Artificial Intelligence (AI)-Driven Expense Report Automation Market Report 2025

The artificial intelligence (AI)-driven expense report automation market size has grown rapidly in recent years. It will grow from $2.46 billion in 2024 to $2.82 billion in 2025 at a compound annual growth rate (CAGR) of 14.4%. The growth observed during the historical period was driven by greater adoption of cloud technologies, a growing need to reduce errors in expense reporting, increasing demand for operational efficiency, rising volumes of business travel expenses, and an enhanced focus on compliance and audit readiness.

The artificial intelligence (AI)-driven expense report automation market size is expected to see rapid growth in the next few years. It will grow to $4.77 billion in 2029 at a compound annual growth rate (CAGR) of 14.1%. The projected growth during the forecast period is expected to be driven by greater integration of AI with financial software, growing awareness of the benefits of automation, wider adoption of mobile expense reporting solutions, increasing demand for faster reimbursement processes, and rising use of digital payment methods. Key trends anticipated include advancements in machine learning algorithms, development of real-time expense analytics, innovations in cloud-based automation platforms, progress in natural language processing for receipt scanning, and creation of seamless integrations with enterprise resource planning (ERP) systems.

The growing demand for cloud-based solutions is expected to drive the expansion of the artificial intelligence (AI)-driven expense report automation market. Cloud computing delivers IT resources such as storage, processing power, and applications over the internet on demand, enabling businesses to scale services without managing physical infrastructure. This approach allows companies to adjust IT resources according to their needs, minimizing costs associated with hardware. Cloud platforms provide the scalability, security, and accessibility necessary for AI-driven expense report automation, streamlining tasks such as data entry, approvals, and real-time financial reporting. According to Eurostat, in 2023, 45.2% of EU enterprises used cloud computing services, marking a 4.2 percentage point increase from 2021, highlighting the growing adoption of these solutions.

Companies in the AI-driven expense report automation sector are increasingly introducing AI-powered mobile applications to improve enterprise expense management. These applications automate expense tracking, submission, and approval processes while ensuring compliance and delivering actionable financial insights. In April 2024, Emburse, Inc., a US-based software company, launched a mobile app that leverages AI to simplify expense reporting for employees and managers. The app automatically captures receipts, fills in expense details, and handles multiple languages, currencies, and handwritten values, reducing the need for manual input. It offers a personalized dashboard for fast expense submission, supports full and partial approvals, and integrates with travel and invoice management systems.

In January 2025, Paychex Inc., a US-based human capital management company, acquired Paycor HCM, Inc. for $4.1 billion. The acquisition aims to enhance Paychex’s AI-driven HR and expense automation capabilities, strengthen its position in the upmarket segment, expand market reach, and unlock new revenue streams. Paycor HCM, Inc. provides payroll and human capital management solutions, including AI-driven expense report automation tools.

Major players in the artificial intelligence (ai)-driven expense report automation market are International Business Machines Corporation, Oracle Corporation, SAP SE, Workday Inc., Infor Inc., The Sage Group plc, Concur Technologies Inc., Bill Holdings Inc., Xero Limited, Coupa Software Inc., Basware Corporation, Emburse Inc., Tipalti Inc., Tradeshift Holdings Inc., Expensify Inc., AppZen Inc., Globality Inc., Spendesk SAS, SutiSoft Inc., Oversight Systems Inc.

North America was the largest region in the artificial intelligence (AI)-driven expense report automation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in artificial intelligence (AI)-driven expense report automation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the artificial intelligence (AI)-driven expense report automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

AI-driven expense report automation involves leveraging advanced artificial intelligence technologies, such as machine learning, natural language processing, and optical character recognition, to automatically capture, extract, and process information from employee receipts, invoices, and credit card statements. By reducing manual data entry, this approach improves accuracy, speeds up reimbursements, detects policy violations or fraudulent claims, and provides organizations with actionable insights into spending patterns, enhancing overall financial efficiency and compliance.

The primary components of AI-driven expense report automation include software and services. The software consists of digital platforms and tools that use AI to streamline expense report management tasks. These solutions can be deployed via cloud or on-premises systems and are suitable for organizations of all sizes, from small and medium enterprises to large corporations. They are applied in areas such as travel and expense management, invoice management, compliance monitoring, and fraud detection, serving diverse end users including banks, financial institutions, and insurers (BFSI), healthcare providers, IT and telecommunications companies, retail, manufacturing, and more.

The artificial intelligence (AI)-driven expense report automation market research report is one of a series of new reports that provides artificial intelligence (AI)-driven expense report automation market statistics, including artificial intelligence (AI)-driven expense report automation industry global market size, regional shares, competitors with an artificial intelligence (AI)-driven expense report automation market share, detailed artificial intelligence (AI)-driven expense report automation market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI)-driven expense report automation industry. This artificial intelligence (AI)-driven expense report automation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The artificial intelligence (AI)-driven expense report automation market consists of revenues earned by entities by providing services such as data migration, ongoing AI model training and updates, policy customization, and cross-border tax and compliance advisory services. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI)-driven expense report automation market also includes sales of mobile expense tracking apps, corporate card transaction integration tools, chatbot assistants, automated currency conversion modules, and application programming interface connectors. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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