AR Automation is Booming (And Most Businesses Are Missing Out)

The accounts receivable automation market is growing at nearly 12% annually, yet 83% of businesses haven't fully automated. Here's why that gap is an opportunity.

3
 min. read
October 20, 2025

There’s a striking disconnect in accounts receivable right now.

The AR automation market has grown to $3.4 billion and is projected to reach nearly $6 billion by 2030. Investment is pouring in. The technology has matured significantly. Yet according to recent PYMNTS research, 83% of businesses still haven’t fully automated their AR operations.

Why the gap? And more importantly, what does it mean for businesses willing to close it?

Why Most Businesses Haven’t Made the Move

The hesitation is understandable. Traditional AR automation tools often meant:

  • Expensive enterprise software with complex implementations
  • Generic reminder systems that annoyed customers without improving results
  • Rigid workflows that couldn’t adapt to different customer relationships
  • High ongoing costs that didn’t make sense for smaller invoice volumes

For sole traders and SMBs, the available options were often either too expensive, too complicated, or simply not designed for their scale.

What’s Changed in 2025

The AI advances of the past year have fundamentally shifted what’s possible for AR automation:

  • Intelligent communication: AI can now handle nuanced, personalised follow-ups rather than generic template-based reminders
  • Lower barriers to entry: Sophisticated AI is no longer exclusively enterprise-priced
  • Better integrations: Tools connect seamlessly with accounting platforms like Xero, MYOB, and QuickBooks
  • Proven results: Early adopters are seeing measurable improvements in days sales outstanding and cash flow

The Advantage of Moving Now

While 83% of businesses are still doing AR the old way, early adopters are gaining ground. The benefits compound over time:

  • Faster payments: AI-powered follow-ups that adapt to each customer get results that generic reminders don’t
  • Recovered time: Hours previously spent chasing invoices become available for actual business work
  • Better cash flow: Reduced days sales outstanding means more predictable finances
  • Maintained relationships: Professional, intelligent communication doesn’t strain customer relationships the way aggressive collection tactics do

The businesses automating AR now aren’t just saving time today. They’re building systems that improve as they collect more data about what works with their specific customers.

The Window Won’t Stay Open Forever

As AR automation becomes standard, the competitive advantage shifts from “having it” to “having had it longer.” The businesses that move first build better customer communication histories, refine their approaches earlier, and establish smoother cash flow operations.

Within a few years, manual AR processes will look as outdated as manually tracking inventory in spreadsheets. The question isn’t whether automation will become the norm, but whether you’ll be ahead of that curve or catching up to it.

Where to Start

If you’re in the 83% that haven’t automated AR, the path forward is simpler than it used to be. Tools like Aiden are designed specifically for the businesses that traditional enterprise software ignored: sole traders and SMBs who need intelligent AR automation without the complexity or cost of enterprise solutions.

You don’t need a massive invoice volume to benefit. You don’t need a dedicated accounting team. You just need to be ready to stop spending your time on work that AI now handles better.

The market has made its direction clear. The only question is when you’ll join it.

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