Automating your business can be challenging, especially if you’re aiming to use Business Process Automation (BPA) to achieve it.
BPA is an excellent choice, as it not only saves time by automating repetitive tasks but also frees up employee time, allowing them to focus on more challenging and creative work.
But with AI-inclusion, BPA implementation requires more expertise, planning, and careful execution.
Companies need to study business process automation use cases, case studies, and examples to know how they can effectively use AI-powered BPA.
That’s why this article explores business process automation in depth. I’ll cover AI automation, BPA vs RPA, AI-BPA stack core components, and key use-cases. Additionally, I’ll cover AI-powered BPA (AI-BPA) benefits and challenges.
Table of Contents
What is Business Process Automation?
Business process automation uses software to automate repeatable steps. It helps simplify complex processes to reduce manual work. By streamlining the processes, businesses aim to improve profitability and ensure business functions run smoothly.
According to Business Research Company, the BPA market size will grow at a stable rate of 15.8 % compound annual growth rate (CAGR), reaching $29.59 billion by 2029.
Organizations leveraging BPA have reported significant gains. For instance:
- 73% improvement in patient processing time, 80% in claim processing, and 87% in scheduling errors by Memorial Healthcare System. They also saved $2.5 M per year.
- 92% improvement in order processing time and 96% in customer response after implementing BPA by Target Corporation.
BPA can be approached both as a tactical process and as a broader business strategy.
BPA as a process:
BPA as a process helps automate processes for accuracy, efficiency, and speed. Examples include invoice processing, data entry, and customer support ticketing. These require specific implementation through rules and workflows.
BPA as a strategy:
BPA as a strategy requires identifying processes that impact large business goals such as productivity improvement, cost reduction, and improved customer experience. Once identified, these can be optimized by technology such as integration and improving scalability.
What is AI Automation?
AI enhances automation strategies like BPA by enabling systems to learn, adapt, and handle complex, unstructured tasks.
AI is a core component of BPA, where technologies such as machine learning, computer vision, Robotic Process Automation (RPA), and natural language processing (NLP) help in implementing BPA solutions.
AI can mimic human tasks while offering better accuracy, efficiency, and creativity.
With the right approach, organizations can reach different levels of automation maturity, including:
- Task automation → Here, automation takes care of repetitive tasks via RPA or scripting tools.
- Process automation → ensure proper business process automation to streamline workflow with minimal to no human intervention.
- Intelligent automation → the highest level of automation with self-learning capabilities that uses ML, AI, and NLP to automate complex processes and drive innovation.
Companies know the impact of AI-BPA. It gives them the tools to automate business processes. In fact, according to the McKinsey report, by 2030, AI-BPA is projected to generate $12.6 trillion in the global economy.
BPA vs. RPA
BPA and RPA are both automation tools with key differences. To understand, let’s look at the following table.
Criteria | Business Process Automation (BPA) | Robotic Process Automation (RPA) |
Focus | Help automate business processes via software and technologies | Automate repetitive tasks by mimicking human interaction with software |
Integration | Integrates deeply with BPM (Business Process Management) engines, data services, and systems via APIs | Works via GUIs and doesn’t require deep integration. |
Scope | End-to-end business process and workflows | Automates individual repetitive tasks that follow rules. |
Human involvement | Requires human intervention | Autonomous, works without human intervention |
In short, BPA tackles entire workflows, while RPA focuses on individual, rule-based tasks.
Hyperautomation is the use of AI with BPA. It opens up new ways for teams to integrate AI, RPA, and advanced analytics to automate complex end-to-end business processes.
AI facilitates RPA to do more than just execute deterministic rule-based tasks. It helps read, classify, predict, and learn from complex variable inputs. Hence, in hyperautomation, AI guides RPA bots, as it can dynamically adapt rules.
Hyperautomation leads to further cost reduction and improvement in productivity. It also enables improved decision speed with intelligent document processing.
What Are The Core Components of an AI-BPA Stack?
The AI-BPA stack is built on four core components that power intelligent automation:
- Data capture
- Processing engines
- Orchestration layer
- Monitoring & governance
Here’s how each component of the AI-BPA stack works:
- Data Capture: AI-powered OCR systems improve accuracy and capture rate. The same is true for AI-powered IoT integrations capable of working with real-time data streams. All of these lead to “smart data capture,” which ensures better data collection from different sources (unstructured and semi-structured).
- Processing engines: Businesses can use processing engines in the form of ML models and LLM APIs. In business settings, ML models can help classify, predict, and make decisions. LLM APIs, on the other hand, provide the means to do better NLP processing and documentation. High LLM classification accuracy improves AI-BPA. (for example, GPT-4 offers 99.9% accuracy).
