable finance teams to enhance productivity without increasing headcount.
Andersen emphasized this advantage, asserting, “As a CFO, I need my team to focus on strategic growth, not on basic tasks. AI can handle those, allowing us to innovate.”
Feldman elaborated on Stampli’s core innovation: “We transformed the invoice into a centralized hub for conversations, documents, and approvals.” This model simplifies the traditionally fragmented workflow of accounts payable.
Availability and Future Developments
Stampli’s Cognitive AI for PO Matching is currently available as an add-on for users of Oracle NetSuite, Sage Intacct, and SAP, with additional integrations set to follow. The company plans to extend Cognitive AI into more areas of finance operations, harnessing its deep expertise in automation.
An online demonstration is scheduled for September 18, 2024, giving potential customers an opportunity to see the system in action. Interested parties can request invitations via Stampli’s website.
With the launch of Cognitive AI, Stampli reinforces its mission to optimize financial processes. As businesses increasingly navigate the complexities of accounts payable, this solution emerges as a vital tool for modern finance teams seeking greater efficiency and reduced manual workloads.
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