It is no secret that businesses are in an era of AI revolution. With AI infrastructure spending expected to double by 2028, according to an IDC report, many are still coming to terms with the direction their industries are heading. However, where there is still some resistance, there is the strong argument that AI should be embraced as a strategic lever for smarter operations. l.
In fact, adopting AI for certain business functions that are rife for automation – such as travel and expense (T&E) – is a surefire way for businesses to unlock cost savings, boost efficiency, and gather ROI evidence for future investment into AI technology.
Travel & Expense: A strategic starting point
So, why T&E? In short, it’s a cross-departmental function impacting most employees. T&E can also be the second-largest cost centre after payroll, meaning business leaders should not overlook its impact on everyday business operations.
But where does AI come into play? Simply put, AI in T&E streamlines the process for everyone – by directly impacting spend visibility, compliance, and productivity, it’s difficult to present an argument where AI is the villain. Notably, those who integrate AI into their T&E operations will likely process 1.5x more expense reports per month, again, making AI hard to pass on for business leaders looking to streamline their operations.
The competitive gains of AI in T&E
Functionally, by introducing AI into T&E operations, businesses will start to notice faster processing and lower costs. For example, by automating receipt capture, expense report creation, and audits, businesses integrating AI will experience a 90% reduction in report rejections, according to research from SAP Concur. This efficiency extends further with predictive planning, enabling companies to forecast travel costs automatically and cutting planning time by a huge 83%. Lastly, we can’t forget about the advantages in tax optimisation – AI is able to identify reclaim opportunities and ensure seamless tax compliance across all relevant jurisdictions.
Ultimately, the impact of AI is clear: businesses can achieve real-time decision-making, improved forecasting, and a marked reduction in potential fraud, all of which set businesses up for success.
There are so many other examples recently of businesses pushing the boundaries of everyday business operations, so how are the leading businesses already winning with AI? Target is a great example. They have implemented a GenAI chatbot into their stores, assisting frontline staff, a simple but effective tool that other retailers could benefit from. Similarly, Boeing & Airbus use AI for predictive maintenance and operational efficiency; another simple but effective tool that could play a part in your next business trip or holiday abroad. Significantly, research from AMI also found that businesses will likely see a 628% return on investment over three years, and with payback in just seven months, it’s difficult, yet again, to fight a case against implementing AI into business operations.
Overcoming the common barriers
Despite all this exciting potential, there will always be potential barriers to innovation, and many business leaders are expressing their reservations about integrating AI, labelling it as a novelty. However, AI has been a reliable element of business operations for nearly a decade, demonstrating a proven efficacy in a variety of business functions.
Another common concern revolves around the complexity of integrating new AI technologies. Fortunately, many leading solutions are designed for seamless, pre-integrated deployment and are application-agnostic, simplifying implementation significantly.
Moreover, with data security under the spotlight, it’s understandable that businesses worry about exposing sensitive information to AI. However, especially recently, AI platforms are being built on secure infrastructures, safeguarding data with advanced tools.
Finally, the fear of AI replacing jobs is often voiced, but in reality, AI typically mimics human capabilities, automating tasks and freeing employees to focus elsewhere. Ultimately, despite 58% of CFOs admitting to knowing little about AI, a significant 51% are already investing, highlighting a growing recognition of its potential despite uncertainty in the unknown.
What’s next? Embrace AI or fall behind
AI is no longer optional. Businesses are now recognising that AI isn’t just a tool, but a key element of everyday operations. As we’ve seen, particularly within travel and expense (T&E) management, AI offers some stand-out benefits. From significantly reducing report rejections and processing times to unlocking substantial cost savings and empowering smarter financial decisions, the data speaks for itself – AI can bring a competitive advantage
Ultimately, now is the time to embrace AI-driven transformation in your business operations. Delaying the inevitable and you could fall behind your competitors as AI comes to the fore in business operations.