- Orchestration Layer: Orchestration layer includes RPA, iPaaS (Integration Platform as a Service), and workflow builders. RPA handles the user interface, whereas iPaaS offers pre-built connectors for easy integration with existing systems. With workflow builders, businesses can create automated workflows without knowing how to code.
- Monitoring & Governance: Here, MLOps ensure continuous monitoring of the model performance. It helps improve AI-BPA systems in the long run. Audit logging captures all necessary details about the system to ensure compliance and follow standards such as CADF (Cloud Auditing Data Federation), GDPR, and SOX.
Key Use Cases & Examples by Business Function
Understanding BPA by use-cases and examples can give you a clear understanding of its capabilities and how you can use it in your business settings. Let’s look at the use-cases for the following business functions:
- Customer service & support
- Sales & marketing
- Human resources & recruiting
- Finance & accounting
- Operations, supply chain & logistics
- Procurement & sourcing
- IT & DevOps
- Manufacturing & robotics
Customer Service & Support
With AI-BPA, businesses can transform their customer service and support. They can use AI-powered chatbots and virtual assistance, providing 24/7 support to their customers.
RPA bots can automate ticket classification and route them to the right department based on urgency and complexity. Furthermore, the AI-BPA is capable of understanding tone and intent in customer messages and flagging them for disappointment. This leads to pro-active engagement and higher success in solving customer problems.
For example, Tommy Hilfiger AI customer service reduced call volumes by 40%.
Sales & Marketing
Sales and marketing are among the most impactful areas for AI-powered BPA.
Marketers can use AI-BPA for lead scoring and predictive targeting. With proper leading scoring, conversion rates increase.
Furthermore, marketers can use AI to automate personalized email drip campaigns. This is effective as it re-engages the audience through tailored campaigns. Apple is known to send personalized email campaigns by leveraging customer data.
One e-commerce company used AI to increase customer lifetime value (CLV) by 35% in just 6 months.
Human Resources & Recruiting
AI improves human resources & recruiting in various ways. It starts with resume screening where AI-powered application tracking systems (ATS) shortlist candidates by scanning resumes in a matter of minutes. They analyze skills, job-related keywords, and work history.
Once done, AI can schedule interviews with the potential candidate, reducing interview time-to-schedule significantly.
With AI, HR can know how employee feel about their work. It helps them find work-related issues, such as morale, and helps resolve them.
AI-BPA accelerates hiring and improves employee engagement through intelligent automation. It can reduce time to hire by 75% and also ensure employee well-being.
Finance & Accounting
Finance & accounting benefits immensely from AI-powered BPA.
Businesses can use it to carry out invoice processing and accounts payable automation. They can use AI-powered OCR for fast yet accurate receipt capturing while reducing manual effort.
AI-BPA also helps in fraud detection with AL/ML anomaly detection models. These models monitor each transaction for suspicious patterns and flag them in real-time. Once notified, financial teams can take proper action to mitigate it.
Apart from these, other use-cases/examples include:
- Automated financial forecasting
- Loan processing
- Claims processing
- Reporting and analytics
- Compliance monitoring
In all these, AI with RPA can streamline processes. For example, in loan processing, AI can do automated screening for document verification, whereas RPA streamlines KYC checks.
ThermoFisher Scientific is one of the business process automation companies that reduced time to process invoices by 70%.
Operations, Supply Chain & Logistics
AI-BPA effectiveness is also seen in operations, supply chain & logistics.
With AI’s ability to predict, businesses can do demand forecasting and inventory optimization. The system can do real-time and precise prediction by taking into account the market trends, historical sales and real-time data from POS and IoT sensors.
Logistics also benefits as AI along with computer vision can provide route optimization. Companies like FedEx or Amazon actively plan route using AI and BPA. This enables them to save fuel and time.
Additionally, warehouses can do quality inspection via machine-vision systems. They work in real-time as they use advanced image analysis and camera to find defects, mislabeling or other inconsistencies.
Danone Group uses AI-BPA in supply chain and logistics to reduce 65% in stock-outs.
Procurement & Sourcing
Businesses can speed up their procurement and sourcing with AI. They can do automated vendor data analysis to select the best vendor based on pricing, delivery, and quality.
Furthermore, AI can do effective risk & performance assessment by looking into vendors’ financial records and compliance history.
Additionally, companies can automate order management workflows. It starts with centralized automated order capture that verifies orders from all channels. AI-BPA is also beneficial in automated order routing, real-time tracking, order splitting, and order consolidation.
To reduce human error, AI-BPA also offers automated approvals & authorization by doing digital workflow routing, real-time notification, and audit trails.
