The introduction of artificial intelligence (AI) has reshaped almost every size of business by complex task automation. This transformation gave rise to new sophisticated tools like Copilots, RPA, Low-code and No-code platforms. Traditionally, industries struggled with high costs, lack of decision-making, errors in processes, inflexibility in legacy systems, repetitive tasks and difficulties in scaling operations to meet consumer demands. Collectively, these drawbacks led to customer dissatisfaction and overall lost productivity. In addition, there was a need for a scalable solution like RPA that could streamline operations, enhance accuracy, and reduce costs. But how? Let’s find out. In this article, you will learn what is robotic process automation, how RPA works, and how RPA and AI are making a difference in SMBs by automating processes while staying within
What is Robotic Process Automation?
Robotic Process Automation (RPA) is software used to automate repetitive tasks in business and IT processes. It functions with sets of instructions called software scripts. These scripts mimic the way a person would interact with software. It includes actions like clicking buttons, entering data, or navigating through menus. Moreover, using RPA time-consuming tasks and manual effort get automated. It results in allowing users to set up these scripts using coding or through easy-to-use tools. These tools do not require programming skills. Lastly, when the scripts are done, they can run automatically across different systems which will free up time for employees and they can focus on more valuable work.
RPA use is growing day by day, according to GlobeNewswire, the global robotic process automation market size was valued at USD 2.8 billion in 2023. Now, the market is projected to grow from USD 38.4 billion by 2032, exhibiting a CAGR of 33.8% during the forecast period.
How RPA Works?
Robotic Process Automation (RPA) functions by automating many manual tasks to eliminate repetitive errors, making business processes smoother and more efficient. RPA functionality includes Six key aspects. All these functions make RPA handle a range of tasks which makes employees less burdened and drained ultimately no human errors and more focus on other tasks. Here are the key aspects:
- Internal System Interface: RPA can connect with older systems. This function helps in data transfer from outdated platforms to newer ones without any hitch.
- Extract Data From Web: RPA can also pull data from the web like gathering competitor pricing, stock prices, or product info automatically.
- System Interface to Outside: RPA can communicate with external systems such as online banking or other data interfaces to share and collect information across organizations.
- Data Matching: RPA is handy software to tally data by validating information, identifying any unusual results, and making sure that contracts or documents match up accurately.
- Data Simulation: This AI technology can simulate data for testing or analyzing reports. For example, it can handle multiple sets of information at once to make decision-making easier.
- Operate Internal Application: RPA is capable of working within internal applications. It is designed to trigger workflows, send emails, or run searches based on set terms.
RPA Benefits for SMBs
RPA can provide numerous benefits to every size of business, including quick scalability, streamlining operations, saving costs, and allowing small teams to handle higher workloads with greater accuracy. Here are some key benefits of RPA that can help smaller businesses compete more effectively:
1. Boosts Efficiency:
Robotic Process Automation for SMBs can automate manual and repetitive tasks that are time-consuming and prone to human errors including data entry, report generation, and inventory updates. When bots handle these processes 24/7, businesses get improved turnaround times. Their employees can focus on high-value activities to work more efficiently and for SMBs, there’s no need to hire additional staff.
2. Reduces Costs:
SMBs usually have budget constraints when it comes to hiring more resources. However, RPA offers a cost-effective way to achieve more without hiring or outsourcing any resources. RPA and AI automate labour-intensive tasks which cut down on labor costs and minimizes the expenses related to human errors. As a result, it allows SMBs to reinvest the savings into growth areas like product development or customer acquisition.
3. Improves Accuracy and Reliability:
RPA reduces human error in tasks including invoice processing, order entry, and payroll. These are areas where SMBs could cost more if there is any mistake. However, integration of RPA in business can provide only consistent and accurate results. reducing the need for rework and building customer trust by delivering reliable services.
4. Enables Scalability and Flexibility:
RPA for small business is a scalable solution that can adapt to their growth. As business demands fluctuate, bots can be scaled up or down. It allow SMBs to meet seasonal or unexpected spikes in work without the tiredness of hiring temporary staff. In addition, the flexibility provides value to small businesses looking to grow sustainably.
5. Enhances Compliance and Security:
Small businesses from industries like finance or healthcare(regulated industries) face strict compliance requirements. But, if RPA is integrated, it helps ensure that all tasks follow set rules and maintain accurate logs for audits. It can automate data handling and process tasks in no time. As a result, SMBs can thrive with more easily meet compliance standards. Also, there will be a reduced risk and a protected business reputation.
Use Cases of RPA for Businesses
RPA can go further from streamlining processes and addressing practical needs in real-time. It can boost operational efficiency across various industries. Here are RPA use cases with it’s additional practical applications:
1. RPA in Customer Service:
Robotic Process Automation can make routine customer inquiries automated. It includes tasks like account updates, order tracking, and FAQs. Further, it can handle data entry and transfer between systems to enable agents to focus on more complex customer issues. In addition, RPA provides instant responses to customers through chatbots and automatically updates CRM systems with customer interaction details. Ultimately, ensuring a complete history for future service needs.
