What is Robotic Process Automation (RPA)?

Robotic Process Automation (RPA) is a technology that uses software robots, or “bots,” to automate repetitive tasks traditionally performed by humans. RPA helps organizations save money and reduce the risk of human error by automating these tasks, allowing employees to focus on more complex and higher-value work.

RPA vs AI: What's the difference?

RPA and Artificial Intelligence (AI) are often discussed together, but they serve different purposes. RPA automates rule-based tasks that follow a clear set of instructions. Its goal is to mimic repetitive actions, like clicking buttons or filling out forms, across various systems.

AI, on the other hand, simulates human cognition to analyze data, make decisions and learn from context. AI technology includes machine learning and natural language processing, which organizations use to process raw data, recognize patterns and perform tasks that require reasoning.

While RPA operates based on strict rules, AI can adapt to learned behavior. When used together, they become even more powerful. For example, AI can interpret customer emails, and RPA can trigger the appropriate response based on that analysis. This combination of RPA and AI enables businesses to automate more complex workflows that involve both structured and unstructured data.

How robotic process automation works

RPA bots are configured to mimic the actions a human would take when interacting with digital systems. The automation process begins by identifying a repetitive, time-consuming task, such as entering customer data or updating records. Once the task is mapped, a developer creates a workflow that instructs the bot on the steps to follow.

The RPA bot then interacts with existing applications, such as CRMs and ERPs, by clicking, typing and copying data without altering the underlying software code. Unlike traditional automation, RPA doesn't require complex system integration because it operates at the user interface level.

Since bots don't experience fatigue or make human errors, RPA performs tasks consistently and accurately, reducing the risks associated with manual work.

Types of robotic process automation

There are three main types of RPA: attended, unattended and hybrid. Each type is designed to automate tasks in different ways, depending on the level of human interaction required.

Attended RPA

Attended RPA bots run on a user's device and are triggered by human actions when needed. These bots are helpful in front-office environments, like customer service and sales, where an agent might need help retrieving customer information or completing a task during a live interaction. Attended RPA bots enhance human productivity by providing real-time support and simplifying routine tasks.

Unattended RPA

Unattended RPA bots operate in the background without human intervention. They are triggered automatically based on schedules or predefined rules. Unattended RPA bots are ideal for back-office processes like invoice processing or data migration. Because they function independently, unattended RPA bots can run 24/7, helping businesses scale automation and reduce manual effort.

Hybrid RPA

Hybrid RPA combines attended and unattended models, enabling seamless collaboration between humans and bots. This hybrid model is especially valuable for complex workflows that span across front-office and back-office operations. For example, an attended bot may gather information with a customer service agent, while an unattended bot continues the process by handling backend updates. Hybrid RPA is scalable and flexible for organizations looking to fully integrate automation across their operations.

Benefits of robotic process automation

RPA offers a variety of benefits, including increased operational efficiency, reduced costs, improved accuracy by minimizing human error and simplified compliance through rule-based processes.

Increases efficiency

RPA significantly boosts operational efficiency by automating repetitive, time-consuming tasks that would otherwise require manual effort. Bots can work without breaks, delays or distractions, allowing them to complete tasks much faster than humans and handle large volumes of work in less time. RPA not only speeds up routine processes but also allows organizations to scale their operations without increasing their workforce.

Reduces costs

By automating routine tasks, organizations can reduce the need for manual labor, minimize overtime expenses and lower the risk of costly human errors. RPA bots can perform the work of multiple employees at a fraction of the cost, without the ongoing expenses of hiring and training additional staff. Over time, RPA leads to substantial cost savings while maintaining service quality and process speed.

Improves accuracy

RPA enhances accuracy by eliminating human error in rule-based tasks. Unlike people, bots don't get distracted or make mistakes due to oversight. Once configured correctly, RPA bots follow the same steps every time, ensuring data is entered properly, calculations are accurate and processes are completed as intended. This leads to better data integrity and greater reliability in business operations, especially in areas where accuracy is essential.

Simplifies compliance

Since RPA bots follow predefined rules, they help ensure that tasks are performed in accordance with regulatory standards. This reduces the risk of human error and non-compliance that can result from mistakes in manual work. RPA also improves auditability because every action a bot takes can be logged automatically, creating a detailed audit trail of activity. This transparency makes it easier for organizations to conduct audits, respond to inquiries and demonstrate compliance.

RPA security risks

While RPA offers significant advantages, it also introduces security risks that organizations must manage carefully. RPA bots often require privileged access to log in to critical systems or to complete tasks. These credentials are often stored in scripts, configuration files or databases and are sometimes shared across multiple bots and processes.

If these credentials are not rotated regularly or securely managed, they can become a weak point for cyber attacks. Improper credential storage increases the risk of lateral movement within networks, allowing attackers to access sensitive data. As organizations scale up RPA deployments, the potential impact of compromised bots grows, making secure credential management and governance essential.

Common use cases for robotic process automation

RPA is used across multiple industries, with common use cases in financial services, healthcare, human resources and manufacturing to help streamline repetitive tasks and improve overall productivity.

Financial services

RPA helps organizations in the financial industry improve their efficiency, accuracy and compliance in several ways. RPA bots automate the collection and processing of invoices, limiting human error when manually entering data. By entering data into accounting systems automatically, RPA helps finance teams save time and avoid simple mistakes. Since the financial industry faces strict compliance regulations that require meticulous monitoring and reporting, RPA can automatically collect data from multiple systems, generate compliance reports and flag potential security issues.

In addition, RPA speeds up loan processing from application to approval by handling routine tasks, including verifying customers' personal information, checking credit scores and updating customer records. With RPA, financial institutions can enable faster loan approvals, improve customer satisfaction and increase accuracy, allowing staff to focus on more complex tasks.

Healthcare

In the healthcare industry, RPA reduces administrative burdens, enhances patient care and strengthens efficiency. RPA bots can manage patient data by automatically collecting, organizing and updating records across multiple systems, ensuring healthcare providers have access to accurate, up-to-date information without manual input.

RPA is also used in insurance claims processing, with bots extracting data from claim forms, verifying coverage details and submitting claims to insurers — significantly reducing processing times. Additionally, RPA bots can automate appointment scheduling by matching patient availability with provider calendars. They can also send appointment reminders, manage cancellations and reschedule appointments. Having these workflows automated not only improves operational efficiency but also contributes to a better patient experience.

Human resources

In human resources, RPA is transforming how HR personnel handle repetitive tasks. During employee onboarding, RPA bots create offer letters, automate the creation of employee profiles, set up system access and store all necessary information. RPA also plays a crucial role in payroll automation, pulling data from multiple systems, calculating pay, applying appropriate deductions and processing payments with minimal human intervention or error.

Additionally, RPA can streamline leave management by tracking leave balances, approving requests for time off and updating records across HR systems. By automating these core tasks, HR staff can focus more on employee engagement while improving efficiency and compliance in repetitive but necessary processes.

Manufacturing

RPA helps organizations within the manufacturing industry reduce downtime and improve decision-making, especially in supply chain management. RPA bots can automate tasks like order processing, inventory tracking and communication between vendors and manufacturers. This allows manufacturers to respond more quickly to demand changes and avoid stock shortages or overstocking. Manufacturing businesses can also use RPA for quality control by collecting and analyzing data from different systems to detect inconsistencies early on, ensuring products meet standards without manual data handling.

RPA supports maintenance scheduling by monitoring equipment use and performance data, triggering inspections or work orders based on specific thresholds. RPA helps reduce unexpected breakdowns and extends equipment life, enabling manufacturers to streamline complex processes and maintain high standards of efficiency and product quality.