A Fortune 500 Oil & Gas company achieved a 15% jump in procurement ROI.
IT & DevOps
Modern IT organizations can use AI-powered BPA to automate and improve their systems and applications. For example, they can automate incident detection and remediation, which can result in a reduction in downtime, analysis and improvised security.
ChatOps can help in proper integration and notification by connecting to popular collaboration tools such as Teams, Slack and Zoom. Additionally, AI-driven runbooks provide automated sets of diagnostics and remediation actions. These can be triggered when a system alert takes place or through ChatOps channel.
AI-BPA is also effective in predictive maintenance of infrastructure. AI models can continuously monitor via IOT telemetry and sensors. So, if a system health issue takes place, they are flagged and resolved, ensuring smooth operations.
AI predictive maintenance ensures 20% fewer outages at WorkTrek.
Manufacturing & Robotics Process Automation (RPA)
AI-BPA can improve RPA when used tactically. For example, manufacturing firms can opt to use robotic arms augmented with vision AI.
These are advanced and can complete tasks with higher efficiency and precision. They can detect objects, perform complex tasks, inspect parts, and handle delicate electronic components with far more accuracy than humans.
Using RPA with AI-BPA opens up for better flexibility as well.
In a more traditional setting, end-to-end RPA can help automate back-office tasks. These tasks are repetitive and hence prone to errors. For example, administrative tasks such as invoice processing or data entry can be automated. Other tasks include data extraction from different sources, such as documents to inventory tracking.
Automated parts assembly leads to faster throughput with RPA and AI-BPA. It reduces overall cost and eliminates manual bottlenecks in assembly.
AI-Powered Business Process Automation Use Cases by Industry
In this section, I’ll discuss the AI-powered BPA use cases by industry.
For a broader look at how AI is transforming business, see our roundup of : Top 20 essential enterprise AI use cases.
Healthcare
AI-BPA transforms healthcare, offering the following use-cases:
- Clinical decision support and diagnostics: Deep learning and AI-powered diagnostic tool help detect diseases with more confidence. The decision support system goes through patient data and helps the system to provide evidence-based recommendations.
- Patient scheduling and capacity planning: With AI, healthcare businesses can provide the best scheduling to their patients, which ensures no overlaps and proper reminders. The capacity planning algorithms offer data-driven proper forecasts.
- Claims processing and billing automation: Claims processing also becomes easier with AI automation using data extraction, verification, and flagging issues. Billing automation helps both healthcare institutes and patients with clearer bills.
- Remote patient monitoring and telehealth workflows: Gives healthcare experts the ability to track real-time patients’ health using AI wearable equipment.
Retail & E-commerce
Retail & e-commerce see improvements in different ways from AI-BPA, including:
- Inventory management and demand forecasting: AI excels at demand forecasting by analyzing historical data. This allows it to predict future demand. Furthermore, AI excels at automated inventory management by relying on real-time data from IoT sensors.
- Personalized recommendations and dynamic pricing: Businesses can use AI to offer personalized recommendations based on customers’ historical and real-time data. Additionally, it can also offer dynamic pricing in real-time by analyzing product demand, inventory status, and competitor pricing.
- Fraud detection in transactions: ML models such as XGBoost algorithm are capable of finding fraud transactions with 99.2% accuracy. Automated fraud detection workflow minimizes chargeback and financial loss.
- Customer churn prediction and loyalty programs: Automation can predict churn by analyzing behavioural signals and other vital information such as engagement. This can help businesses identify customers likely to stop using services.
Banking & Financial Services
Banking and financial services AI-powered BPA use cases include:
- Credit scoring and loan origination workflows: AI can help credit companies to analyze customers and offer more accurate credit scoring by learning about their transactional history and behavioral signals. Additionally, financial institutions can create an automated loan origination workflow which handles activities such as document collection, income assessment, KYC/AML due diligence, and verification. This results in faster approval cycles and lower default rates due to precise risk profiling.
- Automated compliance monitoring and reporting: Banks and financial institutions can ensure complete compliance by automating the process of tracking transactions and matching them against regulatory benchmarks such as GDPR and AML. The system also reports any anomalies.
- Chatbots for customer inquiries: AI-powered chatbots enable the banking sector to serve its customers 24/7, solving their queries in a friendly and responsive manner.
- Risk modeling and fraud prevention: Advanced AI models offer excellent risk management with fraud prevention.
Manufacturing
Here’s how AI-BPA is transforming manufacturing operations:
- Predictive maintenance of machinery: AI can help do predictive machine maintenance, improving equipment life and decreasing downtime and maintenance costs.
