3 good reasons why we do not apply AI in Peppol Commerce
In an era where artificial intelligence (AI) seems to be becoming ubiquitous, promising revolutionary efficiency and personalized experiences, it might be surprising to hear that we at Peppol Commerce consciously choose not to deploy AI. This is not a sign of hesitancy towards technological advancement; on the contrary. It is a strategic decision stemming from a profound analysis of our core activities, the nature of the Peppol network, and what our clients truly need to succeed in cross-border electronic invoicing and trade.
We strongly believe in the power of standardization, the value of simplicity, and the reliability of controlled processes. And it is precisely on these pillars that Peppol Commerce rests. Let’s delve deeper into the three crucial reasons why AI, despite its popularity, has no place in our current service offering.
AI is not needed in a standardized process
The fundamental strength of Peppol lies in its ability to standardize electronic business processes, particularly the exchange of invoices and other business documents. The Peppol network is designed around a set of clear, internationally recognized standards, such as the UBL (Universal Business Language) and the Peppol BIS (Business Interoperability Specifications). These standards dictate precisely how information should be structured, which data elements are mandatory, and how this data should be transported securely and reliably between different parties, regardless of their internal systems or geographical location.
A standardized process, in the context of Peppol Commerce, means that the “route” and the “language” of the information are fixed and universally understood. An electronic invoice sent via Peppol follows a predefined path through the network, with the information delivered to the recipient in a strictly defined format.
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This is comparable to sending a letter via a postal service: the envelope has a standard size, the address is placed in a specific location, and the postal worker knows exactly how to deliver it. The process is efficient, predictable, and requires no complex interpretation or translation by intermediary systems.
Where does AI come into play in processes? AI often excels at analyzing variable data, recognizing patterns in unstructured information, making predictions based on historical data, or personalizing experiences by learning from individual behavior. Think of an AI that sorts emails by importance, a chatbot that answers customer queries with context, or a recommendation system that suggests products based on your browsing history. These applications are valuable when there is a lot of variation, ambiguity, or a need for intelligence that goes beyond strict rules.
However, within the Peppol network, processes are specifically designed to eliminate this variation and ambiguity. The standards ensure that information is always provided in the same, predictable way. An invoice that complies with Peppol BIS specifications is directly processable by the recipient’s system because all necessary information is in the correct place, in the correct format. There is no need for an AI to “understand” what an invoice is, where the payment details are located, or what amount needs to be collected, as these elements are fixed within the structure of the Peppol invoice.
Applying AI to such a standardized process would not only be redundant but could also be counterproductive. It would add a layer of complexity to a system that is built on simplicity and predictability. Imagine needing a simple, standardized screw. You wouldn’t want to hire an engineer to design a complex machine to identify the screw and determine its correct size when you can simply pick the screw out of a box of identical screws. The standardization is the solution.
At Peppol Commerce, we facilitate the seamless, automatic exchange of standardized documents. This means that the sender’s and receiver’s systems can communicate directly with each other, without the need for intermediary “intelligence” to interpret, validate, or transform the data. The value we deliver lies in ensuring that this standardized exchange is error-free and efficient. AI would not improve performance here; instead, it could introduce potential complications because it is not designed to function within the rigid, yet highly effective, boundaries of a universal standard.
Therefore, the first and perhaps most fundamental reason we do not apply AI is that the Peppol network and the processes we facilitate are inherently standardized. The strength of Peppol lies precisely in the predictability and universal interoperability that this standardization brings. AI, with its focus on handling variability and complexity, would be more of a hindrance than an improvement in this context.
Lower complexity and costs
Building on the point of standardization, this directly leads to our second important reason: lower complexity and costs. In the world of Peppol Commerce, we strive to make the process of electronic invoicing and document exchange as smooth and accessible as possible for our clients. This means developing systems and services that are easy to implement, straightforward to maintain, and keep operational costs for our users low.
Integrating AI technology into software and services involves significantly higher levels of complexity. AI systems often require specialized hardware, advanced algorithms that need continuous training and optimization, and deep expertise in data science and machine learning. The development, implementation, and maintenance of these systems are not only time-consuming but also costly. This ultimately translates into the costs borne by the end-user.
Imagine wanting to use a service that helps you send invoices. If this service utilizes AI, it could mean you not only purchase a software package but also a subscription to an AI training service, additional costs for data storage and processing, and possibly even specialized support to understand and leverage the AI features. All of this would significantly raise the barrier to using electronic invoicing, which is contrary to our mission of making this technology broadly accessible.
At Peppol Commerce, we focus on optimizing existing standards and providing a reliable network for their exchange. Our technology is built to integrate seamlessly with companies’ existing systems. This means we focus on robust, proven technologies that enable this integration, rather than on developing complex, new AI models.
