The Future of AI-Powered AP Automation or How OCR in Precoro Saves AP Teams 80% of Their Time

A staggering 52% of accounts payable teams still spend over 10 hours a week processing invoices, with 60% handling these tasks manually. Does that sound familiar? If so, you’re no stranger to the endless back-and-forth with invoices—scanning, correcting, and re-entering data from documents that sometimes look like they’ve been through a shredder.

It’s enough to make anyone wonder: Isn’t there a better way?

Well, there is. It’s 2025, and technology has come a long way. At Precoro, we’re always exploring new technologies to improve our users' experience. With AI making waves across industries, we saw an opportunity to bring it into our platform in a way that delivers immediate benefits for our customers.

With Precoro’s latest Google AI OCR, our customers enjoy a completely new workflow. All the AP team needs to do is upload an invoice, grab a coffee, and by the time they’re back, the AI has already extracted all the important details. They simply give it a thumbs-up and move on with their day.

Curious if this solution could be a great fit for your team? Keep reading to find out:

The Struggles of Manual Invoice Processing in AP and Why It’s a Problem
What is AI-Powered OCR, and Is It Really a Solution to the Struggles?
How Does the AI-Powered AP Automation Module in Precoro Work?
Why Choose AI-Powered AP Module in Precoro?

The Struggles of Manual Invoice Processing in AP and Why It’s a Problem

The invoice processing workflow is still a slow, manual grind for many accounts payable teams. Invoices arrive in different formats—some clear, others blurry or poorly scanned—and all require time-consuming manual input. Key details like vendor names, amounts, dates, and line items must be entered by hand. This takes up a lot of time and, let’s face it, leaves room for mistakes.

Even after entering everything into the system, invoices get stuck in approval queues. They move through endless email back-and-forth, get delayed, and this pushes back payments, causing friction with suppliers.

Additionally, there’s no centralized space to monitor the entire process, which makes it difficult for controllers to track what’s being paid, who’s paying, and for what.

Here’s what happens as a result:

• Vendors are unhappy because there are delays in payment processing. 
• Your team misses out on early payment discounts, costing the company money that could have been saved.
• Your manager keeps asking for payment status updates, creating an ongoing stream of pressure. The lack of visibility into the process makes it hard to provide timely and accurate answers.
• With manual data entry, errors creep in—wrong amounts, incorrect vendor names, or mismatched invoice numbers. 
• The time spent manually processing invoices limits your ability to focus on more strategic tasks, such as analyzing vendor performance or improving internal processes.

All of this creates a harsh reality: accounts payable teams are overwhelmed, funds are misplaced, and there is no clear process in place to manage the situation effectively.

What is AI-Powered OCR, and Is It Really a Solution to the Struggles?

OCR has been around for a while, and many know it as the tool for extracting text from scanned documents or images. Now, you might be thinking, "OCR—what's so special about that? It's just text recognition, right?" Well, not quite.

Yes, traditional OCR tools are largely limited to basic text recognition. They extract text but often fail to understand the structure of a document. Layouts get scrambled, key details are missed, and the process leaves you correcting the same errors repeatedly. The root of the problem lies in their design — traditional OCR tools don’t evolve. They remain at the same level they were created on, unable to learn or improve over time.

At Precoro, we saw an opportunity to change this and hired a dedicated R&D team focused specifically on OCR. 

"We listened to our customers who had already tried OCR in the past. Almost all shared the same frustration — OCR ended up creating more work than it saved. Every little detail missed by OCR needed to be fixed manually. After evaluating multiple providers, we partnered with Google to integrate their advanced AI Processor technology. Our goal was to provide our customers with a tool they could truly rely on — one that understands the unique layouts of invoices they receive from their vendors. Now our customers benefit from invoices being processed 192 times faster — in just 30 minutes instead of 3-4 days — with 95% accuracy." – Andrew Zhyvolovych, CEO of Precoro.

Instead of just reading the text, the Google AI processor actually "sees" the layout of your document. It recognizes where important details are located — even in complex formats. This means it can accurately extract key information like vendor names, dates, items, and invoice amounts.

On top of that, because the OCR AI Processor learns from the documents it processes, it keeps improving over time. The more data it processes, the better it gets at recognizing the unique patterns in your invoices. This means faster processing and quicker payments to your suppliers.

Security is another key factor. The AP AI only learns from your invoices — it doesn’t share or use data between clients. Your data remains private and secure.

