TL;DR
IFOL’s Accounts Payable Automation Trends 2025 suggests there’s a widening gap between AI ambition and automation reality. While 51% of teams plan to adopt AI in the next year, 73% haven’t fully automated core AP workflows. The fix isn’t another long rollout — it’s getting hands-on with targeted AI, starting with SoftCo’s Smart Match Challenge. Is this AP Automation trend set to continue into 2026?
The Problem: Ambition Without Execution
- 66% still manually key invoices (up year-on-year).
- 63% spend over 10 hours per week on processing.
- 78% report stress from poor AP processes.
We’re in the paradox era of automation: AI dominates the agenda, but teams are reconciling invoices line-by-line. The result is an execution gap that drains productivity and audit confidence.
The Data: What the IFOL 2025 Report Shows
- 73% of AP teams are not fully automated; 27% have no automation.
- AI adoption jumped to 29%; 51% plan adoption within 12 months.
- Only 39% store AP documentation fully digitally; 10% are still paper-based.
- 92% believe automation would free finance for strategic priorities.
In short: the value is recognized, but not operationalized.
Where AI Fits Across the AP Lifecycle
To close the execution gap, apply AI to the full flow — not just isolated steps:
- Supplier Management
- eProcurement
- Contract Compliance
- Invoice Data Capture
- Invoice Matching
- Invoice Approval
- Posting and ready for payment
CFO Insight: Why Progress Stalls
Progress isn’t stalling because of missing technology — it’s stalling because most teams automate tasks, not processes. Adding capture or approvals on top of fragmented data yields quicker silos, not transformation. IFOL’s guidance: build clearer business cases and re-engage leadership to restart momentum.
Solution: Get Hands-On With AI
The fastest ROI is in three AI use cases that map directly to AP bottlenecks:
- Invoice data extraction and entry
- Automated matching and approvals
- Duplicate/fraud detection
These are exactly where respondents expect AI to help most in 2026, moving teams from rules to learning systems that improve accuracy over time.
Playbook: Close the Execution Gap in 2026
- Start narrow, scale fast. Pick one high-impact process (matching or approvals) and fully automate before expanding.
- Baseline your metrics. Track time per invoice, exception rates, supplier queries, and duplicate catches.
- Target visible ROI. Begin with capture or duplicate detection where manual effort is largest.
- Audit-proof by design. Centralize digital documentation with timestamps, user logs, and version trails.
- Lead from the top. Tie outcomes to working capital, supplier experience, and control — then sponsor the scale-up.
IFOL’s conclusion underscores the moment: interest is high, but manual processes and stalled initiatives persist — and the strain on teams is real.
Frequently Asked Questions
Fragmented systems, unclear ROI, and change resistance. Many teams automate point steps without fixing upstream data, so the overall process stays manual-heavy.
Invoice capture, automated matching/approvals, and duplicate or fraud detection — the same priorities highlighted by IFOL’s 2025 research.
Adopt platforms with embedded digital storage, timestamps, user logs, and document history so evidence is captured by default — not through manual reconciliations.
