What is Robotic Process Automation? Practical Applications of RPA

In the era of digital transformation, process automation is becoming a core factor in helping businesses optimize efficiency and enhance competitiveness. One standout technology leading this trend is Robotic Process Automation (RPA). As an intelligent automation solution, RPA enables the swift execution of repetitive tasks that previously required human intervention. So, how does RPA work, and what practical applications has it brought to sectors like banking, insurance, retail, and healthcare? Let’s explore with FPT.AI!

What is RPA?

Robotic Process Automation (RPA) is an intelligent automation technology that combines APIs and user interface (UI) interaction to perform repetitive office tasks, such as data extraction, form filling, or file transfer.

This type of automation employs software bots (or artificial intelligence (AI) and rule-based software) to execute large volumes of tasks in business processes, freeing up human resources to focus on more complex tasks. RPA allows CIOs and other decision-makers to accelerate digital transformation and achieve higher returns on investment (ROI) from their workforce. However, for complex cases or errors, human intervention may still be required.

How does RPA work?

RPA operates at the interface layer of browsers, software, and other systems. Developers use programming tools to build specific workflows that bots can follow, simulating human interactions with graphical user interfaces (GUI) across different systems.

According to a report by Forrester, RPA software tools need the following core capabilities:

• Low-code capabilities for building automation scripts.
• Integration with enterprise applications.
• Coordination and governance, including configuration, monitoring, and security.

Automation technologies like RPA can also access information through legacy systems and integrate seamlessly with other applications via front-end integrations. This enables the automation platform to operate similarly to an employee, executing repetitive tasks such as logging in and copying data from one system to another.

Although back-end connections to databases and enterprise web services also support automation, the true value of RPA lies in its ability to enable fast and straightforward front-end integrations.

RPA and Intelligent Automation

To stay competitive, Robotic Process Automation (RPA) tools on the market must go beyond automating tasks and expand their functionality to include Intelligent Automation (IA). This advanced form of automation enhances RPA’s capabilities by integrating branches of Artificial Intelligence (AI), such as Machine Learning (ML), Natural Language Processing (NLP), and Computer Vision.

Intelligent Process Automation (IPA) demands more than the rule-based systems of traditional RPA. RPA can be seen as the tool that “executes” tasks, while AI and ML handle the “thinking” and “learning” components. AI trains algorithms with data, enabling software to perform tasks faster and more efficiently.

RPA and Artificial Intelligence (AI)

RPA is often confused with AI, but they are fundamentally different. AI incorporates elements like cognitive automation, machine learning (ML), natural language processing (NLP), reasoning, hypothesis generation, and analysis.

The core distinction lies in their approach:

• RPA is process-driven, while AI is data-driven.
• RPA bots can only execute processes predefined by end users.
• AI bots leverage machine learning to identify patterns in data, particularly unstructured data, and learn over time.

In essence, AI is designed to simulate human intelligence, while RPA focuses on mimicking human-directed tasks.

While both technologies reduce the need for human intervention, their approach to automating processes differs. However, RPA and AI complement each other exceptionally well. AI can help RPA automate tasks more comprehensively and handle more complex use cases. Conversely, RPA enables the rapid deployment of AI insights without requiring manual operations.

Benefits of RPA

RPA offers several key advantages:

• Low coding requirements: RPA doesn’t necessarily need developers for configuration. Drag-and-drop features in the user interface make it easy for non-technical employees to use.
• Quick cost savings: RPA reduces workloads for teams, allowing employees to focus on higher-priority tasks requiring human intervention, increasing productivity and ROI.
• Enhanced customer satisfaction: Bots and chatbots can operate 24/7, reducing customer wait times and leading to higher satisfaction levels.
• Improved employee morale: By eliminating repetitive, high-volume tasks, RPA enables employees to focus on strategic and creative decision-making. This positively impacts job satisfaction and workplace morale.
• Better accuracy and compliance: RPA robots can be programmed to follow specific processes and rules, reducing human error—especially in tasks requiring high accuracy and regulatory compliance. Additionally, RPA provides audit trails, enabling better progress tracking and faster issue resolution.
• No disruption to existing systems: RPA software does not interfere with core systems as bots operate on the presentation layer of existing applications. This allows bots to be deployed in situations where APIs are unavailable or resources for deep integrations are insufficient.

Challenges of applying RPA

Although RPA software can help businesses grow, there are some obstacles to overcome:

• Organizational culture: RPA reduces the need for certain job roles but simultaneously creates new ones to handle more complex tasks, enabling employees to focus on higher-level strategies and creative problem-solving. Organizations must foster a culture of learning and innovation as job responsibilities shift. Training and investing in upskilling programs will help teams adapt to continuous changes.
• Scaling difficulties: While RPA can perform multiple activities simultaneously, scaling across an enterprise may be challenging due to regulatory updates or internal changes. According to a report by Forrester, 52% of customers experience difficulties scaling their RPA programs. A business needs at least 100 active robots to qualify as an advanced program, but most RPA initiatives fail to exceed the first 10 bots.

Real – life applications of RPA

RPA is used across various industries to optimize business operations. Its deployment can be seen in the following sectors:

• Banking and Financial Services: According to a Forrester report, 36% of RPA use cases are in finance and accounting. Today, many major banks use RPA solutions to automate tasks such as customer research, account opening, request processing, and anti-money laundering operations. A bank can deploy thousands of bots to automate large-scale manual data entry tasks.
• Insurance: The insurance industry is filled with repetitive processes suitable for automation, such as claims processing, regulatory compliance, policy management, and underwriting tasks.
• Retail: The rise of e-commerce has made RPA an integral part of modern retail, improving back-office operations and customer experiences. Common applications include customer relationship management (CRM), inventory and order management, customer feedback processing, and fraud detection.
• Healthcare: In the healthcare sector, accuracy and compliance are paramount. Some of the world’s largest hospitals use RPA software to optimize information management, prescription handling, insurance claim processing, payment cycles, and other processes.

In conclusion, Robotic Process Automation (RPA) continues to demonstrate its critical role in optimizing business processes and enhancing operational efficiency. By automating repetitive tasks, minimizing errors, and improving productivity, RPA not only frees up resources but also creates opportunities for creativity and strategic initiatives. This is a significant step in the digital transformation journey, providing practical value to diverse industries.

FPT AI offers comprehensive solutions combining Artificial Intelligence (AI) and Robotic Process Automation (RPA) to help businesses in finance, insurance, and banking optimize operations and enhance customer experiences. With products such as FPT AI eKYC, enabling customer identity verification in just a few minutes; FPT AI Read, automating data extraction with up to 98% accuracy; and akaBot, delivering rapid deployment, 24/7 operation, and performance 10 times higher than manual efforts, FPT AI empowers businesses to reduce costs, boost efficiency, and minimize risks. This is a groundbreaking step to enable organizations to achieve rapid and effective digital transformation, gaining a competitive edge in the digital era. Contact us now for more in-depth consultation!

Reference: IBM. (n.d.). RPA – Robotic Process Automation. IBM Think. Retrieved January 18, 2025, from https://www.ibm.com/think/topics/rpa