The cost structure of Peppol Commerce is therefore transparent and predictable. Clients pay for access to the network and the services they use, without hidden costs for AI processing, data training, or specialized configurations. This makes Peppol Commerce an economically attractive solution for businesses of all sizes, from small startups to large multinationals. The cost savings for our clients not only come from lower direct costs for the service itself but also from the significant efficiency improvements that the standardized and automated process of electronic invoicing brings. Consider the reduction in manual data entry, the elimination of errors when retyping data, and accelerated payment terms due to faster invoice processing.
Furthermore, less complex technology requires less investment in internal training and support for our clients. A system that is easy to understand and use means that companies do not have to retrain their staff in the intricacies of AI, but can focus on their core activities. This significantly reduces the Total Cost of Ownership (TCO) for our clients.
In summary, by focusing on the core of the Peppol network – standardization and direct exchange – we can deliver a service that is inherently less complex. This lower complexity translates directly into lower costs for both us and our clients. It allows us to maintain competitive prices, accelerate implementation, and minimize operational burdens for our users. While AI is scalable in its applications, it is also scalable in its complexity and associated costs, something we consciously want to avoid in our current service offering in favor of accessibility and cost-effectiveness.
Lower risk of errors and uncertainties
Our third crucial reason for not applying AI in Peppol Commerce stems from the desire to minimize the risk of errors and uncertainties. As previously emphasized, Peppol is built on a foundation of strict standards and controlled protocols. This design is not arbitrary; it is a deliberate choice to ensure maximum reliability in a critical business process like exchanging financial documents.
AI systems, however advanced, are inherently susceptible to uncertainties. This often stems from how they learn and function:
At Peppol Commerce, we guarantee the integrity of transactions by relying on the strict specifications of the Peppol standards. When an invoice is correctly formatted according to Peppol BIS specifications, we know it can be processed by any Peppol-compliant system without interpretation issues. The systems we use to facilitate Peppol transactions are designed to maintain and validate these standards. This is a deterministic process: if the input is correct, the output is predictable and correct.
Think of an automated train on a railway track. As long as the train stays on the track and the signals are correct, it will reach its destination efficiently and safely. The complexity lies in the track, not in the train itself. AI in this scenario could be compared to an autonomous car on an unknown road; it tries to interpret and anticipate the environment, which carries more risks.
Using AI in Peppol Commerce would expose us to the inherent risks of this technology. An AI attempting to “understand” or “improve” how a standardized invoice is processed would introduce unnecessary steps that could become potential sources of error. For instance, would the AI interpret a field differently than the standard prescribes? Would it mark a correctly formatted invoice as erroneous because it “expects” something else based on prior, possibly incomplete, data?
By avoiding AI, we minimize these risks. Our systems are focused on accurately and reliably executing defined, standardized processes. This means less uncertainty for our clients. They can trust that when they send an invoice via Peppol Commerce, it will be processed correctly, without the intervention of a system that could introduce new interpretations or unforeseen outcomes.
The result is a controlled, predictable, and therefore highly reliable ecosystem for electronic trade. This is essential for businesses that rely on efficient and error-free financial flows. Our commitment lies in providing a service that maximizes the reliability of standardized Peppol exchange, and we do this by focusing on the core principles of the network, without the added risks that AI would entail.
Peppol Commerce: The power of simplicity and standardization
In the dynamic world of digital transformation, it may seem counterintuitive to deliberately not embrace technologies that are currently gaining traction, such as AI. Yet, our decision not to apply AI in Peppol Commerce is a well-considered choice, rooted in the core principles of the Peppol network itself.
Firstly, there is the intrinsic nature of Peppol as a standardized process. The strength of Peppol lies precisely in the universal language and structure it provides for electronic document exchange. AI, which thrives on variability and pattern recognition, is simply not needed here. The standards eliminate the need for complex interpretation, thus rendering the need for AI obsolete.
Secondly, this focus on standardization leads to lower complexity and costs. By working with proven technologies that implement the Peppol standards, we can deliver a service that is easy to integrate, simple to maintain, and keeps operational costs for our clients low. Avoiding the complex infrastructure and expertise that AI requires allows us to offer a more accessible and affordable solution.
Thirdly, minimizing risks of errors and uncertainties is of utmost importance in financial transactions. The standardized and deterministic nature of Peppol processes guarantees a high degree of reliability. Introducing AI, with its inherent dependency on data, potential “black box” effects, and unpredictability in new situations, could undermine this reliability.
At Peppol Commerce, we believe in the power of simplicity and the efficiency of standardization. Our mission is to support businesses worldwide in streamlining their trade processes through a reliable and standardized electronic invoicing and document exchange network. By focusing on these core values, we offer a solution that is not only effective but also cost-efficient, reliable, and most importantly, immediately usable. The absence of AI is not a deficiency, but a testament to our commitment to the original, powerful vision of Peppol.
