This is the second post in a blog series on how AI can help insurance claims and corporate legal professionals improve efficiencies and enhance operations. In this post, we’ll address how AI can assist with the challenge of converting invoices into Legal Electronic Data Exchange Standard (LEDES)-compliant formats. And be sure to read the first post in the series, AI is Real—And It’s Helping Corporate Legal and Insurance Claims Professionals.
Time is the one thing all legal and claims professionals wish they had a little more of. Many of them work more than 40 hours a week and still can’t seem to fit everything in because they’re balancing basic job functions with higher level responsibilities. On the one hand, they’re allocating hours to managing invoices, while on the other, they’re being asked to develop strategies that keep customers happy and move their businesses forward.
But there are only so many hours in the day. Eventually, something has to give.
With corporate legal departments (CLDs) and claims teams taking on greater responsibilities, they need solutions that can help them manage some of their more time-consuming basic responsibilities. Invoice management is one such activity that would benefit greatly from increased efficiency.
The question is: how?
Invoice processing is essential, but…
Invoice processing is one of the most time-consuming yet essential aspects of a claims or corporate legal professional’s job. Charges need to be checked, line-by-line, to ensure compliance with billing guidelines. This includes deciphering the shorthand used in invoicing, which varies greatly by the company that is submitting the invoice and the activity being conducted. Multiply this by the hundreds of legal and claims invoices a medium-sized company receives each month, and you can get a sense for how much time invoice review takes away from more value-added work.
Worse, many invoices arrive in either paper or non-LEDES compliant formats, like a locked PDF or image file. These invoices can’t be adjusted or appealed using the automated tools of a legal management system, and the data they contain can’t be easily captured or analyzed.
In order to leverage the advantages of an ELM platform, invoices that are non-LEDES compliant must be manually keyed into the system into a LEDES format. Going this route requires that organizations assign staff members to low-value work or hire more employees—at an additional cost. Even then, the process itself is highly inefficient, as it is prone to human error and can take an enormous amount of time.
AI to the rescue
AI can automatically capture and convert non-LEDES invoices without the need for manual data entry. As such, it can save teams hours and alleviate the need to manage a time-consuming and headache-inducing process.
Invoice conversion can be easily executed by Wolters Kluwer’s ELM Solutions’ Intelligent Invoice Conversion solution. This AI-driven service helps claims teams and CLDs greatly improve efficiency and control legal spend by assigning the task of invoice conversion to the AI.
Here’s how it works. When a paper or PDF invoice is submitted, the invoice details are “read” by the AI, parsed, and populated into a standardized LEDES template. Our team of human experts reviews the invoice for accuracy. Finally, the invoice is submitted to ELM Solutions’ Passport® or TyMetrix® 360° for electronic processing.
Taking the responsibility of invoice conversion out of the hands of legal professionals and handing it over to the AI results in several advantages. Claims managers and CLDs can identify non-compliance more easily, and bill review cycles are shortened. Managers and CLDs now have the ability to capture 100% of their invoices. This allows them to capture and analyze any part of their legal spend, including key line items pertaining to timekeepers and their rates and Uniform Task-Based Management System (UTBMS) codes. Perhaps most important, claims managers and corporate legal professionals have more time to focus on critical tasks that require higher-level thinking and judgment, which is where they excel.
If you’d like to learn more about how AI can help with invoice processing, be sure to check out our whitepaper for your industry:
- Artificial Intelligence in Claims Litigation: Meeting Challenges and Predicting the Future
- Artificial Intelligence in Corporate Legal: Meeting Challenges and Predicting the Future