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As spend management space heats up, Brex and Rho turn to AI startups to help power new products on August 2, 2023 at 12:00 am

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The competition in the spend management space continues to intensify.

Brex and Rho today each announced AI-powered/enabled accounts payables offerings.

Their announcements coincidentally came out the same day competitor Ramp announced it had expanded into procurement — further evidence that the companies in the space are clamoring to not only meet customer demand but presumably attempt to outdo each other in terms of what they can offer their customers to help control spend.

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Specifically, Brex today revealed Payables, its AI-enabled Accounts Payable (AP) offering, while Rho announced new AI-powered Accounts Payable automation capabilities. Brex’s offering is live today while Rho said its new capabilities will be live later this month.

Via email, Brex co-CEO and co-founder Henrique Dubugras told TechCrunch that launching the new product had been “in the works” since the startup started building Empower, its spend management platform, over a year ago.

He noted that while Brex has used artificial intelligence for years in various capacities such as customer support and underwriting, what is new now is that it partnered with “multiple” machine learning companies such as Scale AI and Photon “to drive the highest accuracy of information extracted from invoices.”

Prior to this launch, Dubugras said that Brex offered a lighter version of bill pay that gave customers the ability to send scheduled and recurring payments. Now, he said they will “have even more advanced spend controls with multi-level approvals.” 

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For its part, Rho said it is offering AI-powered invoice and bill processing to its clients. Specifically, invoices sent to a designated AP inbox will “undergo automatic digitization” powered by generative AI technology.

In a statement, the company said the process “transforms the invoice into a bill and creates a corresponding liability in the client’s integrated ERP system. Clients can then authorize bill payments through Rho one by one or in bulk, with liabilities automatically marked as paid in the ERP.”

Rho CEO Everett Cook told TechCrunch via email that the new capabilities had been in the works for nearly a year, building on the company’s initial accounts payable release in 2021. Rho has partnered with OpenAI — a portfolio company of Rho investor DFJ Growth.

With the new product, he claims, customers will be able to “configure one-click workflows that help finance teams process thousands of payables in seconds.”

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“Our position on generative AI is that it is only useful if it is grounded in tangible business value,” said Rishav Chopra, SVP of product & design at Rho. 

Large opportunity

Besides wanting to better compete, both Brex and Rho expect their new offerings to increase revenue for their respective companies. 

Dubugras said the new payables product should increase the percentage of customers’ spend processed via Brex.

As a result, some of that spend will be on their Brex card, one way in which Brex earns revenue,” he told TechCrunch. “Plus, using a Brex business account for bill pay, another way in which Brex earns revenue, allows customers to send payments faster, eliminating ACH delays while also earning passive yield.”

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Brex claims that it is unique relative to other companies in the market in that it is “the only player” with its own business account that can earn revenue in this way, allowing the company to offer payables for free. (TechCrunch has not independently verified this claim.)

Meanwhile, Rho’s Cook believes that while the “timing is pretty coincidental” with Brex’s announcement, he supposes each of their customers were telling them “the same things” — that “they’re fed up with their legacy AP providers and want a modern solution that’s directly integrated with the rest of their finance stack.”

Legacy providers include the likes of Bill.com and Concur.

Dubugras believes there is a lot of competition in the space for a very good reason, telling TechCrunch: “The spend management space is very dynamic and that is because the opportunity is so large across SaaS and payments. Beyond the noise there is still a lot of differentiation between the players.”

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Rho’s Chopra also believes that the current macro environment has led to increased pressures on the part of CFOs and finance teams “to move faster than ever and operate leaner.” This in turn has — for obvious reasons — created more demand for spend management products.

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​ The competition in the spend management space continues to intensify. Brex and Rho today each announced AI-powered/enabled accounts payables offerings. Their announcements coincidentally came out the same day competitor Ramp announced it had expanded into procurement — further evidence that the companies in the space are clamoring to not only meet customer demand but presumably 

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Humans Need Not Apply: The AI Candidate Promising to Disrupt Democracy

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The rise of AI Steve, the artificial intelligence candidate running for a seat in the UK Parliament, has sparked a heated debate about the role of AI in governance and the potential disruption it could bring to traditional democratic processes.

Steven Endacott, the human force behind AI Steve, envisions his AI co-pilot as a conduit for direct democracy, enabling constituents to engage with the AI, share concerns, and shape its policy platform through a voting system of “validators.” Endacott has pledged to vote in Parliament according to the AI’s constituent-driven platform, even if it conflicts with his personal views.

Proponents argue that AI Steve can revolutionize politics by bringing more voices into the process and ensuring that policies truly reflect the will of the people. They claim that an AI candidate can engage in up to 10,000 conversations simultaneously, allowing for unprecedented levels of public participation and input.

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However, critics raise valid concerns about transparency, accountability, and the potential for AI systems to be manipulated or influenced by their creators, data limitations, or external actors. There are also questions about whether an AI can fully grasp the nuances and human elements involved in complex political issues.

