The Back Office Gets Smarter as AI Transforms Supplier Payments

For years, accounts payable (AP) was judged by how little trouble it caused, but new data suggests it may now be creating room for faster payments, better supplier experiences and stronger control over cash.

That is the broad takeaway from the November 2025 Accounts Payable Tracker Series report, “AI-Driven Accounts Payable: Elevating AP From Cost Center to Strategic Asset.” The report argues that artificial intelligence is changing AP from a largely manual back-office function into a more proactive part of finance strategy.

Its findings span three areas: supplier enablement, fraud prevention and virtual card adoption. While the first two matter, the third may point to the biggest opening for finance leaders looking for measurable gains.

The report suggests that AI can help companies decide how to pay suppliers more efficiently and expand digital payment acceptance in areas where adoption has long been stuck at low levels.

93%: Finexio says its AI-powered framework is 93% accurate at predicting supplier payment preferences, helping AP teams identify which suppliers are most likely to accept digital payment methods.

92%: According to the report, 92% of companies using AI-supported AP tools reported faster identification of suspicious activity, a sign that automation is starting to improve AP defenses as fraud attempts grow more sophisticated.

60%: Finexio says its Card by Mail solution has driven virtual card adoption to more than 60% among suppliers invoicing up to $100,000 annually, far above the 7% U.S. B2B industry average cited in the report.

That last figure stands out because it suggests one of AP’s biggest barriers may be more solvable than many finance teams assumed.

Virtual cards promise tighter controls, faster settlement and easier reconciliation, but supplier acceptance has held them back. The report says Card by Mail tries to solve that by reducing onboarding friction. Instead of requiring suppliers to go through a complex setup process, initial card payments are mailed, giving suppliers a simple entry point before they decide whether to continue or move to email delivery. It is a practical step. And it appears to be working.

The report also places those gains in a broader business case. Manual AP remains common, with more than two-thirds of businesses still keying invoices into ERP or accounting systems by hand, according to HighRadius data cited in the report. Paper checks also remain costly, with enterprises spending an estimated $8 per check once materials, postage and labor are included.

Against that backdrop, AI looks less like a futuristic add-on and more like a tool for removing friction that has weighed on AP for years.

The tone of the report is clear. AP can do more. With better supplier targeting, stronger fraud screening and smarter payment routing, companies may finally have a way to make the function faster, safer and more useful to the business. That is a meaningful shift.

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.

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