Home / AI Transformation Areas / Order-to-Cash
Use case 02 · EBITDA lever: Working capital recovery + DSO improvement

AI-Driven
Order-to-Cash.

DSO
−5–15%
3–9 days vs. 60-day base
Collections FTE
−20–40%
redeployed to high-value
Auto-match
85–95%
from 60–70% baseline
Engagement
12–16 wks
$250–500K

Typical mid-market ranges, not guarantees, your single target metric is agreed in week 1.

§ The problem

DSO sits at 55–75 days. The collections team is firefighting.

Disputes are resolved ad-hoc by whoever picks up the phone. Cash application is manually matched. Invoice errors caught downstream cost more to fix than to prevent. Working capital tied up in AR is one of the cleanest EBITDA-adjacent levers an operating partner can pull, and one of the hardest to fix without redesigning how the function operates.

§ What we deliver

Seven things, in order.

  • Process redesign of the O2C cycle: order entry, invoicing, collections, dispute management, cash application.
  • AI agents for invoice generation and pre-send validation: catching errors before they delay payment.
  • AI agents for dispute identification, classification, and routing: prioritized by value and likelihood-to-resolve.
  • AI agents for collections prioritization and outreach drafting, calibrated to customer payment patterns.
  • AI agents for cash application matching, raising the auto-match rate and routing exceptions intelligently.
  • Deduction analytics with root-cause categorization, surfacing systemic issues for upstream fix.
  • Change management: collections team training, AR dashboards for the CFO and operating partner.
§ Expected outcomes

Calibrated, not promised.

DSO
5–15% reduction
Collections FTE
20–40% reduction
Disputes within SLA
+30–50%
Cash application auto-match
60–70% → 85–95%
Working capital release
DSO Δ × daily revenue
Dispute resolution time
days → hours
§ Prerequisites for success
  • ERP and AR system with accessible historical AR data.
  • Defined collection policies (or willingness to define them in-engagement).
  • Engaged CFO or VP Finance as executive sponsor.
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