- Visual quality inspection on production lines: ML algorithms with IoT sensors can visually inspect products for defect-free production.
- Supply chain optimization: Manufacturers can use AI to optimize business processes for supply chain, including inventory management, procurement, and forecasting demand.
- Robotics-driven assembly and packing: RPA with AI and computer vision can improve assembly and packing by accurately assembling and packing without compromising on speed.
Transportation & Logistics
Transportation and logistics AI business automation use cases include:
- Route optimization and real-time dispatch: AI helps in real-time route optimization, resulting in increased efficiency. The model takes into account multiple criteria including, weather and traffic.
- Warehouse automation and sorting: Warehouse automation helps businesses to ensure proper inventory management.
- Demand forecasting for freight: Predict the demand for freight with advanced AI models that look into relevant data to ensure high accuracy.
- Autonomous vehicle pilots: Enables businesses to offer 24/7 operation with minimal human error and optimized long-haul and last-mile logistics.
Telecommunications
Telecommunication use-cases for AI business process automation include:
- Network performance monitoring and anomaly detection: Automate network monitoring with real-time analysis of network performance metrics. This helps flag issues and report them to the administrator.
- Customer churn prediction: Predict customer churn with proper use of AI models (XGBoost, SVM, Random Forest) and take appropriate action to stop customers leaving your service.
- Automated service provisioning: Use agentic workflow to do service provisioning, ensuring low error rate.
- Predictive maintenance of network equipment: Ensure proper maintenance of network equipment by establishing a predictive maintenance system using AI.
Hospitality & Travel
Hospitality and Travel AI-BPA use-case includes:
- Dynamic pricing and revenue management: Create a dynamic pricing and revenue management automation with AI that learns from historical and real-time data.
- Guest experience personalization: Personalize guest experience by using AI to handle different stages of customer handling, including reservation, conflict resolution, and offering personalized recommendations.
- Automated staff scheduling: Schedule staff more intelligently with AI as it can forecast demand based on time, weather, and special events. It can accommodate staff needs and schedule them without breaking labor regulations.
- Sentiment analysis on reviews and social media: Use AI-powered sentiment analysis to learn how users perceive your brand online. Use them to identify trends and flag issues.
How to Identify High-Impact Business Process Automation Opportunities
There are three ways you can spot business process automation opportunities, including:
- Identify Process characteristics that are automation-friendly.
- Use discovery methods to see which processes can be automated.
- Use prioritization matrix to learn about business impact vs. implementation complexity.
Process Characteristics
Processes with the following characteristics can be automated with ease:
- High volume: processes that run frequently
- Rule-based: processes that follow clear rule-based instructions
- Structured/unstructured data: Data handling processes that deal with structured or unstructured data
- Decision Latency: processes that need input from humans to proceed further.
Discovery Methods
Managers can also use discovery methods to find processes worth automating:
- Process mining: Learn about processes and how they work. It’ll help you to learn about manual steps or bottlenecks which can then be removed via automation.
- Employee interviews: Get direct inputs from employees via interviews to learn what annoys them. Try to automate the process, improving both the system and employee morale.
- Time-in-motion studies: Identify and document labor-intensive and repetitive tasks.
Prioritization Matrix
Use prioritization matrix to learn which process to automate first. This matrix takes two factors into consideration:
- Business impact: what value/benefit the automation will offer
- Implementation complexity: How complex is the implementation?
To help visualize, check the prioritization matrix below:
Low complexity | High complexity | |
High business impact | Implement it first | Weigh benefits to efforts |
Low business impact | Implment it for small gains | Ignore/lowest priority |
How to Get Started: An AI-Powered Business Automation Roadmap
Automating business processes with AI requires careful planning and execution. This process begins with assessing your business operations, followed by the selection and creation of a pilot program designed for frictionless execution and acceptance.
The key steps in AI-powered business automation roadmap include:
- Assess
- Select
- Pilot
- Scale
- Optimize
Assess
The first step is to assess your business process. It’s important to evaluate each process for how automation-ready they are.
For example, a high volume process with pre-defined rules is a great candidate. Other processes that are automation-ready include processes that are:
- Prone to manual errors
- Have bottleneceks
- Have decision latency
- Are rule-based
You also need to take complexity and ROI (return on investment) into account. Evaluation officer can standardize the process for a non-partial approach.
Select
With all potential processes listed, next you need to decide on:
- AI tools such as UiPath, IBM Automation Anywhere, or Blue Prism
- Platforms such as on-premise or cloud, and open-source or commercial
Each choice has its own benefits and disadvantages. For example, open-source gives you more flexibility and customization, but requires technical expertise to set up and manage.
