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What AI Can’t Catch: The Case for Expert-Led Deduction Recovery



Let’s get this out of the way: We love automation.


AI is transforming the finance stack, no doubt. It can flag duplicates, match invoices, and predict deduction trends faster than any spreadsheet jockey. But when it comes to retail deduction recovery?


AI isn’t enough.


Here’s Why:

Most deduction disputes aren’t cut-and-dried. They live in the gray area—where human judgment, pattern recognition, and context matter.

  • A machine can detect a date mismatch.

  • But can it interpret a retailer’s shifting compliance policy and cross-check that with ASN notes and shipment logs?

  • Can it ask why a claim keeps recurring from one DC and not another?


Not yet.


The Illusion of Accuracy

Here’s a fictional example. A growing snack brand adopts a deductions module in their ERP. AI flags standard errors—late POs, invalid shortage claims—but misses a recurring chargeback on packaging compliance. Why? Because the AI had no way to cross-check against retailer guidelines that were updated mid-quarter.


They wrote off $92,000 in errors that could’ve been reversed.


That’s the danger of treating software as a solution instead of a tool.


The Magic Combo: Humans + Machines

Think of AI like a smoke detector. It senses that something’s off. But when the alarm sounds, you still want a human firefighter to show up.


That’s what expert-led deduction recovery brings:

  • Deep knowledge of each retailer’s deduction playbook

  • Strategic prioritization of recoverable claims

  • Ability to connect dots across departments (finance, logistics, sales)

  • Nuanced communication to dispute and resolve claims with buyers


And here’s the kicker: through our partnership with HRG, we’ve recovered over $1 billion in lost revenue for suppliers—not with AI alone, but with analysts, auditors, and seasoned pros leading the charge.


Take Action:

Software flags the issue. Experts recover the money. Let the Woodridge team show you what AI alone can’t fix—and what you’re still owed. Let's talk.




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