Pros & Cons of Top 6 RPA Alternatives to Consider
Robotic Process Automation (RPA) is a beneficial technology that can automate up to 70-80% of rules-based processes. However, ~40% of companies fail to reach their expectations of cost reduction after RPA implementation. This is because RPA is not the right fit for every process and there are potential pitfalls of RPA implementation, such as costly maintenance.
To help leaders explore better options, we review six main RPA alternatives and explain why AI-driven automation is becoming the superior choice for long-term business benefits.
Main takeaways:
- RPA is best for stable, repetitive tasks.
- Alternatives, including AI-driven tools, specialized SaaS solutions, and modernized systems, often deliver higher ROI in complex, rapidly changing, or high-risk environments.
- The optimal approach often combines RPA with alternatives, bots handle repetitive tasks, while AI or specialized tools manage variability and intelligence-driven work.
Robotic process automation alternatives
1. IT transformation
Companies can modernize their core systems to achieve large-scale automation. This often involves replacing outdated legacy systems with new architectures.
Pros
- Reduces reliance on outdated, fragile technology.
- Allows automation to be built into the system from the ground up.
Cons
- Expensive and slow (projects often run over budget and late). A study on software projects demonstrated that large IT projects run 45 percent over budget, and 7 percent over time, while delivering 56 percent less value than predicted.1
- Complex migrations can take years to complete.
2. Business process management platforms (BPMS)
BPMS’s integrate enterprise applications and improves “straight-through processing” by reducing the need for human intervention.
Pros
- Faster to implement than a full IT transformation.
- Works well when systems can connect smoothly.
Cons
- Benefits decrease if processes involve diverse or siloed tools.
- Limited by how many applications can be integrated.
3. Business process outsourcing
Popular in the 90s, many companies in the developed world outsourced their operations to the developing world. The idea is that, instead of leveraging an RPA bot to copy-paste information from one window to another, you can outsource it so human labor can do it.
Pros
- Can be cheaper than building automation for temporary processes.
- Flexible in environments where processes change often.
Cons
Outsourcing can create silos and reduce innovation.2
Labor arbitrage is less profitable than before.
Source: Statista3
More fundamental changes are required to improve processes today.
4. Specialized Plug&Play solutions
Some processes, like invoice handling or travel and expense reporting, are common across industries. Vendors now provide ready-made tools that integrate easily with ERP systems.
Pros
- Quick to adopt, with minimal setup.
- Offers advanced features (e.g., AI-based fraud detection in expense reports).
Cons
- Off-the-shelf tools are less customizable.
- May not fully meet unique business needs.
Accounts payable for example is such a process as all companies need to process invoices, make payments and store the data in ERP systems such as SAP.
5. API-Based integration platforms (iPaaS)
IPaaS automate workflows by connecting applications through APIs.
Pros
- More reliable than bots, since they use official APIs.
- Scales easily across cloud systems.
Cons
- Less useful when dealing with legacy systems without APIs.
6. Hyperautomation (Process Mining + IDP)
Hyperautomation uses tools like process mining, task mining, and intelligent document processing (IDP) to discover and automate repetitive tasks.
Pros
- Identifies high-value automation opportunities.
- AI-powered document extraction reduces manual work.
Cons
- Can be expensive and complex to deploy.
An emerging option: AI
While these alternatives address some RPA limitations, AI goes further by adding intelligence and adaptability.
- AI is dynamic, RPA is static: AI agents learn and adapt. RPA software bots must be reprogrammed when processes change.
- AI enables decision-making: RPA executes tasks. AI analyzes data, detects patterns, and makes predictions (e.g., fraud detection).
- AI scales across processes: RPA handles single tasks. AI works across workflows, connecting data and insights.
- AI supports high-value work: RPA automates repetitive tasks. AI supports strategy, forecasting, and customer engagement.
- AI reduces long-term costs: RPA requires frequent fixes. AI improves over time, lowering maintenance needs.
The future: AI and RPA working together
RPA remains important in sectors like banking, insurance, and healthcare. These industries often depend on rule-based automation for accuracy and compliance. RPA ensures consistent, error-free execution, something AI alone doesn’t always guarantee.
The rise of agentic AI (AI + RPA)
The automation landscape is shifting. Traditional bots are now being enhanced with AI agents, systems that can perceive, reason, and act on their own. Gartner calls this Agentic Process Automation (APA). Leading RPA vendors like Automation Anywhere and UiPath are incorporating these AI agents into their platforms to deliver smarter automation at scale.4 5
This blend of RPA and AI is being tested in real-world workflows. One recent study shows how generative AI combined with intelligent document processing (IDP) drastically improved expense processing, cutting processing time by over 80%, lowering error rates, and improving compliance. The system also learned from human decisions to keep improving.
Learn RPA’s advantages compared to the alternatives
Compared to these alternatives, RPA provides a very good quick fix thanks to its 4 advantages:
- Flexibility: You can program an RPA bot to complete almost any repetitive task thanks by using customized codes.
- Ease of integration: Thanks to screen scraping, screen recording, and other existing integrations, bots can input and evaluate the output of almost all Windows applications.
- Ease of implementation: Macro recorders and drag&drop programming tools make it easy for citizen developers to program RPA solutions.
- Cost: Robots are cheaper than humans! Business process outsourcing solutions are no longer economical when those processes can be automated with more efficiency and less costs, than outsourcing.
Areas where RPA alternatives may be preferable
Visionary CxOs today still need to weigh trade-offs between RPA tools and its alternatives. Some areas where alternatives are often a better choice include:
Specialized Plug&Play solutions
- For processes common across organizations (like accounts payable or expense management), specialized tools often outperform generic RPA.
- These solutions can leverage data from multiple companies to continuously improve performance, integrate seamlessly, and require less ongoing maintenance than custom RPA bots.
- Example: AI-based T&E solutions optimize workflows across industries.
IT transformation and system modernization
- RPA operates on the surface, automating interactions with existing systems, but doesn’t improve underlying architecture.
- Legacy systems increase risk: outages, costly maintenance, and operational vulnerabilities remain.
- Modernization, combined with API-based or AI-powered automation, reduces dependency on fragile hardware/software and creates a more scalable, resilient infrastructure.
- Example: A bank upgrading its core systems while deploying RPA saw both risk reduction and improved automation efficiency.
Temporary or rapidly changing processes (BPO or Flexible Automation)
- For processes that change frequently or are short-term, fully automating with RPA may not be cost-effective.
- Maintaining bots for evolving processes can be more expensive than using a partially automated BPO team or AI-assisted solutions that adapt in real time.
- Example: Seasonal finance or audit workflows may be better served by human-AI hybrid teams rather than rigid bots.
To learn more about the processes that are unfavorable for RPA automation, click here.
Optimal choices will enable organizations to function effectively and out-compete their competitors both today and in the future. If you want to employ RPA to achieve this, you can review our data-driven lists of RPA software.
Reference Links
Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE and NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and resources that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised enterprises on their technology decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.
He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.
Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.
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