Agents or No, AI or No — The AP function still has a job to do

The conversation among the enterprise tech community is changing fast.

Today, we hear not just about automation and AI but about agentic systems, reasoning chains, multi-agent workflows and even LLM-powered copilots that can handle your accounts payable (AP) process from end to end.

It’s impressive. It’s promising. But it’s also easy to get distracted.

Regardless of the interface, algorithms or automation claims, the AP function still needs to perform its job. And that job has not changed. It has to:

• Process invoices accurately
• Pay suppliers correctly
• Protect the company financially
• Ensure compliance
• Deliver value

Technology can help, but only if we stay focused on the work that needs to happen.

Let’s remember what AP is responsible for

The promise of AI and agents is real. But the responsibilities of the AP function have not gone away. Whether carried out by human teams, RPA bots or intelligent agents, the AP function still must:

1. Capture and digitize invoices — from any source:

• Email, EDI, PDFs, portals, mobile scans — AP needs to ingest invoices from multiple channels.
• Support for post-audit and clearance e-invoicing compliance models is critical across jurisdictions.
• Document digitization must include metadata extraction, supplier validation and template variability.

This is not about AI. It’s about having the right information, in the right format, at the right time to make a payment decision.

2. Validate and code what’s been received:

• Validation isn’t just a line-item match — it means checking structure, content, vendor identity, tax compliance and regulatory obligations.
• Coding must be policy-aware — GL accounts, project codes, item categories and more.
• Partnerships and integrations with compliance engines, tax logic providers and country-specific authorities must be embedded.

This isn’t about LLMs mimicking human logic. It’s about knowing the rules and applying them every time.

3. Match and approve with precision:

• Advanced AP includes two-way, three-way and even n-way matching with logic that considers quantity, price, tolerance, delivery status and exceptions.
• Dynamic approval routing based on roles, spend category, supplier type or exception type is table stakes.
• Collaboration workflows must allow internal and external (supplier-side) communication on issues.

This isn’t about automating approvals. It’s about enforcing policy while keeping suppliers engaged and informed.

4. Identify, categorize and resolve exceptions:

• Exceptions must be tagged, categorized and handled according to root cause — missing PO, price mismatch, tax discrepancy, duplicate invoice, etc.
• Modern AP must support exception dashboards, auto-resolution workflows and audit-ready justification.
• Supplier self-service and contextual collaboration are increasingly expected.

This isn’t just about flagging errors. It’s about resolving issues without breaking trust or compliance.

5. Orchestrate payments — safely and strategically:

• Invoice readiness isn’t the end — AP must support payment method choice, early payment programs, treasury visibility and approval-to-pay controls.
• Support for dynamic discounting, FX optimization and global bank file generation must be native, not afterthoughts.
• Payment scheduling must respect working capital strategies, not just due dates.

This isn’t about hitting ‘Pay Now.’ It’s about turning AP into a strategic lever for liquidity.

6. Report, audit and continuously improve:

• Reporting needs to cover more than invoice status — it must analyze cycle times, approval delays, exception rates, discount capture, supplier behavior and fraud risks.
• Systems must maintain a full, explainable audit trail from ingestion to payment.
• Advanced AP provides real-time insights, but also historical trends to inform finance and procurement strategy.

This isn’t about visual dashboards. It’s about measurable control, accountability and decision support.

Agents are welcome — But they are not the point

Let’s be clear. Agents can be helpful:

• They can classify and pre-process invoices.
• They can suggest approval paths or match logic.
• They can surface exceptions and suggest resolutions.
• They can trigger tasks across systems.

But:

• They do not decide what needs to be validated.
• They do not define policy thresholds.
• They do not own the financial or compliance outcomes.

Agents support execution. They do not replace responsibility.

A successful AP function isn’t one that ‘uses AI or AI agents.’ It is one that delivers value, regardless of their involvement.

The risk — Confusing capability with automation

Too often, the focus shifts to: “Is it agent-powered?” “Is it GPT-based?” “Can it summarize?”

But that question does not matter.

The pertinent question is whether the correct AP activities are being performed in the right way, with the right controls and achieving the right outcomes.

Automation without capability is just speed applied to a broken process.

Do not confuse AI or agents with operational maturity

Having AI in your workflow is not the same as having maturity in your operations. Adding AI will not fix the problem if:

• Your team still struggles to apply the right GL or tax codes.
• It cannot validate invoice details against contracts or PO line items.
• It relies on manual email threads to clear exceptions.
• It has no visibility into approval delays or discount capture.

AI will only mask the fact that the foundation is missing.

Operational maturity means you have defined, controlled and consistently executed each AP responsibility, regardless of how intelligent your interface looks.

So, how are you performing?

Forget the roadmap slides. Forget the demo sizzle.

Ask yourself:

• Are we performing the full invoice-to-pay cycle as it’s meant to be done?
• Are we doing it with accuracy, control and visibility?
• Are we enabling finance and procurement strategies, or just processing transactions?

Because at the end of the day: 

“The future is welcome. The function is non-negotiable.”

So, before you ask what tech is doing the work, ask how well the work is being done.

Up next week

We turn our attention to e-procurement still fulfilling its role in Agents or No, AI or No (Part 2) — Are you performing the full scope of the e-procurement function? 

More in the Finance-Procurement alignment series:

Strengthening cash flow management and liquidity

Visit our in-depth guide to aligning Finance and Procurement for wider coverage