From autocorrect on a smartphone to predictive search engine suggestions, Artificial Intelligence (AI) has made its way into everyday life. CFOs, treasurers, and cash managers are enquiring about the applicability of AI in finance, such as how it might enhance functional operations and how to leverage it for meeting future business goals.
Artificial intelligence is reshaping treasury in three ways:
Treasurers must first identify treasury tools for time-consuming processes, examine inefficiencies, and calculate direct and indirect expenses to determine where AI will assist treasury workflows the most. Then treasury managers may determine where AI technology can improve or reallocate certain jobs, allowing them to optimize operations.
The main areas of application of Artificial Intelligence in treasury are:
AI must be considered as a technology for maximizing human potential and accelerating organizational success, rather than a danger. By utilizing AI to its full potential in treasury solution, businesses gain a competitive advantage by lowering operational costs, increasing productivity, and investing in growth/expansion.
Because AI aids working capital management, funding, cash forecasting, cash management, foreign currency, risk management, and other functions, its future trajectory is projected to grow.
Additional benefits that treasurers observe using emerging technologies such as AI in treasury management are:
Treasury Management Systems (TMS) comes with certain drawbacks, despite its growing user base. TMS, for example, is unable to collect data from a wide range of systems to increase forecast accuracy. Furthermore, an on-premise TMS requires ongoing corporate upgrades, lacks flexibility and scalability, and takes longer to implement.
AI-powered cloud-based solutions, on the other hand, interface effortlessly with a variety of data sources, including TMS, and save time and money. It also ensures that data is accessible and user-based across many areas, with seamless collaboration. AI helps with the automatic updates and regular data backing of TMS. The most significant benefit of AI in treasury management is that it helps avoid data theft and is an easier and more cost-effective alternative to any in-house treasury software.
AI treasury solution helps treasury reach its goals by:
Cloud-based AI-powered solutions help manage cash flows effectively with automated and faster data aggregation through seamless integration, continuous data access, reconciliations, signatory management, accurate scenario analysis, and cash flow forecasting. Schedule a demo to learn how to make the best use of AI in treasury management.
The HighRadius™ Treasury Management Applications consist of AI-powered Cash Forecasting Cloud and Cash Management Cloud designed to support treasury teams from companies of all sizes and industries. Delivered as SaaS, our solutions seamlessly integrate with multiple systems including ERPs, TMS, accounting systems, and banks using sFTP or API. They help treasuries around the world achieve end-to-end automation in their forecasting and cash management processes to deliver accurate and insightful results with lesser manual effort.