Avaali Report: Most Enterprises Fail 90% OCR in Accounts Payable Automation

Avaali Solutions, a technology solutions company specializing in cost optimization and margin improvements, has released a new report, "The Future of Accounts Payable Automation." This comprehensive report reveals that the Accounts Payable (AP) process within large enterprises is undergoing a significant transformation, evolving from a back-office task into a strategic enabler of cash-flow optimization, supplier collaboration, and ESG compliance. The report provides finance leaders with actionable insights into harnessing automation to transform AP processes, enhancing efficiency, accuracy, and strategic impact across the enterprise.

Avaali's report, "The Future of Accounts Payable Automation," drew insights from in-depth survey responses from 35 large enterprises across sectors including manufacturing, retail, oil and gas, EPC, and services. Additionally, the survey incorporates findings based on discussions with over 60 large enterprise CFOs and CDOs.

The report highlights how intelligent automation, real-time analytics, and AI-driven systems are redefining the role of Accounts Payable in today’s finance departments. However, it also outlines key barriers to adoption, such as low OCR accuracy, high exception rates, and integration gaps.

Key Findings and Challenges

The report details several key findings:

• Over 76% of companies now process invoices within five days, signaling improved workflow design and faster cycle times.

• Top-performing companies process over 200 invoices per Full Time Employee (FTE) per day, while maintaining exception rates below 40%, demonstrating that scalability and accuracy can go hand in hand with the right automation strategy.

• Only 10% of organizations report auto-posting rates above 80%, a clear sign of intelligent systems enabling end-to-end automation from invoice capture to payment.

However, a major challenge persists: only 8.8% of organizations report high OCR (Optical Character Recognition) accuracy above 90%, exposing a significant automation gap. The report states over 35% of enterprises are stuck at achieving only 60% to 80% OCR accuracy.

Low OCR accuracy often results in manual rework, processing delays, and data inconsistencies, severely limiting the benefits of touchless invoice processing. This underscores the urgent need for investments in advanced OCR technology and AI-powered data extraction to improve straight-through processing rates and unlock the full potential of AP automation.

Strategic Imperatives for AP Transformation

"This whitepaper comes at a time when enterprises are under immense pressure to drive efficiencies and uncover hidden value in back-office functions," said Srividya Kannan, Founder and CEO of Avaali Solutions. "Accounts Payable, when powered by intelligent automation, becomes more than a transactional process—it transforms into a strategic function capable of delivering real value to cash flow optimization and supplier reliability. The need to act is immediate; businesses that fail to invest in advanced technologies risk being left behind in an increasingly fast-paced and competitive environment."

The whitepaper further emphasizes how macroeconomic pressures, technological advancements, ESG mandates, and evolving supplier expectations are accelerating the AP transformation journey. Companies are moving beyond cost-cutting to unlocking working capital, fostering trust with vendors, and gaining real-time financial visibility.

Strategic Recommendations from the whitepaper include:

• Embrace AI and autonomous AP systems for touchless invoice processing.

• Focus on compliance and how the solution works seamlessly to address local compliance requirements.

• Set ambitious performance benchmarks—OCR accuracy >90%, auto-posting >70%, and 200+ invoices/FTE/day. Integrate change management to make these results happen.

• Prioritize sustainability by adopting paperless processing and engaging diverse and MSME suppliers.

• Leverage data-driven insights by analyzing data to uncover trends and make smarter decisions.

• Upskill AP teams for roles in analytics, compliance, and vendor relationship management.

The report also emphasizes the importance of cross-functional collaboration with procurement, IT, finance, and business teams working in tandem to ensure successful AP transformation.

As companies centralize AP operations through Shared Services and Global Business Services, the push toward real-time, autonomous AP is creating new possibilities for agility and value creation.