The reason? It’s because, historically, the accounts payable (AP) function for many enterprise buyers has been riddled with inefficiencies ranging from segregation of duties to manual reviews and after-the-fact audits. That has traditionally left suppliers in the lurch.
Late payments, unclear invoice statuses, and slow dispute resolution erode goodwill even when pricing and volumes are competitive. But findings in the November 2025 edition of the Accounts Payable Tracker® Series, a PYMNTS Intelligence collaboration with Finexio, reveal that AI-driven AP automation directly addresses these pain points.
Faster, more accurate payments and transparent dispute resolution mean suppliers can rely on organizations for predictability and fairness. The report found that this opens the door to negotiating better terms, accessing early-payment discounts, and even collaborating on supply chain resilience initiatives.
Because for suppliers operating on thin margins or managing volatile input costs, cash flow predictability can be the difference between stability and stress. This can ultimately turn AI-driven AP into a tool for supplier loyalty and competitive advantage.
AI as Game Changer
For years, AP automation has been synonymous with digitizing manual workflows. Optical character recognition to capture invoice data, automated three-way matching, and electronic payment rails have delivered measurable improvements in speed and accuracy. These are now table stakes. The differentiator today is not whether AP is automated, but how deeply artificial intelligence is woven into the process, and to what strategic ends.
AI in AP isn’t about incremental improvements. As the report highlights, it’s about prediction, optimization and insight. Machine learning algorithms pore over thousands of invoices, supplier records and payment histories, identifying patterns invisible to human reviewers. Natural language processing untangles email threads and unstructured data, resolving discrepancies and flagging potential disputes before they escalate. Anomalies in payment behavior are surfaced in real time, allowing fraud to be detected not after the fact, but as it emerges.
But the real value lies in the data. AI can synthesize information across thousands of transactions to identify which suppliers offer the best terms for early payment discounts or are most receptive to renegotiation.
Armed with these insights, finance leaders can move beyond blanket payment policies, tailoring approaches to individual suppliers and creating win-win scenarios. In an era where supply chain disruption can have outsized effects on business continuity, companies that foster robust, data-driven supplier partnerships are far better positioned to weather uncertainty and seize new opportunities.
Read the report: AI-Driven Accounts Payable: Elevating AP From Cost Center to Strategic Asset
Early-payment options can be offered dynamically, based on real-time cash positions, supplier preferences and invoice characteristics. Suppliers can choose to accept early payment in exchange for a discount when it benefits them most, rather than adhering to rigid terms negotiated months earlier.
The ability to orchestrate payments dynamically, such as choosing between ACH, wire, virtual card, or even innovative financing options, can help let finance teams unlock new sources of value. Virtual card payments, for instance, can deliver cash-back rebates and improved fraud protection, while also providing suppliers with faster access to funds.
As AI-driven AP programs mature, organizations can segment suppliers based on strategic importance, risk profiles and financial health, tailoring payment options accordingly. AP becomes a mechanism for supporting supplier stability, which in turn reduces supply chain risk for the buyer.
At the end of the day, supplier relationships often suffer not because of strategic disagreements but because of operational friction. Organizations that invest in AP automation with a relational mindset may find that the returns extend well beyond the balance sheet, shaping stronger, more resilient ecosystems that support long-term competitive advantage.
At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.
