How to Use AI Agents in Dunning Workflows

Learn how to use effective agentic workflows and discover why they are so much more effective than the standard rule-based dunning workflows.

What Are AI Agents in Dunning?

AI agents represent a fundamental shift in how businesses approach accounts receivable management. Unlike traditional rule-based systems that follow rigid if-then logic, AI agents can understand context, make decisions, and adapt their approach based on customer behavior and payment history.

These intelligent systems can analyze vast amounts of data in real-time, identifying patterns that humans might miss and adjusting collection strategies accordingly. They work 24/7, ensuring no invoice falls through the cracks while maintaining a professional, personalized touch in every interaction.

The Limitations of Rule-Based Dunning

Traditional dunning workflows rely on predetermined rules: send reminder 1 at 7 days overdue, reminder 2 at 14 days, escalate at 30 days. While this approach provides structure, it lacks the flexibility needed for modern business relationships.

"Rule-based systems treat all customers the same, regardless of their payment history, relationship value, or current circumstances. This one-size-fits-all approach often damages customer relationships and reduces collection effectiveness."

How AI Agents Transform Collections

AI agents bring intelligence and adaptability to the collections process. Here's how they make a difference:

1. Contextual Communication

AI agents analyze previous interactions, payment patterns, and customer data to craft personalized messages. A long-time customer who occasionally pays late receives a different approach than a new customer with consistent delays.

2. Dynamic Timing

Instead of fixed schedules, AI agents determine the optimal time to reach out based on when customers are most likely to respond and pay. This might mean adjusting for time zones, business hours, or historical response patterns.

3. Intelligent Escalation

AI agents know when to escalate issues to human team members. They can identify situations requiring personal attention, such as disputes, financial hardship, or high-value accounts, ensuring the right level of human involvement at the right time.

Implementing AI Agents in Your Workflow

Getting started with AI-powered dunning doesn't require a complete overhaul of your existing processes. Modern platforms like Paraglide integrate seamlessly with your current accounting software and CRM systems.

The key is to start with clear objectives: What are your current DSO metrics? Where do customers typically drop off in the payment process? What percentage of invoices require manual follow-up? AI agents can address these specific pain points while learning and improving over time.

Measuring Success

The impact of AI agents in dunning workflows is measurable and significant. Companies typically see:

• 30-40% reduction in Days Sales Outstanding (DSO)
• 50-70% decrease in manual collection tasks
• Improved customer satisfaction scores
• Higher collection rates without increasing team size

These improvements compound over time as the AI agents learn from each interaction, continuously refining their approach to maximize both collection efficiency and customer relationships.