{"id":24595,"date":"2026-07-09T08:45:00","date_gmt":"2026-07-09T15:45:00","guid":{"rendered":"https:\/\/www.microsoft.com\/insidetrack\/blog\/?p=24595"},"modified":"2026-08-05T15:25:43","modified_gmt":"2026-08-05T22:25:43","slug":"simplifying-expense-approvals-at-microsoft-with-ai-powered-risk-assessment","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/insidetrack\/blog\/simplifying-expense-approvals-at-microsoft-with-ai-powered-risk-assessment\/","title":{"rendered":"Simplifying expense approvals at Microsoft with AI-powered risk assessment"},"content":{"rendered":"\n
Every manager has experienced it: The dread of approving a stack of expense reports while critical work stands idle. This tedious process has even garnered its own internal descriptor: \u201cApproval fatigue.\u201d<\/p>\n\n\n\n
Here at Microsoft, we\u2019re no different.<\/p>\n\n\n\n
Complaints about the time and effort required to approve expense reports have been consistent from managers across our organization.<\/p>\n\n\n\n
\u201cWe continuously heard feedback from our leaders that they were spending too much time approving expense reports,\u201d says Michael He, a senior business program manager in the Greater China Region. \u201cThey didn\u2019t know where the potential risk actually was, so they had to review everything in detail.\u201d<\/p>\n\n\n\n
At Microsoft Digital, the company\u2019s IT organization, we\u2019ve taken this challenge on by introducing an AI-powered Intelligent Risk Engine.<\/p>\n\n\n\n \u201cThe Intelligent Risk Engine cuts through complexity, pointing approvers straight to the expenses that warrant attention. This clears up the noise that has been driving review fatigue, especially at quarter\u2019s end.\u201d<\/p>\nSangay Wangmo, Microsoft Digital experience director, Middle East and Africa<\/cite><\/blockquote>\n\n\n\n With this new tool, we shifted approvals from uniform, manual scrutiny to automated, risk-based decision making. This enables faster reviews, reduced cognitive load, and improved compliance outcomes.<\/p>\n\n\n\n \u201cThe Intelligent Risk Engine cuts through complexity, pointing approvers straight to the expenses that warrant attention,\u201d says Sangay Wangmo, a Microsoft Digital experience director for our Middle East and Africa region. \u201cThis clears up the noise that has been driving review fatigue, especially at quarter\u2019s end.\u201d<\/p>\n\n\n\n Looking ahead, we plan to expand the tool to include automated approvals for low-risk cases, creating a more scalable, intelligent, and efficient process. This will ease the pain for our managers and allow them to focus on their strategic work.<\/p>\n\n\n\n Across our global enterprise, we handle nearly a million expense reports annually. In regions such as Central and Eastern Europe, the Middle East, and Africa (CEMA), our expense approval processes are shaped by diverse regulatory requirements in many different countries.<\/p>\n\n\n\n \u201cAs organizations scale, managers naturally have more direct reports, which means more approvals to process. At the same time, accountability for all compliance still sits with the manager, which adds pressure.\u201d<\/p>\nKethan Parbhoo, general manager, Central and Eastern Europe, Middle East, and Africa<\/cite><\/blockquote>\n\n\n\n To take one example, the Middle East and Africa\u2014featuring multiple subregions, languages, and local policy nuances\u2014presents a complex challenge for expense management. Applying a consistent risk lens to every case is difficult.<\/p>\n\n\n\n To ensure they stay compliant, leaders often review expense reports in detail, including verifying receipt accuracy, matching invoice data, and checking supporting information (like attendee lists). This level of review requires substantial time and attention, particularly for managers with large teams who receive a high volume of submissions. This becomes even more time-consuming as groups grow.<\/p>\n\n\n\n \u201cAs their organizations scale, managers naturally have more direct reports, which means more approvals to process,\u201d says Kethan Parbhoo, a general manager in the Central and Eastern Europe, Middle East, and Africa region. \u201cAt the same time, accountability for all compliance still sits with the manager, which adds pressure.