Improving the efficiency of Invoice Line item verification using AI Engine

Customer

A specialised service provider for law firms, the company assists in reviewing invoices that meet stringent client SLAs, billing, and litigation management guidelines. By streamlining the invoice processing workflows, the company not only improves law firms' profitability but also ensures efficient resource utilization.

Challenges

Law firms face significant challenges in managing timely payments due to various complex factors:

• Multiple time-keeping and billing systems, each with unique SLAs and e-billing guidelines.
• Varied input formats required by different e-billers, leading to difficulties in generating invoices in the correct formats.
• Absence of an automated process for validating invoice particulars, resulting in frequent invoice rejections.
• Challenges in tracking payment details, early payment discounts, and invoice compliance.
• Manual processing of high volumes of invoices is labour-intensive and prone to errors, leading to revenue losses due to missed rate reductions.

Business Requirements

To address these challenges, ZLabs developed a solution that could:

• Develop a seamless platform that supports multiple invoice formats as input.
• Standardize the invoices submitted by various law firms and deliver them to clients in their preferred formats.
• Automate the invoice review process and provide manual verification at specific stages, as required.
• Automatically tag line items that require rate reduction, so that the invoice verification associates can quickly identify them.
• Automatically generate a report if there is any inconsistency between AI-generated report and any manual processing.
• Streamline the invoice approval workflow that involves law firms.
• Ensure the application developed is robust and scalable enough to handle increasing volumes of invoices.

The Benefits

• Support multiple invoice formats as inputs and standardise them for client delivery.
• Automate the invoice review while providing manual verification support at specific stages.
• Automatically tagline items requiring rate reductions, helping invoice verification associates quickly identify them.
• Generate reports highlighting inconsistencies between AI-generated results and manual processing.
• Streamline the invoice approval workflow for law firms, ensuring scalability and robustness to handle growing volumes of invoices.

Solution Implemented

ZLabs developed a simplified, easy-to-use web-based application leveraging AI-enabled predictive analysis. The solution encompassed the following key features:

1. AI Predictive Analysis: The system automatically tagged line items needing rate reductions, significantly reducing the time and effort required for manual review.
2. Manual Line Item Verification Support: Manual verification was still provided to ensure accuracy and compliance at specific stages of the process. Zlabs provided this service to customers.
3. Multi-format Support: The platform handled various invoice formats, accommodating the requirements of legacy payer systems.
4. Automated Invoice Processing:The solution identified non-compliant invoices, streamlined SLA and compliance management, and seamlessly integrated multiple time and billing systems.
5. Comprehensive Reporting:The system produced detailed reports on turnaround times, ROI, and inconsistencies between AI and manual processing.
6. Workflow Streamlining:The internal workflow was optimised to manage the distribution and processing of invoices for law firms, ensuring efficiency and scalability.
7. Pluggable:The application can integrate with existing applications so that the customer can continue using it and the features can be used in new solutions.

Benefits Realized

• Enhanced Accuracy: AI-driven predictive analysis improved the accuracy of invoice line item tagging, reducing errors and enhancing compliance.
• Increased Efficiency: Automating the invoice review process led to faster payments, better visibility for early payment discounts, and improved control over invoice processing.
• Scalable Solution: The robust and scalable platform supported growing invoice volumes, integrating seamlessly with multiple e-biller systems to centralise payment tracking.
• Reduced Overheads: Law firms benefitted from reduced overheads related to invoice preparation, as the automated workflows significantly reduced manual processing time.