2. RPA in E-commerce:
RPA in e-commerce automates order tracking to keep customers updated at each stage mentioned in the image above. This type of automation reduces the need for manual support. It provides timely notifications which keeps customers informed throughout the shipping process. The major benefit of RPA for e-commerce businesses is that it enhances satisfaction and reduces “Where is my order?” queries. These routine updates if automated, e-commerce companies can surely improve efficiency and focus on complex customer needs.
3. RPA in Accounting:
RPA in fintech is utilized for the automation of invoice processing, accounts payable/receivable, financial reporting, and compliance checks. These complex tasks when done by humans repetitively can be prone to errors. That is why automating these tasks ensures timely financial management. Moreover, RPA reconciles bank statements with financial records and automatically flags discrepancies. As a result, it helps maintain accurate records without manual effort.
4. RPA in Banking:
RPA in banking can be used to automate tasks like loan processing, customer onboarding, fraud detection, and compliance reporting. It can be used for verification processes like KYC (Know Your Customer) and AML (Anti-Money Laundering) checks. In addition, this AI-driven technology can automate credit checks for loan applicants and monitor transactions for suspicious activities. As a result, RPA integration in banking can reduce fraud risk rates and enhance security rates.
5. RPA in Healthcare:
RPA in healthcare mainly in EMR short for electronic medical records can automate data entry, patient scheduling, and insurance claim processing. RPA can handle administrative tasks and as a result, healthcare providers get improved accuracy, saving time to focus more on patient care. It can also be integrated to update patient records in real-time after each interaction for timely follow-ups by automating reminders for patient appointments.
RPA Ongoing Adoption Across Industries
Studies show that in 2023, 31% of companies have adopted Robotic Process Automation (RPA), up from 26% in 2022 and 20% in 2021. However, Deloitte demonstrates it further, 53% of respondents have started their RPA implementation journey. Moreover, it is projected to have an increase of 72% in 2026.
RPA Quantitative Benefits Across Multiple Dimensions
- Improved compliance (92%)
- Improved quality/accuracy (90%)
- Improved productivity (86%)
- Cost reduction (59%)
Moreover, the report says that 78% of those who have already implemented RPA expect to significantly increase investment in RPA over the next three years, yet scaling RPA is proving more difficult than anticipated: only 3% of small businesses have scaled their digital workforce.
RPA Applications in Action
After the reports, we can say that RPA drives cost optimization boosts efficiency across industries and is marking a significant step in business’s digital transformation. Here are some real-life examples of RPA applications across various industries:
Account Opening & KYC Verification:
HSBC and Deutsche Bank are already using RPA to automate the account opening process and verify customer identities through KYC checks.
Mortgage Processing:
A company, Wells Fargo is using RPA to get streamlined mortgage applications. They quickly verify documents and reduce processing time from weeks to days.
Claims Processing:
UnitedHealth Group automates insurance claim processing using RPA to speed up approvals and reduce errors.
Considerations For SMBs Before Integrating RPA
When small businesses decide to implement some technology in their operations, they should be aware of the risks and considerations to take. Do you know apart from all the challenges mentioned in the article, there is another significant issue that small businesses face? It is data breaches that can lead to substantial financial losses due to being an easy target for cybercriminals. According to IBM’s report, the global average cost of a data breach has reached $4.88 million, a figure that could be devastating for small enterprises. RPA for small businesses can mitigate these risks by automating routine security tasks. It is a cost-effective and impactful solution for small businesses aiming to protect themselves from costly data breaches.
However, implementing Robotic Process Automation (RPA) can be a game-changer for small businesses. It can help in many ways including streamlining operations, low costs, mitigating risks and improved productivity.
- First, Identify suitable tasks for automation. Businesses should look for repetitive, rule-based processes that don’t require complex decision-making. For example data entry, invoice processing, and customer service queries.
- Second, apart from these, businesses should consider affordable RPA tools like UiPath Community Edition and Automate.io. Using these tools can make it easy for small businesses to test automation on a budget.
- Third, begin with a simple pilot project to understand the tool’s capabilities and assess potential returns. Businesses should also invest in employee training, it will ensure smoother implementation.
- Ultimately, if a business starts by considering these points can start small and scale strategically. Moreover, RPA can enable small businesses to stay competitive and provide a roof for higher-value work.
The Robots Are Ready, Are You?
Small businesses can make their future efficient by adopting AI technologies. OptimusFox is a pioneer in AI development services providing a suite of subservices like Robotic Process Automation (RPA) for all sizes of businesses. OptimusFox aims to empower businesses through intelligent automation solutions to streamline operations, reduce costs, and enhance productivity. If you are a small business or even an enterprise and need to revolutionize your processes and drive growth, get advanced RPA solutions.
Final Words
AI was once limited to adoption for enterprises and large businesses but now AI and related technologies like RPA (Robotic Process Automation) are accessible for small and medium-sized businesses (SMBs) looking to optimize operations. Moreover, according to stats, AI and RPA are projected to see transformative growth in 2024, with RPAaaS (RPA as a Service). This service is a new trend that enables end-to-end workflow automation, driven by trends like hyper-automation that combines RPA, AI, and machine learning. It enhances security, integration with Business Process Management (BPM), and robust continuity solutions. These features are setting the stage for more intelligent, secure, and resilient automation ultimately helping SMBs stay competitive and innovative.
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