7 Ways AI is Revolutionizing Back-Office Work

It’s been almost three years since Chat GPT hit the scene and changed the world’s perception of what AI can do. Today, AI is no longer a futuristic concept; it’s a powerful tool that is transforming back-office operations across industries. Businesses around the world are embracing AI not as a means to replace human workers, but to enhance their capabilities, streamline workflows, and eliminate mundane, repetitive tasks, making work more enjoyable across the board. 

By automating time-consuming manual processes, AI frees up employees to focus on more meaningful, strategic work that drives business growth and improves job satisfaction. 

However, despite its rise into ubiquity, there still seems to be some confusion about just how effective AI can be–and how it can be used most effectively in business. And that’s understandable; when every tech company promises the world, it can be hard to know which solutions make a real difference. In real estate especially, where decision-makers are hesitant to overhaul technical operations, weighing the pros and cons of implementing AI can be difficult. Here are 7 examples of how AI has transformed operations at real CRE companies that you can reference when decision making becomes overwhelming (and annoying). 

How AI Can Reduce Manual Tasks and Improve Efficiency

For companies managing high volumes of paperwork, time is a crucial factor. AP teams are no exception to this rule: the manual process of sorting, capturing, and coding invoices can slow down cash flow, create bottlenecks, and lead to delayed payments. This is especially problematic in CRE, where multiple properties and communities are involved, each with their own set of invoices and payment deadlines. We want our employees to be focused on providing care and service to our tenants, not locked in a room coding invoices. 

And that’s where AI comes into the picture. 

Integrating an automated coding solution into an existing AP workflow can help those teams streamline the payments process, removing the tedious, time consuming task of data entry from their daily to-do list and freeing them up to focus on more important (and rewarding) items. 

Real-World Examples: 

Anthology Senior Living faced slow invoice processing due to the manual nature of invoice coding, leading to significant payment delays across their 44 communities. By implementing an automated AP solution, Anthology was able to cut down invoice processing time significantly. The AI system captured and coded invoices in real-time, saving nearly 4,600 hours annually—time that is now better spent on resident care and strategic financial management.

Similarly, Block Real Estate Services dealt with complex invoice coding across numerous properties. With AI-powered automation, Block reduced manual processing by 70%, allowing their teams to focus on more strategic tasks like vendor management and financial planning, rather than sifting through piles of invoices.

How AI Can Alleviate Employee Burnout and Improve Retention

Employee burnout is a major issue in industries with high turnover rates, especially when employees are bogged down by repetitive and tedious tasks. For accounts payable teams, manual invoice processing can be exhausting and frustrating. In high-stakes roles, like Business Office Directors (BODs) in senior living, burnout is a serious concern; the skills necessary to do that job well take a long time to learn, and turnover can seriously disrupt not only business processes, but resident care as well. 

AI can help alleviate burnout by automating time-consuming tasks and allowing employees to focus on that more meaningful work–like care delivery. AI learns from past invoice data to apply consistent coding rules, freeing up staff to handle more complex, client-facing tasks, which are more rewarding (and enjoyable).

Real-World Examples: 

LCB Senior Living was grappling with high BOD turnover from burnout. Tedious, repetitive tasks were making an otherwise rewarding role monotonous and frustrating. By removing the necessity for manual invoice coding, LCB reduced the workload for its BODs by 50%, allowing them to focus on running their communities instead of spending countless hours on data entry. This reduction in workload improved job satisfaction and helped boost employee retention.

Similarly, Bridge Investment Group reduced employee stress by automating invoice coding, allowing property managers to spend more time on tenant relationships and other high-value tasks. The shift from administrative work to more strategic roles not only enhanced job satisfaction but also improved retention.

How AI Can Scale AP Teams Without Increasing Headcount

As businesses grow, so do the challenges associated with managing increased invoice volumes. Without the right tools, scaling an accounts payable team often means hiring additional staff, which brings its own set of costs and challenges. This is particularly true in real estate, where expanding portfolios lead to more paperwork and the need for more labor to keep up.

However, AI enables businesses to scale their capacity and increase efficiency without adding headcount. By automating repetitive tasks, AI allows existing teams to process more information faster and with greater accuracy. With AI in place, businesses can grow their operations and handle a larger volume of work without the logistical and financial burden of hiring additional staff.

Real-World Examples: 

Bridge Industrial faced the challenge of scaling its AP team to accommodate a rapidly growing portfolio. With an automated solution, they were able to scale the team’s capacity without adding headcount, processing invoices in minutes rather than days. This not only improved efficiency but also reduced human error, enabling Bridge to handle three times the volume of invoices while keeping costs (and headcount) down.

The Related Group faced similar challenges in handling large volumes of invoices across various properties. With an AI solution, they automated invoice capture and coding, allowing them to triple their invoice processing capacity without expanding their team. This scalability was key in helping them manage growing workloads without increasing overhead.

How AI Can Improve Financial Reporting

A significant benefit of automating AP processes with AI is the ability to streamline invoice processing, leading to better visibility into cash flow, improved reporting accuracy, and more timely financial decisions. This improves not just operational efficiency but also strategic decision-making at the executive level.

Real-World Example: 

Whitestone REIT used AI to reduce time spent on manual invoice coding by 25%. The team was able to process invoices faster, improving cash flow visibility and reducing the risk of delayed payments. This improvement not only streamlined the AP process but also contributed to a more empowered and efficient team.

Embracing AI to Enhance Back-Office Operations

As an AI solution, our opinion on the matter is obviously biased. However, we feel that it’s undeniable that AI is a game-changer for back-office operations. By automating time-consuming tasks like invoice capture and coding, AI frees up employees to focus on high-value work, reduces burnout, and helps businesses scale without the need for additional headcount. These examples are meant to illustrate just how powerful AI can be in solving common operational challenges. It isn’t here to replace employees—it’s here to enhance their experiences, improve job satisfaction, and create more efficient, agile businesses. 

And as AI continues to evolve, we believe that its potential to revolutionize back-office operations is limitless.