AI Evaluation Matrix

Automation technology is everywhere in real estate accounting, but not all solutions are created equal. Many claim to use AI, but what they’re actually offering is outdated automation that still requires human oversight, manual corrections, or rule-based programming. If a tool still relies on human input to function effectively, it’s not AI—it’s just adding more steps to your workflow.

So how do you separate real AI from the imitators? Here’s what you need to know when evaluating automation technology for your AP process.

What Real AI Can Do in Accounts Payable

Genuine AI isn’t just a productivity booster—it fundamentally changes how AP teams operate. Here’s what true AI-driven invoice automation can do:

• Read, understand, and code invoices automatically—without templates or predefined rules.
• Learn and improve over time—adapting to new invoice formats, vendors, and GL coding patterns.
• Eliminate human intervention—handling the entire data extraction and validation process without needing manual review.
• Seamlessly integrate with your existing systems—without requiring custom setup or maintenance.

Unlike traditional automation, real AI doesn’t just “speed up” data entry—it removes it altogether. If a system still requires human validation or rule-building, it’s not AI; it’s just another task on your to-do list.

Why It’s Critical to Use Real AI

Many AP solutions advertise “AI-powered” automation, but under the hood, they’re using Optical Character Recognition (OCR), templates, or workflow automation tools that still need manual correction. The result?

🚨 No real time savings—teams still spend hours fixing errors, adjusting rules, and verifying data.
🚨 Inconsistent accuracy—rules-based systems don’t adapt, and OCR often misreads invoices.
🚨 Hidden operational costs—manual intervention, IT support, and ongoing system maintenance.

With true AI, these challenges disappear. AI continuously learns from past invoices, improving accuracy and eliminating bottlenecks—without requiring human involvement. If you’re looking for real efficiency gains, make sure the technology you choose isn’t just repackaging traditional automation.

How to Tell the Difference Between AI and Other Technologies

When evaluating automation solutions, look for clear indicators that separate true AI from rule-based tools:

• If it requires templates, it’s not AI. AI should be able to process invoices without predefined formats.
• If it needs human validation on every invoice, it’s not AI. True AI should handle end-to-end processing.
• If it uses OCR alone, it’s not AI. OCR simply extracts text—it doesn’t understand or categorize data.

The best way to identify real AI? Ask how much manual effort is still required. If the answer is “some” or “a little,” it’s not AI—it’s just another tool that needs managing.

AI vs. Outsourcing: Why AI Wins Every Time

For AP teams struggling with inefficiencies, outsourcing might seem like a viable solution. But while outsourcing shifts the burden of manual tasks elsewhere, it doesn’t actually solve the problem—it just moves it.

Here’s why AI is the better alternative:

• More accurate: AI learns from your invoices, improving precision over time, while outsourced teams rely on human data entry.
• More control: With AI, you maintain ownership over your AP process. Outsourcing means relying on a third party to get it right.
• More scalable: AI grows with your business, while outsourced services can become costly and inconsistent as you scale.

Rather than handing off inefficiencies to another team, AI eliminates them entirely—giving your team more time to focus on strategic work, not invoice entry.

Questions to Ask When Evaluating AP Technology

Choosing the right automation solution is critical. To ensure you're investing in real AI, here are a few things to consider:

📌 How does the technology use and gather information? 

📌 Does it handle exceptions and/or mistakes well?

📌 How does it allocate variable line items (such as late fees)? 

📌 How much human input is required for the tool to function? 

Want to see a full list of evaluation questions to ask when making a technology purchase? Check out our AI Evaluation Matrix. 

By asking the right questions and understanding what real AI looks like, you can avoid investing in outdated automation and choose a solution that truly transforms your AP process.

Ready to See AI-Driven AP Automation in Action?

If you’re looking for an AI solution that eliminates manual work—not one that just moves it around—learn more here.