The City of Winnipeg is moving forward with implementation of an artificial intelligence-powered invoice automation system, after a successful pilot project demonstrated strong results and projected savings of more than $730,000.
The initiative is one of several AI pilot projects launched in response to Mayor Scott Gillingham’s 2024 challenge to the public service to find new ways to deliver better value for residents.
“This is about making every dollar go further,” said Mayor Scott Gillingham. “By cutting down on manual processing and reducing errors, we’re saving money, speeding up payments, and freeing up staff time for more complex work.”
The new system automatically processes supplier invoices using optical character recognition (OCR), extracts key data, and presents it through a user-friendly interface for validation. In the next phase, that validated data will flow directly into the City’s financial system.
Early results show high accuracy, and if performance continues as expected, the system will be used on an ongoing basis without the need for additional investment.
The project is being delivered in three phases:
- Phase I (now complete): Automated email sorting, data extraction using OCR, and human validation through a custom interface.
- Phase II (launching June 2025): Direct integration with the City’s financial system (PeopleSoft) to streamline payment processing.
- Phase III (in development): Further automation of internal workflows, including three- and four-way invoice matching.
Based on current projections, the project is expected to generate savings exceeding $730,000 in net present value by reducing manual data entry, minimizing errors, and improving processing times.
The invoice automation initiative is part of a broader AI strategy at the City. A permanent Data, Analytics, and Artificial Intelligence Committee will be established later this year to oversee future AI efforts and build business cases for long-term investment. A proposal for capital funding to support one or two new AI projects annually will be brought forward as part of the 2026 budget process.
“This is a smart investment that pays for itself,” said Councillor Matt Allard, Council’s Technology and Innovation Liaison and a member of the new Budget Savings Group. “This is just the beginning of how we can use AI to improve service, lower costs, and build a more modern city government.”