Are you using artificial intelligence to support your debt collection efforts? If not, you may want to employ the powers of AI to assist and boost your recovery rates on accounts receivable.
Despite fears that AI will replace all human functions, AI won’t replace your collections department. However, your collections department can work together with AI to achieve improved results.
We asked ChatGPT what are some ways AI can help boost recovery rates for past-due receivables. Here’s what it recommended.
Predictive Analytics
AI can estimate the likelihood of on-time payments by analyzing historical data and past consumer behavior. You can use AI as a tool to identify accounts that have a high likelihood of late or defaulted payments. By giving these accounts top priority, you can effectively allocate your resources and concentrate on collections that have the best possibility of being successful.
Automated Communication
AI-powered chatbots or virtual assistants can handle routine customer interactions, such as:
- Reminding consumers to make payments
- Addressing billing inquiries
- Providing account information
Automating these processes can help creditors work more efficiently by reducing the need for manual follow-ups.
Systems to Support Decision-Making
AI can evaluate a range of factors, including client history, payment patterns, industry trends, and economic indicators, and suggest the best techniques for maximizing collection rates. This gives creditors the information they need to decide when to step up their collection operations, offer discounts or other incentives, or employ different tactics for different consumer segments.
Data Visualization and Integration
AI can visualize and analyze data from many different sources, including external databases, CRM platforms, and accounting software. Creditors can get a clear picture of their portfolio of receivables, see trends or bottlenecks, and make tactical decisions to expedite the collection process.
Fraud Detection
AI systems can identify patterns that indicate fraudulent activity, such as identity theft or fake invoices. By using machine learning algorithms, AI can review vast amounts of data and identify anomalies or dubious transactions. This helps creditors prevent losses and proactively lower the chance of fraud.
Payment Prediction and Optimization
AI may look at transactional data, market trends, and consumer payment histories to estimate cash flow and enhance payment schedules. By being informed of the timetable and volume of anticipated payments, you can better manage your finances, plan for unforeseen events, and maximize working capital.
While AI can help with collection efforts, effective receivables management requires human engagement. Together, AI capabilities and competent human data collectors may provide better data and strengthen consumer interactions.
At FFGN we’re constantly exploring the latest technologies and tools to help get our clients paid, including AI. Have questions, contact us at (212) 686-0100 or send us an email.
