Identifying patterns in vast amounts of data is one of the tasks that artificial intelligence excel at. A number of startup have sprung up in the last few years to offer products that automate accounting tasks, like redacting sensitive info in paperwork and filing forms across different departments. It's low hanging fruit.
Accounting-focused artificial intelligence is profitable. The Series A funding round was led by GGV Capital and ICONIQ Growth with participation from Cowboy and Costanoa.
The new money will be put towards customer acquisition in North America and will be added to the Vic.ai platform.
In the next stage of growth, Vic.ai will be able to automate other elements of finance by expanding its artificial intelligence solution to manage and analyze all these tasks. "'Artificial Intelligence' has been a hot concept for a long time, but large enterprises are just now getting to the point where they're ready to adopt at scale, and they're doing so with a focus on specific functions such as accounting and finance."
The company was founded by two Norwegian entrepreneurs. The Online Backup Company is a European backup and disaster recovery service provider. The founding of Telipol, a wireless carrier in Norway, was led by Roil.
The first iteration ofVic.ai was built by training the platform on historical accounting data and processes from tens of thousands of companies. Accounting documents and journal entries from the training data set were reviewed by accountants. As a result of this live usage, Vic.ai was able to provide almost complete autonomy for transaction processing.
Invoices and expenses that meet a certain confidence threshold are automatically sent to approvers byVic.ai. The number of steps in an invoice approval process is determined by the platform.
According to Hagerup, Vic.ai uses the invoices that it processes for customers to improve its performance The data on the platform is retained for seven years, but the data from the US and EU is kept separate.
Vic.ai has good fortune in an industry that is embracing automation. A survey of 200 companies and financial institutions found that while management priorities and IT availability remain the top blockers to automated workflows, just over a third of respondents said they would spend more on accounts payable automation technology within the next two years.
This is reflected in the customer base ofVic.ai. The company now has 60 enterprise customers with an active user base that has grown 280% compared to the previous year. He said that the contracted annual recurring revenue tripled in the year 2022.
The accounts payable automation is being changed into true autonomy by the company. Some of our competitors offer solutions based on rules and templates, but our unique approach sets us apart. The move from on-prem manual routines to a cloud based solution with audit trails and compliance features is favorable to IT C-level managers.
The accounts receivables management and automation space has a number of vendors competing. According to MarketsandMarkets, the accounts payable automation market is expected to grow to $3.1 billion by the end of the decade. At an $8.3 billion valuation, Tipalti is the most formidable.
In order to beat back its rivals, New York–based Vic.ai has expanded rapidly and invested in building out its artificial intelligence-powered purchase order matching technology.
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