East & Partners

Can CFOs Reduce DSO With AI and AR Automation?

(16 October 2025 – Global) As corporates face increasing pressure to maintain liquidity and financial stability, reducing Days Sales Outstanding (DSO) and streamlining Accounts Receivable (AR) has become a top strategic priority for CFOs.

The growing adoption of AI-driven AR automation is emerging as an effective solution for fine tuning collections, accelerate cash inflows and enhancing working capital efficiency.

DSO measures the average number of days it takes a company to collect payments after a sale. High DSO levels indicate delayed collections, impacting cash flow and limiting a company’s ability to reinvest in growth. DSO remains elevated for many enterprises due to fragmented data, manual reconciliation, inconsistent follow-ups, and lack of visibility into outstanding invoices.

Companies that leverage AI in their receivables processes report an average DSO reduction of 20-30 percent, compared to organisations still relying on manual systems

“Reducing DSO is no longer just a collections function – it’s a data-driven finance strategy. CFOs often struggle with limited tools for forecasting payment behaviour or identifying at-risk accounts early enough. AI and automation give CFOs the visibility and foresight to make faster, smarter cash flow decisions” commented Kapittx CEO Kumar Karpe.

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