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Insights and Expertise

How GenAI is accelerating the

evolution of B2B payments

GenAI's transformative potential
GenAI's true value lies in transforming rigid, reactive
payment systems into dynamic, intelligent platforms.
Unlike traditional rule-based systems, GenAI introduces
contextual understanding, nuanced decision-making and
predictive capabilities to an industry historically depen-
dent on fixed parameters and predetermined responses.
By Rinku Sharma This technology enables sophisticated real-time decision-
Boost Payment Solutions making, deeper behavioral analytics, and adaptive fraud
detection systems that evolve alongside emerging threats.
enerative AI (GenAI) has evolved from indus- For innovation-focused companies, GenAI represents a
try buzzword to business imperative across powerful accelerator that amplifies existing capabilities
sectors, and B2B payments is no exception. and unlocks new possibilities for intelligent automation
G While consumer payments experienced a digi- within established, reliable infrastructures.
tal revolution over the past decade, B2B transactions
remained trapped in legacy workflows, manual processes Five key areas of impact
and outdated systems. As generative AI reshapes financial operations, its impact
can be seen across multiple dimensions of payments and
Today, GenAI is emerging as the catalyst that will mod- treasury management, with five areas standing out in par-
ernize B2B payments, streamlining accounts payable and ticular:
receivable operations while enabling sophisticated risk
management and fraud detection capabilities. 1. Eliminating manual processes and reducing fric-
The B2B modernization challenge tion: GenAI's most immediate impact targets tradi-
tionally manual tasks like invoice processing, pay-
B2B finance is a battlefield of complexity involving frag- ment matching and data reconciliation. These pro-
mented data, multi-layered approvals and relentless reg- cesses have long been time-consuming, error-prone
ulatory change. GenAI gives us the tactical advantage: and costly bottlenecks in B2B workflows.
systems that learn, reason and resolve friction before it
even surfaces. The era of reactive operations is over; we're Through machine learning and natural language pro-
building predictive, self-healing payment networks. cessing, GenAI handles high volumes of unstructured
data, extracts relevant information, and completes
The traditional solution—adding more human resourc- reconciliation tasks with remarkable speed and accu-
es—is no longer viable. Research from Manhattan Venture racy. AI-powered invoice processing tools automati-
Partners revealed that manual payment processing takes cally capture and interpret details from various for-
67 percent longer than automated solutions, highlighting mats, such as PDFs, scans and emails, and match them
the urgent need for digital transformation (see http://bit. against purchase orders and payment records in ERP
ly/48EOFze). systems.
This advancement in data parsing represents a signifi-
However, as we embrace GenAI's potential, we must rec- cant breakthrough. While traditional STP platforms
ognize that it builds upon, rather than replaces, existing efficiently handle billions in payment volume, GenAI
proven technologies. Blockchain, robotic process automa- addresses complex edge cases that fall outside stan-
tion (RPA), and straight-through processing (STP) systems dard processing parameters, accelerating payment
already address many challenges that GenAI is expected cycles while improving accuracy and compliance.
to solve, including reducing transaction friction, strength-
ening security protocols and streamlining reconcilia- 2. Optimizing cash flow through predictive intelli-
tion processes. The key insight is viewing GenAI not as gence: Cash flow management becomes strategic with
revolutionary replacement technology, but as intelligent GenAI's predictive capabilities. By analyzing histori-
analytics and insights layers that optimize existing robust cal payment data and behavioral trends, GenAI mod-
infrastructure. In the high-stakes, heavily regulated B2B els forecast when payments will likely be received or
payments environment, proper oversight and thoughtful delayed, enabling proactive working capital and li-
guardrails remain essential regardless of the underlying quidity management.
technology stack.
In accounts receivable, GenAI analyzes customer pay-
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