Some argue that AI Steve is merely a clever marketing ploy to garner attention and votes, rather than a genuine effort to “humanize” politics. There are fears that the use of AI in elections could undermine faith in electoral outcomes and democratic processes if voters become aware of potential scams or manipulation.

 

Beyond the specific case of AI Steve, the rise of AI candidates and the increasing use of AI in political campaigns and elections raise broader questions about the integrity of democratic systems and the need for effective regulations and guidelines.

Anti-democratic actors and authoritarian regimes may seek to exploit AI technologies for censorship, surveillance, and suppressing dissent under the guise of enhancing governance. There are also concerns about the potential for an “AI arms race” between political parties to develop and deploy the most sophisticated AI technologies, further eroding public trust.

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As AI tools become more advanced and accessible, upholding electoral integrity will require proactive efforts to establish guardrails, transparency measures, and accountability frameworks around their use in politics. Policymakers, advocates, and citizens must work together to ensure that AI is leveraged as a force for a better and more inclusive democracy, rather than a tool for manipulation or consolidation of power.

The rise of AI candidates like AI Steve serves as a wake-up call for democratic societies to grapple with the implications of artificial intelligence in governance and to strike the right balance between harnessing its potential benefits and mitigating its risks to the democratic process.

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Saudi Arabia Says ‘Thank You, Next’ to the US Dollar

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Saudi Arabia is reportedly considering abandoning the US dollar for oil trade settlements, a move that could shake the foundations of the global financial system. For decades, the petrodollar system has propped up the dollar’s status as the world’s reserve currency, with Saudi Arabia insisting on dollar payments for its vast oil exports.

However, recent comments from Saudi officials hint at exploring alternatives to the dollar amid growing tensions with the US over various geopolitical issues and the rise of economic powerhouses like China.

Implications of a Petrodollar Shift

If Saudi Arabia abandons the petrodollar, the implications could be significant:

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1. Dollar Dominance Eroded: The dollar’s reserve currency status could weaken, potentially leading to a decline in its value.
2. Global Financial Instability: A sudden shift could trigger volatility in global markets as investors adjust portfolios.
3. Geopolitical Realignment: The move could signal Saudi alignment with China and challenge US economic hegemony.

Challenges and Uncertainties

While the prospect is significant, challenges remain:

1. Finding a suitable alternative currency with the dollar’s liquidity and stability.
2. Potential economic disruption for Saudi Arabia and trading partners.
3. Political backlash and strained relations with the US and allies.

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As the world watches, it remains uncertain whether Saudi Arabia’s comments signal a negotiating tactic or a profound shift in the global financial order.

 

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X Opens the Door to Adult Content With New Policy

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X, the social media platform formerly known as Twitter, has made a significant policy shift by officially permitting adult content on its platform with some restrictions and guidelines.

In an update to its rules, X stated that users can now share “consensually produced and distributed adult nudity or sexual behavior” as long as it is properly labeled and not prominently displayed in areas like profile pictures or header images.

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“We recognize that many of our users are adults who want to freely express themselves by sharing legal adult content,” said an X spokesperson. “At the same time, we have a responsibility to protect minors and prevent exposure to explicit material without proper labeling.”

Under the new guidelines, users who “regularly post” adult content must adjust their settings to automatically mark images and videos as sensitive content, which blurs or hides the media by default. By default, users under 18 or who haven’t entered their birth date cannot view this sensitive adult content.

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The policy prohibits content “promoting exploitation, nonconsent, objectification, sexualization or harm to minors, and obscene behaviors.” It applies to all adult content, whether photographic, animated, or AI-generated.

X has stated that it will monitor user-generated content and adjust account settings for those who fail to properly mark pornographic posts. Similar rules and enforcement will apply to violent content as well.

The move aligns X with Apple’s app store guidelines, which allow apps with adult content as long as it is hidden by default and behind proper age gates and content warnings.

While adult content was already present on X, this policy update officially permits and regulates it, aiming to balance freedom of expression for consenting adults with protecting minors from exposure to explicit material.

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However, enforcing these rules consistently may prove challenging for X’s reduced content moderation teams following recent layoffs and cost-cutting measures.

The policy shift has drawn mixed reactions, with some praising X for embracing adult expression while others raise concerns about the potential for the platform to become inundated with pornographic content despite the restrictions.

As X navigates this new territory, the effectiveness of its labeling requirements, age verification measures, and content moderation efforts will be closely watched by users, regulators, and advocacy groups alike.

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If you want to create awesome branded experiences that truly captivate your audience, look no further than Bolanle Media. Our team of experts specializes in crafting immersive, unforgettable events that seamlessly blend creativity and strategy. From product launches to experiential marketing activations, we’ll ensure your brand makes a lasting impression. With our finger on the pulse of the latest trends and technologies, we’ll help you engage customers in innovative ways they’ll be buzzing about. Don’t settle for ordinary – let Bolanle Media elevate your brand with extraordinary experiences tailored to your unique vision. Click this link to learn more and take your marketing to new heights.

 

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