CM October 2021

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Switch to Direct Debit Why not spread the cost of your Serrala CICM Membership CP Manage your own cashflow Simply scan the code below using your phone, print and return to CICM, The Watermill, Station Road, South Luffenham, Rutland, LE15 8NB and we will do the rest! Another reason to be a member Make the switch to Direct Debit For details contact: info@cicm.com Advancing the credit profession / www.cicm.com / October 2021 / PAGE 48
ADVERTORIAL The AI Advantage: Why the Time is Right Everybody is talking about Artificial Intelligence (AI), but what is all the fuss about if your finance teams are still operating efficiently? Will AI take jobs, or even replace industries? THE simple truth is no. It is however becoming clear that teams who are not leveraging AI for collections, credit and disputes rapidly risk losing market share to competitors who are. THE STORY OF ALEXA When we first heard the term ‘Alexa’, there were mixed reactions to the speaker that could pick up voice commands. Seven years on, Alexa is available in 15 languages, across 80 countries and boasts more than 100,000 skills. Today, it can wake up your cat, help prepare dinner, keep your home secure, find your phone, even clean your house! All cleverly driven through the power of machine learning and AI. Within finance, AI tools can handle huge amounts of manual processes in the areas of cash, credit, collections, and disputes. Often these manual processes are subject to manual errors that can lead to huge losses and damage a company’s reputation. LATE PAYMENT FORECASTING Looking in several places for payment due dates in multiple currencies is always a challenge for clients who are reactive and results in customers only being contacted when a payment is already late. By leveraging algorithms that analyse payment trends, AI can create payment date predictions so finance can prepare for collection activities before an invoice is even due. Organisations leveraging AI in this way can realise an improvement of between eight and 12 percent in working capital just by tapping into this functionality. PREDICTING DISPUTES Unresolved disputes account for large losses. Finance teams waste hours looking through unresolved deductions with 15-20 percent of disputes being invalid. AI and machine learning algorithms can predict the validity of these disputes, saving time and increasing output. As the data pool increases, AI can identify patterns and predict the validity of future deduction claims. AI IS IMPACTING THE FUTURE OF FINANCE Although AI is changing the way finance teams operate, there are opportunities to embrace this change and replace manually intensive processes with more critical and strategic projects. AI and machine learning allow teams to reduce the number of manual transactions posted, close their books faster and reduce the cost of regulatory compliance. PROCESS Cheque Data Capture Remittance Handling Remittance Handling Collections Deductions Integration Deductions Validity Predictor Deductions Data Extraction While many order-to-cash solution vendors claim to have AI, few are leveraging this engine to drive business improvement, reduce costs and impact the user experience. Ask yourself if your existing tool is actioning repeatable, high-volume tasks (Robotic Process Automation), leveraging machine learning to make decisions when repetitive information is presented (machine learning), or truly leveraging AI for deductive reasoning to come to an outcome, such as predicting invoice disputes (AI). Here are some checkpoints to consider when evaluating use of AI: AI CAPABILITY AI-based OCR technology to capture data from cheque and cheque stub without having to maintain templates. ML algorithms to intelligently use AR data to predict invoices with probability parameter. ML algorithms to intelligently use AR data to predict invoices with probability parameter. Predict invoice payment dates so collections teams have insight into potential delays. Integrations with customer and carrier websites/emails to backup documents such as Claims, POD, BOL etc. Deductions validity predictor to provide an insight on the outcome of a deduction with confidence score parameters. Deductions validity predictor to provide an insight on the outcome of a deduction with confidence score parameters. Advancing the credit profession / www.cicm.com / October 2021 / PAGE 49
Page 1 and 2: CREDIT MANAGEMENT CM OCTOBER 2021
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Page 5 and 6: CMNEWS A round-up of news stories f
Page 7 and 8: NEWS SPECIAL What really mattered w
Page 9 and 10: NEWS SPECIAL PASSING THE BUCK Debt
Page 11 and 12: Advancing the credit profession / w
Page 13 and 14: FROM THE CHIEF EXECUTIVE AUTHOR - S
Page 15 and 16: WORKFORCE MANAGEMENT AUTHOR - Colin
Page 17 and 18: INSIGHT AUTHOR - Leanne Salisbury F
Page 19 and 20: HIGH COURT ENFORCEMENT OFFICERS ASS
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