Let’s be honest — collections aren’t exactly the most glamorous part of running a business. Nobody wakes up excited to chase overdue invoices or play phone tag with customers who swear the check is in the mail. But here’s the thing: cash flow is the lifeblood of your operation, and when you can collect smarter (not harder), it makes a world of difference.
That’s where AI-driven collections and customer communication come into play — especially if you’re running Microsoft Dynamics 365 Finance & Operations (F&O). The upper mid-market companies using F&O are already doing a lot right — tight financial controls, solid reporting, and some pretty slick automation. But when it comes to collections and customer engagement, there’s still a ton of untapped potential.
The Problem: Collections Are Still Stuck in the Past
Even in 2025, many finance teams still handle collections like it’s 2005: spreadsheets everywhere, generic reminder emails, “Just checking in” messages that vanish into the void, not to mention customers getting multiple nudges from different reps (or worse — none at all).
That approach doesn’t just waste time — it risks relationships. Nobody wants their best customer to feel like a number on a list.
Enter AI: The New Teammate You Didn’t Know You Needed
AI doesn’t replace your collections team — it supercharges them. Imagine your F&O system could:
- Predict who’s likely to pay late before it even happens.
- Automate personalized reminders that sound human (not robotic).
- Analyze communication patterns to figure out which tone, timing, and channel actually gets results.
- Surface insights about which customers need a gentle nudge versus a firm reminder.
That’s not the future — that’s happening right now. With the right AI layer on top of Microsoft F&O, your collections team becomes a data-driven machine.
Why Mid-Market Companies Should Care
You don’t have the army of AR analysts that enterprise giants do. But your volume of customers and invoices is high enough that manual follow-up just doesn’t scale.
AI levels the playing field by doing the heavy lifting for you:
- Automated prioritization: Know which accounts to chase first.
- Smart communication: Send messages that actually get opened.
- Faster cash flow: Fewer days sales outstanding (DSO) means more cash in your pocket.
And because it plugs right into F&O, your team doesn’t have to jump between systems — the intelligence lives right where your data already does.
It’s Not Just About Getting Paid — It’s About Building Better Relationships
Collections doesn’t have to be adversarial. The beauty of AI-driven communication is that it helps you stay human while being efficient. Instead of coming across harsh with phrases like “pay up now,” your messages can sound like, “Hey, just a heads-up — looks like this invoice might’ve slipped through. Need me to resend it?”
That kind of tone builds trust. Customers feel seen, not chased.
The Bottom Line
AI-driven collections and communication are about making your team more human, not less. You free up time, reduce stress, and collect faster — all while keeping your customers happy.
So if you’re already using Microsoft F&O and you’re ready to move from “reactive chasing” to “predictive engagement,” it might be time to give AI a seat at your AR table.
Because the best collection call? The one you never have to make.