\u201d <\/p>\n\n\n\n The current tool, MS Expense, which was useful in a pre-AI environment, doesn\u2019t provide an optimal user experience. The process was repetitive and depended heavily on manual validation. Existing tools provide limited support for prioritizing risk or simplifying these tasks, resulting in a similar effort being applied to both low- and high-risk expenses. <\/p>\n\n\n\n As a result, leaders experience increased workload, slower approval timelines, and continued exposure to potential compliance gaps, despite careful review. <\/p>\n\n\n\n The four top-level internal pain points of the old approval process can be summarized as: <\/p>\n\n\n\n The Intelligent Risk Engine is helping us address all of these in a unified, cohesive way.<\/p>\n\n\n\n \u201cThe system leverages a combination of AI-based risk checks and policy-driven risk checks. This produces a quantifiable baseline score that allows for easier comparison and risk assessment.\u201d<\/p>\nEric Carnrite, principal product manager, Travel and Expense<\/cite><\/blockquote>\n\n\n\n The Intelligent Risk Engine that our team developed integrates with the existing MS Approvals system, shifting from volume-based checks to risk-based decisioning. We embed this analysis directly into the workflow.<\/p>\n\n\n\n The risk engine evaluates each expense report against multiple criteria, including receipt matching (which leverages AI and optical character recognition), spending patterns, and policy alignment. It assigns a risk score (1-100) and a risk level\u20141 at the low end and 5 at the high end\u2014and then highlights specific areas that might require attention. <\/p>\n\n\n\n \u201cThe system leverages a combination of AI-based risk checks and policy-driven risk checks,\u201d says Eric Carnrite, a principal product manager for the Travel and Expense team. \u201cThis produces a quantifiable baseline score that allows for easier comparison and risk assessment.\u201d<\/p>\n\n\n\n Risk score<\/strong><\/p>\n<\/div>\n\n\n\n Risk level<\/strong><\/p>\n<\/div>\n\n\n\n What this means<\/strong><\/p>\n<\/div>\n\n\n\n What to know<\/strong><\/p>\n<\/div>\n\n\n\n Expected action<\/strong><\/p>\n<\/div>\n<\/div>\n\n\n\n 0\u201325<\/p>\n<\/div>\n\n\n\n Negligible<\/p>\n<\/div>\n\n\n\n 25\u201350<\/p>\n<\/div>\n\n\n\n Low<\/p>\n<\/div>\n\n\n\n 50\u201375<\/p>\n<\/div>\n\n\n\n Medium<\/p>\n<\/div>\n\n\n\n 75\u201390<\/p>\n<\/div>\n\n\n\n High<\/p>\n<\/div>\n\n\n\n 90\u2013100<\/p>\n<\/div>\n\n\n\n Critical<\/p>\n<\/div>\n\n\n\n The tool also explains why something has been flagged. This allows approvers to quickly understand where to focus their review and to catch issues early, rather than after the fact. <\/p>\n\n\n\n \u201cAI is effectively doing the initial assessment that a human would otherwise have to do,\u201d Parbhoo says. \u201cIt gives you a strong signal, so you can decide quickly where deeper review is needed.\u201d <\/p>\n\n\n\n With our new model, low-risk expenses can be reviewed and approved with minimal effort, while higher-risk items receive closer examination. It just makes sense to prioritize our work this way.<\/p>\n\n\n\n \u201cPreviously, a $10 coffee receipt required the same level of scrutiny as a $300 invoice, which doesn\u2019t make sense at scale,\u201d Wangmo says. \u201cLeaders are forced to treat everything the same, even when the risk level is clearly different.\u201d<\/p>\n\n\n\n Early returns indicate significant improvements. These include:<\/p>\n\n\n\n \u201cIt pulls the three parts together: Employees, approvers, and auditing and compliance. It will ultimately make it more proactive for all parties involved, rather than reactive\u2014making sure the whole flow of the expense process is more meaningful.”<\/p>\nMichael He, senior business program manager, Greater China Region<\/cite><\/blockquote>\n\n\n\n This kind of AI-powered technology will eventually allow us to pull everything together in one unified system, meeting the needs of all the major players in the expense management process.