Amid global economic uncertainty, finance leaders are reevaluating B2B order-to-cash processes. A recent study by global market analysis and advisory firm IDC, commissioned by Billtrust, reveals that most CFOs optimistically see generative AI for its potential to significantly impact day-to-day financial operations.
A new era for order-to-cash: CFOs are leading
In today’s fast-paced financial landscape, where productivity and efficiency reign supreme, the order-to-cash (OTC) process has become a prime target for digital transformation. 83% of respondents now indicate that digital transformation across their order-to-cash processes is critical to their organization’s survival, vs. 77% in a 2023 survey.
And it’s the CFOs who are driving this change, recognizing the immense potential of technologies such as AI to revolutionize the OTC landscape. According to the survey, CFOs perceive digital transformation as a significantly more critical issue in contrast to the overall survey respondent pool (43% strongly agree, as opposed to 34%).
“The study underscores a pivotal moment for finance leaders, as they recognize the transformative power of digitalization and generative AI in their B2B order-to-cash processes.”
Bob Purcell, CFO, Billtrust
Major changes happening
Building on last year’s survey findings, the year-over-year outlook has evolved for certain survey data points*. Over the past 24 months, more than half (52%) of respondents have made significant changes to their OTC processes. Noteworthy is the emerging focus on payment management in 2024, with figures climbing to 57% from 52% in 2023. This trend is accompanied by a slight alleviation of inflationary pressures and currency fluctuations.
AI and emerging technologies: the future of OTC
The survey shows AI’s impact is loud and clear. 59% of respondents believe AI has a major or severe impact on their day-to-day financial activities, with CFOs demonstrating even greater optimism (66%).
Generative AI opens a new frontier in order-to-cash, with 84% of respondents agreeing that generative AI will help them work faster. Organizations are enthusiastic about GenAI’s impact on budgeting, planning, invoice management, and cash management. While AI offers significant opportunities, organizations must also address challenges such as data quality, privacy concerns, and the need for skilled talent.
Other technologies are also in play
The rise of AI is unmistaken, but AI isn’t the only game-changer in town. In a recent webinar, Kevin Permenter, Research Director, Financial Applications at IDC, highlights how other cutting-edge technologies – such as machine learning, predictive analytics, automated workflows, virtual assistants, and APIs – are all poised to further augment and automate OTC processes, reducing discrepancies and providing clearer insights into future cash flows.
Other key findings
While the full report offers a wealth of detailed findings, here are some other key insights:
- Payment acceptance costs: For 68% of respondents, costs associated with payment acceptance are a top concern.
- Varied employee perceptions: The majority (57%) believe that a lack of OTC modernization has negatively impacted their ability to attract and retain financial employees.
- Vendor expectations are shifting: Users anticipate vendors to seamlessly incorporate the latest advanced technology and aid them in discovering methods to optimize its impact.
Why these insights matter
The findings in the IDC InfoBrief underline the importance of embracing AI and digital transformation in the order-to-cash process. For organizations aiming to stay competitive, understanding and leveraging these technologies is not just an option—it’s a necessity.
“The enthusiasm for generative AI among CFOs is a testament to its potential to revolutionize financial activities. It’s clear that as we move forward, the integration of advanced technology in the order-to-cash space will not only be expected but will become essential for competitive advantage and organizational adaptability.”
Kevin Permenter, Research Director, Financial Applications, IDC.
Ready to dive deeper?
While these highlights provide a glimpse into the transformative power of AI in OTC, the full report offers much more. If you’re a CFO, finance leader or professional looking to optimize your OTC process, the IDC InfoBrief is an essential resource.
*The data in this article is from IDC’s Billtrust Global Order-to-Cash Study Survey on data in the order-to-cash market segment fielded in March 2024 to 617 business, project and IT executives, across the US, UK, and six West-European countries.
