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Transforming Treasury Through the Use of Artificial Intelligence

What you’ll learn


  • How Artificial Intelligence is reshaping treasury.
  • Discover how AI helps treasury to be more productive.

Treasury is being transformed by Artificial Intelligence

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:

  • Transactional efficiency: Employees used to spend a substantial amount of time manually conducting predictable and/or routine operations, managing exceptions, and disputes, and identifying risk in Payables, Receivables, and Reporting. Artificial Intelligence (AI) can improve the effectiveness of various jobs while also reducing time demands, resulting in increased efficiency.
  • Data-based decisions: In business, massive data banks exist, however, most firms still don’t understand how to leverage that data to achieve business results. Predictive Analytics combines AI subfields such as pattern recognition, data mining, and advanced statistical modeling to help treasurers make better decisions and predictions.
  • Reliable controls: It can be difficult and time-consuming to manage risk and apply controls. Advanced process automation (APA), for example, is an example of Artificial Intelligence technology that can be integrated into current operations. With APA, a computer “learns” a task by capturing the steps taken by an employee, and then does the task. Treasurers can reduce exposure and improve asset protection by automating, multiplying, and expediting controls tasks.

Use-Cases of AI in treasury

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:

  • Automation of tasks
  • Cash forecasting
  • Proactive decision making
  • Fraud detection
  • Asset management
  • Cash management
  • Expense reporting

Is the implementation of AI in treasury management a threat to treasurers?

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.

Benefits to using AI in treasury solution

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:

  • Improved cash management: Being able to track the cash conversion cycle more quickly allows for improved cash flow management.
  • Reduced idle cash: CFOs can direct idle funds toward both short- and long-term objectives.
  • Increased strategic investments and borrowing: Accurate and suitable decisions on borrowing, business expansions, and acquisitions are made.

Why go for AI in treasury management?

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:

  • Processing large amounts of data, producing accurate forecasts, and identifying patterns or anomalies in transactions and consumer behavior.
  • Capturing customer data to better understand payment habits and reliable due date monitoring.
  • Prioritizing recent trends above the old ones for accurate cash forecasting helps explain changes in stock prices, bank deposits, and withdrawals.
  • Detecting deviation between forecasts and actuals and monitoring various scenarios
  • Viewing cash positions across various banks, entities, regions, currencies, and categories.
  • Reconciling prior-day bank transactions accurately.
  • Managing in-house banking, sweeps, intercompany transfers, and loans and investments.
  • Managing FX and counterparty risks with continuous data access.

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.

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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.