Section 6: Role of Artificial Intelligence in Invoice Management
1.Cognitive Data Capture: Let us consider the very first step of an automatic invoice management system.
This step involves converting the text into a machine readable format followed by recognizing and extracting data from the document. A large organization can receive a number of invoices from different suppliers, each having a different format.
If a rule based system is employed, we would have to manually specify all of these different formats. An alternative solution is to build an AI system that can learn to extract data automatically from any given template. This process is termed as cognitive data capture.
2. Invoice Fraud Detection:
In large organizations, an invoice fraud can occur when suppliers charge for services that were never performed, overcharge for certain services or supply duplicate invoices. Although these amounts may seem insignificant, they will eventually add up and cause huge losses in the long run.
An AI based fraud detection system can help your organization by accurately extracting the data from within the invoice and matching it against the corresponding contract. Although some variation is expected, if an invoice is 30 percent over the purchase order, then a red flag is raised.
Let’s consider a practical use case. An analytics firm, Vocalink Analytics partnered with Natwest (National Westminster Bank) to develop a fraud detection system – ‘Corporate Fraud Insights’. The system aims to prevent invoice redirection fraud. Invoice redirection frauds try to get businesses to pay funds into a fraudsters account instead of the suppliers bank account.
Vast amounts of data are leveraged to build models for fraud detection. According to Gary Kearns, Executive Vice President of Vocalink, the model analyzes behavioural signatures that are left behind each time an invoice is processed. By analyzing these signatures and the signatures of historical frauds, a red flag is raised whenever the model identifies suspected incidents of fraud. (Source: https://www.rbs.com/rbs/news/2018/04/natwest-teams-up-with-vocalink-analytics-to-help-protect-corpora.html )
Looking to automate the mundane & mechanical Invoice Management process? Try Nanonets™ AI-based OCR solution to automate Invoice Management in your organization!