<\/p>\n\n\n\n \u201cIt pulls the three parts together: employees, approvers, and auditing and compliance,” He says. \u201cThis will ultimately make it more proactive for all parties involved, rather than reactive\u2014making sure the whole flow of the expense process is more meaningful.”<\/p>\n\n\n\n And we\u2019re not done innovating. The current risk engine implementation establishes a foundation for further automation, and that\u2019s where we\u2019re headed.<\/p>\n\n\n\n One planned enhancement is the automatic approval of low-risk expenses, subject to compliance approval. This could produce significant savings and greater efficiency across our organization.<\/p>\n\n\n\n \u201cWith auto-approvals, we\u2019re not talking about a nominal amount,\u201d Carnrite says. \u201cAt this point, we\u2019re targeting up to 75 percent of expense reports being automatically reviewed and approved. This could save us around 150,000 to 200,000 person-hours a year\u2014and that\u2019s at the manager and director level.\u201d<\/p>\n\n\n\n We\u2019ve also added advanced optical character recognition (OCR) technology into our expense tools. This now allows for automatic categorization of expenses, so employees don\u2019t have to enter the category manually for each item.<\/p>\n\n\n\n \u201cThe end goal is an AI agent that can proactively create an expense report for you and ask you to review it. You would just validate it and move it forward, instead of building it from scratch.\u201d<\/p>\nSalvador Segura, director of business programs, Field Capability Services<\/cite><\/blockquote>\n\n\n\n Additional future improvements could include expanded use of AI for data validation, receipt processing, and identification of inconsistencies across submissions. Over time, the goal is to support a standardized approval framework that adapts to regional differences while maintaining consistent risk evaluation and reducing manual workload.<\/p>\n\n\n\n At the next level, we\u2019re hoping to use AI to eventually fully automate the creation of expense reports as well. This would be essentially the Holy Grail for this function.<\/p>\n\n\n\n \u201cThe end goal is an AI agent that can proactively create an expense report for you and ask you to review it,\u201d says Salvador Segura, a director of business programs in Field Capability Services. \u201cYou would just validate it and move it forward, instead of building it from scratch.\u201d <\/p>\n\n\n\n It\u2019s this kind of AI-powered work environment that we\u2019re pushing for at Microsoft Digital as we play a leading role in our company\u2019s ongoing Frontier Firm journey.<\/p>\n\n\n\n If you\u2019re still struggling with manual expense approvals at your organization, here are some things to consider about our Intelligent Risk Engine solution:<\/p>\n\n\n\n Every manager has experienced it: The dread of approving a stack of expense reports while critical work stands idle. This tedious process has even garnered its own internal descriptor: \u201cApproval fatigue.\u201d Here at Microsoft, we\u2019re no different. Complaints about the time and effort required to approve expense reports have been consistent from managers across our […]<\/p>\n","protected":false},"author":233,"featured_media":24596,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_hide_featured_on_single":false,"_show_featured_caption_on_single":true,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[199,924,930,822,904,597,237],"coauthors":[917],"class_list":["post-24595","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-microsoft-digital","tag-ai","tag-automation","tag-business-applications","tag-corporate-functions","tag-customer-zero","tag-employee-experience","tag-governance","m-blog-post"],"yoast_head":"\n
<\/figure>\n\n\n\n\n
Manual approvals in a complex compliance environment<\/h2>\n\n\n\n
<\/figure>\n\n\n\n\n
\n
<\/figure>\n\n\n\n\n
AI-assisted risk scoring embedded in MS Approvals <\/h2>\n\n\n\n
Expense risk score table<\/strong><\/h2>\n\n\n\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
<\/figure>\n\n\n\n\n
Future direction: Expanded automation and standardization <\/h2>\n\n\n\n
<\/figure>\n\n\n\n\n
Key takeaways<\/h3>\n\n\n\n
\n
Try it out<\/h3>\n\n\n\n
\n
Related links<\/h3>\n\n\n\n
\n