‍Manufacturer’s struggle with warranty claims

Let's imagine INJECTECH as the manufacturer of injection molding machines with worldwide clients. INJECTECH customers rely on warranties for repairs, but for INJECTECH employees verifying the warranty claims for each repair invoice is time-consuming and eventually costly.

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Picture this: A manufacturing company has been running its production line smoothly until, one day, one of its injection molding machines suddenly stops working. With production at a halt, the company calls a repair service to assess the damage. The technician diagnoses the issue, carries out the necessary repairs, and issues an invoice. The manufacturer pays the repair company, knowing that the cost might be recoverable under the machine’s warranty.

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Once the invoice is settled, the manufacturer forwards it to INJECTECH, expecting a refund or coverage under the warranty. However, INJECTECH now faces a different challenge. Their service department receives a constant stream of similar claims from customers around the world. Each claim must be individually assessed, was the repair necessary? Does it fall under warranty coverage? Were there any conditions in the contract that limit or exclude certain repairs? The complexity increases further when each customer has a different warranty agreement with varying terms and conditions.

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Processing these claims manually is both time-consuming and error prone. Each invoice must be checked against purchase orders, service histories, warranty agreements, and machine logs. Some claims are fully covered, others partially, and some may be outright invalid. Without an efficient system, INJECTECH risks financial losses by approving invalid claims or frustrating customers with unnecessary rejections. This back-and-forth process leads to delays, errors, and strained business relationships, making it clear that a better solution is needed.

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Complexity and inefficiency in warranty validation

For companies like INJECTECH, warranty claim validation is a constant headache due to:

• High claim volume – Some customers submit legitimate claims, while others file for repairs that aren’t covered, leading to a backlog.

• Diverse warranty agreements – Each client has unique warranty terms, making validation more complex.

• Slow, manual reviews – Verifying every claim by hand is inefficient and prone to errors.

• Financial risks – Approving too many claims leads to unnecessary costs, while excessive rejections harm customer relationships.

Given these challenges, manufacturers struggle to maintain efficiency, accuracy, and profitability. This is where AI-driven solutions make a huge difference.

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Automated warranty validation with Nordoon AI Agents

AI-driven automation eliminates the inefficiencies of human verification by structuring the process into a prebuilt workflow template that systematically validates each claim. Instead of undergoing slow, manual processing, employees can rely on AI Agents instructed to handle warranty validation with precision and speed.

Here’s how a Warranty Validation AI Agent operates:

1. Process data with help from LLMs – Scans the repair invoice for key details.

2. Checks internal records – Cross-references operating hours, service history, and machine details.

3. Validates against warranty terms – Confirms if the repair aligns with the specific customer’s contract.

4. Determines claim status – Decides whether the claim is valid or not and why.

5. Automates documentation updates – Pushes processed data to designated folders, such as SharePoint.

For manufacturers like INJECTECH, this means no more manual reviews. Instead, employees simply forward an email with the repair invoice to Nordoon, and within minutes, the AI agent completes the entire validation process.

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Bringing it all together with Power Automate

AI agents handle validation, but seamless integration with business systems is just as crucial. That’s where Microsoft Power Automate plays a key role. Once the AI agent completes its assessment, Power Automate triggers workflows that:

• Route approved claims for processing.

• Notify the relevant teams.

• Archive claim records in the right locations.

By pairing AI Agents and Power Automate for streamlined operations, with Power Automate, manufacturers achieve a fast, error-free, and cost-saving warranty validation process.

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Faster processing, lower costs, and better customer service

The impact of AI-driven warranty validation is game-changing:

• Processing time drops from days to minutes.

• Labor costs decrease, as manual validation is eliminated.

• Financial losses are reduced by approving only valid claims.

• Customer satisfaction improves with quicker claim resolutions.

Beyond warranty validation, AI agents boost countless other processes, from invoice and backorder management to contract reviews and audits, and so much more.

This transformation is just the beginning, as AI Agents continue to evolve, handling increasingly complex workflows with higher accuracy. Businesses that embrace AI automation will gain a competitive edge by eliminating inefficiencies and optimizing operations.