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How Does the AI-Powered AP Automation Module in Precoro Work? 

It’s not just OCR that gets the job done. To unlock the full potential of your accounts payable process, automation must go beyond just invoice data extraction. With Precoro, you get a complete suite of powerful features designed to ensure accurate, on-time payments to your vendors. 

Start Your Journey with Auto-Created Invoices

Using AI-powered AP automation in Precoro is straightforward. When vendors send you invoices, you can either upload them manually with one click or give them access to a secure inbox where they can email invoices directly. Precoro's OCR will automatically scan and extract all the necessary details, such as vendor names, totals, and line items, and pre-populate draft invoices for your review.

Keep Going with Automated 3-Way Matching

Once the invoice data is extracted, Precoro’s automated three-way matching takes over. The system cross-references the invoice with the corresponding purchase order and receipt to ensure everything aligns. If something doesn’t add up, it flags the issue for you, so you don’t have to dig through records to figure it out.

Receive Approvals 3.5x Faster with the Mobile App

With the details verified, the invoice moves into the approval stage. Precoro’s customizable workflows automatically route invoices to the right approvers based on predefined rules, such as department, amount, or project. Approvers receive real-time notifications and can approve documents from anywhere using the Precoro mobile app.

Sync All Details with Your Favorite Accounting Tools

After approval, all the information flows straight into your accounting or ERP system. There’s no need for double entry or worrying about data accuracy. From there, you can process the payments, with all the payment information automatically updated in Precoro for accurate reporting. 

Why Choose AI-Powered AP Module in Precoro?

Accuracy You Can Rely On

Every mistake in invoice processing costs time and money to fix. With AI-powered AP automation using Google’s advanced OCR, you won’t have to worry about missing details or entering incorrect data.

The AI extracts all critical information from your invoices—vendor names, invoice numbers, dates, and totals—with unmatched accuracy, cutting down on manual corrections and ensuring that you’re working with the right data from the start.

Pay Suppliers with Confidence and On Time

The invoice approval process can sometimes feel like it moves at a glacial pace. Stakeholders miss emails, approvals get delayed, and payments slip through the cracks. With AI-powered AP automation in Precoro, the entire approval process speeds up significantly. 

Once the invoice is processed and entered into the system, it’s automatically routed to the right people for approval. Notifications keep everyone in the loop, ensuring that approvals are timely and the process doesn’t stall. Faster approvals mean faster payments, which helps you build stronger relationships with suppliers and take advantage of early-payment discounts.

Gain Real-Time Visibility into Your AP Process

One of the biggest challenges with manual processes is the lack of visibility into the status of invoices. With Precoro, you can track the entire journey of an invoice—from receipt to payment—in real time. This transparency makes it easier to spot any issues early on and take action before they turn into problems. It also helps managers stay informed on invoice statuses and better forecast cash flow.

Improve Team Morale and Productivity

Nobody likes tedious, repetitive tasks. The more time your team spends on manual data entry, the less engaged they feel. By automating the routine aspects of invoice processing, Precoro helps create a more productive work environment. The AP team no longer has to chase down approvals, manually enter data, or worry about missed invoices. Instead, they can focus on higher-value tasks that actually make a difference for the company. 

Unlock Strategic Insights for Cost-Effective Decisions

Automation provides more than just time savings; it also unlocks a treasure trove of data that can be used for smarter decision-making. With Precoro, you gain access to detailed insights into spending patterns and payment histories, all in one place. This data helps you make more strategic decisions around budgeting, supplier management, and cash flow forecasting, transforming your AP department into a key contributor to your organization’s financial health.

The Future of Accounts Payable Is Here

Let’s face it—manually processing invoices is nobody’s idea of a good time. But with AI-powered AP automation in Precoro, that’s a thing of the past.

AI in accounts payable transforms how invoices are processed. With greater accuracy, invoices are quickly scanned and key details are captured automatically. As the system learns from the documents it processes, it continually improves, ensuring even greater precision over time.

What does this mean for you? Faster processing times, fewer mistakes, and a smoother approval flow. This leads to timely payments to suppliers, ensuring positive relationships and avoiding late fees. Plus, your team can focus on more strategic tasks that add value to the business rather than getting bogged down in routine.

By embracing AI-powered AP automation, you can make invoice management simpler and more efficient, reduce manual workloads, and ultimately enhance your financial operations.

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