Not all AI is Identical
April 10, 2019
From smart phones to smart homes to smart cities, it seems these days that Artificial Intelligence (AI) is changing the world all around us. It’s easy to think of AI as a simple program or even a ‘chip’ that gets installed into a device. However, it’s actually a much more complex set of related technologies working together on this ever-changing, rapidly growing, automation revolution.
First, it’s important to know, not all AI is created equal. There are different levels and complexities that can be programmed into AI depending on need, interaction and industry.
For the most part, finance departments and credit professionals have been the slowest industries to adapt to changing technologies throughout the years, and for good reason. They’re on the frontlines of some of the most sensitive data, so relinquishing control to AI comes with a cautious approach.
Here at Rimilia, we’re not only changing the way finance companies are integrating AI into their practices, but we’re helping them thrive by utilising our AI platform.
AI vs. RPA
Artificial intelligence can mean so many different things and is an umbrella term for technologies like RPA. When they are paired together, the benefits can take organisations to the next level.
Artificial Intelligence (AI) has the ability for advanced automation and data analysis techniques. Essentially, it’s the development of computer systems and their ability to perform tasks normally requiring human intelligence.
Robotic Process Automation (RPA) is a machine that replicates manually intensive processes that are normally carried out by humans. This can range from simple process replacement, such as scanning technology, to the foundation behind predictive analytics and big data analysis. Even in the world of RPAs, there are various levels of abilities and intelligence to perform certain tasks.
Essentially, AI is concerned with “thinking” and RPA is associated with “doing”. They complement each other well, and when combined, they can create a completely autonomous process so you can be more efficient.
The levels of RPA
Just like when you purchase a new vehicle, there are various levels of features and options when using RPA. But unlike a vehicle, when choosing the more premium level, it can save your organisation time and money because its functionality is so much greater than the standard version. PwC estimates that 45% of work activities could be automated using RPA technologies.
Level 1 – Simple Process Placement
The basic functionality of Level 1 RPA includes Optical Character Recognition (OCR) so you can easily have a 1-to-1 match. It offers enhanced Excel finding, can scan invoices and automatically prepares payments. Through the use of logic and rules to validate auto-match invoices, this level is the lowest tier because it is not intelligent and doesn’t have a learning feature.
Level 2 – A Level of Learning
With Level 2, you get all of the features of Level 1, but you move up a more advanced learning system that is better at building algorithms to remember previous actions and aliases for customer allocation. Compared to Level 1, you expect to see a 20-30% improvement in matching rates, but performance would still be a far cry from Level 3.
Level 3 – Cognitive AI, The New Definition of Intelligence
Like we mentioned earlier, just like vehicles, there are various levels of features with RPA, and what we at Rimilia use is the most premium, highly-advanced system currently available. Not only does it provide the same functions as the other levels, but it’s also programmed to learn as it goes — working with the user on how to use the allocation effectively, and presenting allocation options.
The application is constantly learning, improving and assisting the user with complex decisions, all the while it has the ability to predict and forecast what’s going to happen the next time. When your books are that pinpoint accurate, you’re able to make better financial decisions.
Part of something bigger
ISG (Information Services Group) has revealed that 92% of companies are aiming to adopt robotic process automation (RPA) by 2020. We’ve seen it and we’ve experienced it for ourselves, finance teams are perfectly primed to take advantage of the rapid growth in RPA and AI technologies. Day in and day out, they have access to huge amounts of data, ideal for solutions utilising predictive analytics.
Automation can significantly improve your finance operation. But not all solutions are created equal and not all can offer immediate ROI. Level 1 and 2 (known as first-generation technology) may only be able to allocate/match up to 50% of your invoices, so you still need to allocate the rest manually. With Rimilia’s Level 3 capabilities (known as second-generation technology), we have seen our customers achieve incredible full-payment processing rates, allowing their team to focus on more value-added tasks.
Imagine what you could achieve with a true AI solution.
Contact one of our expert sales reps for a demo today.