Totally touchless vs. The human touch

In this article, we explore how automation and manual methods can coexist, highlighting their respective strengths and how they can enhance each other.

Bridging the divide: Manual labor and automation

Automation empowers businesses with valuable data analytics and insights that guide strategic decisions, such as supplier selection and negotiation strategies. However, interpreting this data often benefits from human expertise and judgment. The key to maximizing the benefits of P2P automation lies not in completely replacing the human element, but in using automation to enhance human capabilities.

Automated systems are exceptional at handling routine transactions but can struggle with anomalies or complex cases. Human oversight ensures these situations are handled with the necessary flexibility, maintaining the smooth operation of the P2P process.

What are the benefits of automating the P2P process?

P2P processes involve various operations. When handled manually, these can be time-consuming and error-prone due to repetitive data entry, deadline management, and moving information between systems. Automation, on the other hand, brings new levels of accuracy and scalability, significantly reducing the potential for human error.

Here are some of the key benefits of automating P2P process:

• Automated data capture and entry speed up transaction processing compared to manual methods.
• Automation minimizes human errors in data entry and calculations, leading to more accurate records and fewer discrepancies.
• Systems can enforce compliance with corporate policies and regulatory requirements more consistently.
• Automation provides businesses with valuable data analytics, enabling informed decisions and opportunities for cost savings and efficiency.
• Real-time tracking of the P2P process gives greater control and insight into operations.
• Streamlining through automation reduces the need for manual intervention, lowering operational costs.

Are there any benefits of manual processes in P2P?

While automation offers significant advantages, manual processes still provide a level of flexibility and human judgment that automated systems are striving to match. For example, when handling exceptions or unique cases that require a more tailored approach, people can offer solutions that go beyond predefined rules.

One clear benefit of human involvement is managing sensitive, high-stakes situations—like negotiating terms with a long-term supplier who has just flagged an urgent issue. In these cases, the human ability to build rapport and adjust the conversation dynamically makes a real difference, far beyond what automation could achieve in terms of relationship-building.

Here are some additional benefits of the human touch:

• Humans can adapt to unique situations and exceptions more fluidly than automated systems, offering a level of operational flexibility that automation hasn’t fully replicated yet. However, AI is evolving rapidly in this area, with machine learning models increasingly capable of handling routine exceptions and learning from past experiences. While human oversight is still crucial for complex or ambiguous situations, AI can effectively manage more standard exceptions.

•  Manual processes allow for human judgment and expertise, particularly in complex scenarios where adherence to rules is maintained, but flexibility in decision-making is essential to address unique challenges. As AI continues to improve its ability to analyze and interpret data, it is playing a more supportive role in these scenarios, offering recommendations and assisting with decisions that involve large datasets. Nonetheless, human input remains critical for nuanced decisions that require broader context or ethical considerations.

•  Strong supplier relationships thrive on communication and negotiation. While automation can streamline transactions, it’s human interaction that nurtures and strengthens these vital business connections. AI is increasingly enhancing its ability to support these interactions by analyzing past communications, tracking relationship history, and even managing simpler negotiation tasks. However, the subtleties of human relationships—such as reading emotions, adjusting tone, and building trust—remain irreplaceable and are key to long-term relationship success.

The future of P2P: Harmonious Integration

The debate around P2P processes is not about choosing between touchless automation and the human touch, but about finding a balance that leverages the strengths of both. Automation offers unmatched efficiency, accuracy, and scalability, while human expertise provides strategic depth, flexibility, and the relational dynamics essential for strong supplier relationships. As AI continues to evolve, it is enhancing its ability to support even more aspects of P2P, including elements like communication and negotiation, though the nuances of human interaction remain indispensable.

By embracing a mix of advanced automation and responsible human oversight, businesses can streamline operations while maintaining the agility and insight needed to navigate both complex decisions and valuable relationships. The future of P2P lies in combining the best of automation with the irreplaceable strengths of human judgment.

Ready to dive deeper into the evolving role of AI and automation in P2P?

Watch our Sofa Talks episode, “7 Myths About AI-Based Invoice Processing,” where we break down common misconceptions and highlight the real benefits of integrating AI into your P2P process.