Pilot
During the pilot phase, you need to build a minimum viable automation (MVA) on a high-impact and low-complexity workflow. This will help you define key metrics and also evaluate their performance over a non-automated workflow.
Scale
With clear benefits and KPIs to measure, it’s time to scale the successful pilot project across different organizational functions. For better long-term success, ensure complete automation governance that takes care of change management, workflow standardization, and role-based access.
Optimize
Teams must now focus on continuous improvement by monitoring processes in real time. They should optimize the AI models and workflows as per feedback and metrics. This will further improve workflow and efficiency of the AI-BPA systems.
Top Benefits of AI-Driven Process Automation
Here are six key benefits businesses are seeing from AI-powered process automation:
- Cost reduction and efficiency gains
- Improved accuracy and compliance
- Enhanced customer experience
- Scalability and agility
- Data-driven decision making
- Enhanced employee experience
Cost reduction and efficiency gains
With automation, resources are freed up, leading to cost reduction and efficiency gains. It can cut costs up to 30% as it takes care of repetitive tasks such as data entry and invoice processing.
Improved accuracy and compliance
AI process automation leads to improved accuracy and compliance. AI can handle rule-based and manual tasks with almost 100% accuracy. For example, companies can use real-time data processing for tasks such as claims handling, leaves management, and financial reporting.
AI also does well in compliance with popular regulatory requirements such as GDPR and HIPAA.
Enhanced customer experience
Customer experience is improved with more consistent customer experience. For example, AI chatbots can work 24/7, offering instant responses with a higher degree of customer satisfaction. Chatbots can also provide personalized recommendations and work across multiple channels, offering value to both customers and the organization.
Scalability and agility
Automated systems offer agility and are scalable when the demand arises. They can adapt to seasonal changes or during new feature releases.
Data-driven decision making
AI-driven process automation helps in data-driven decision making. This is possible due to real-time data collection and analysis from an automated workflow. It gives management the means to make real-time decisions using predictive models.
Enhanced employee experience
Employees thrive in a workplace where monotonous tasks are taken care of. With AI, employees can focus on meaningful and creative tasks.
Common Challenges & How to Overcome Them
While powerful, AI-BPA comes with a set of implementation challenges, including:
- Data quality and integration hurdles
- Change management and user adoption
- Security, privacy, and compliance concerns
- Balancing human oversight with full automation
Data quality and integration hurdles
IT systems are complex with the use of legacy infrastructure, fragmented systems, and poor data quality. All of these can undermine automation. To overcome, teams must:
- Do proper data cleansing before feeding it to automation
- Establish and follow data governance policies
- Ensure robust middleware to overcome integration issues
Change management and user Adoption
AI inclusion into old workflow can disrupt employees. This can lead users to show a lack of interest or resist. That’s why organizations must invest in proper change management, especially if they want to automate business processes using AI.
Organizations can overcome the challenge by:
- Providing early training to employees
- Keep communication clear, offering strategic intent to shareholders
- Approach change via pilot projects to ensure smooth transition
Security, privacy, and compliance concerns
Automation brings its own set of challenges to an organization’s security, privacy, and compliance. This can be data security issues or matching regulatory compliance, such as GDPR or SOX.
The best way to handle these concerns includes:
- Carry out security reviews regularly and adhere to compliance frameworks
- Use automation platforms such as Secureframe, Drata, and Hyperproof
- Ensure strong rule-based access controls
Balancing human oversight with full automation
Going full automation can lead to many issues. It is critical to keep human oversight. To overcome this challenge:
- Do real-time monitoring of automated processes via dashboards
- Design automation workflows with human oversight
Idea Maker Agency Can Help You Automate Business Processes
Idea Maker is an industry-leading agency with tools and talent to implement, maintain, and scale end-to-end automated business processes.
With our AI development services, you can experience true business automation. We employ cutting-edge AI apps and ensure that you stay in control over your business. To help you at every stage, Idea Maker agency offers:
- AI consultation
- AI software development
- AI agent development
- AI Integration
We offer agents development that takes full advantage of the newest AI models via our ChatGPT development services. You can create ChatGPT apps that work to resolve issues, provide value, and innovate.
Idea Maker has experts in all major sectors, including Gaming, Banking, and eCommerce.
The Bottom Line on AI-Powered Business Process Automation
AI-driven business automation is a tool to grow your business. With correct plan and execution, you can grow your business profits while improving employee morale and customer experience.
AI automation helps in realizing the underlying potential of a business. Undoubtedly, it has a huge impact on current industries and will keep doing so in the future. That’s why it is the best time to adopt business automation for unparalleled growth and reach.