Genpact Launches AI Tool to Manage Deductions for Consumer Goods Companies

Genpact has launched Genpact Deductions Recovery, designed to automate deduction management in accounts receivable for consumer goods companies, using AI agents to identify, validate, and resolve disputed deductions. It forms part of Genpact's wider portfolio of agentic AI solutions.

According to Genpact, consumer goods companies often miss up to 20% of preventable deductions, which the company describes as financial penalties linked to promotions, logistics, and compliance issues. Genpact also stated that more than 30% of invalid claims go unresolved, attributing this to manual processes that rely on spreadsheets, emails, and separate portals.

Anil Nanduru, Global Business Leader for Consumer and Healthcare, and High-Tech Software at Genpact, described the reasoning behind the solution. "Disconnected trade data and manual reconciliation are slowing businesses down," he said in a statement. 

He added that the company is deploying agents built to understand industry-specific issues and resolve disputes without constant manual input.

The solution runs on Microsoft Azure and uses AI agents to manage the deduction process from start to finish. It uses several Microsoft tools, including Azure AI Document Intelligence in Foundry Tools, Azure AI Search, and Azure OpenAI in Foundry Models. 

Genpact said the system pulls deduction data from customer portals, carrier systems, and internal ERPs, matches debit memos against proof-of-delivery and internal records, and carries out follow-up actions such as bill-backs for unreturned products, with limited manual intervention.

Genpact said clients using the solution could see cycle times reduced by up to 20%, additional annual recoveries of up to 15% from previously unidentified invalid deductions, and a reduction in financial leakage of around 1.5%. 

The company also said the tool can reduce recurring deductions through data-based root cause analysis and free staff from manual data entry tasks.

Dylan Jetha, Global Trade to Cash at Kraft Heinz, said, "Visibility and control are essential given the nature of deductions in a complex business environment like ours,". 

He added that Genpact's use of pre-trained agents in the deductions process was a development he was watching with interest.

Keith Mercier, Vice President of Worldwide Retail and Consumer Goods at Microsoft, said Genpact's experience in the consumer goods sector positioned it to support the industry with the new solution, combining its domain knowledge with Microsoft Azure's infrastructure.