AI in treasury: the future of data-driven decision making

AI in treasury: the future of data-driven decision making

Artificial Intelligence (AI) is redefining business operations across industries, and treasury functions are no exception. The ability to quickly interpret, organize, and act on vast amounts of data is one of the key advantages AI brings to the table. However, while AI adoption is on the rise, treasurers remain cautious about fully integrating AI tools into their workflows.

A recent poll conducted during Elire’s 2024 Elire Treasury Experience highlights this hesitancy, revealing that while many treasurers see the value of AI, adoption remains in its early stages. Understanding the challenges, opportunities, and future trajectory of AI in treasury operations can help organizations better prepare for this shift.

The current state of AI adoption in treasury

According to the survey results, most treasurers acknowledge the potential of AI, yet relatively few have implemented it in their operations. The data shows:

• 24.2% of respondents are currently using AI in some form

• 3.2% of respondents have integrated AI extensively across their treasury processes

• 19.4% have no plans to incorporate AI

• 4.8% were unaware of AI’s role in treasury

This means that only 27.4% of treasurers are currently leveraging AI, leaving significant room for growth. The hesitation surrounding AI adoption appears to stem from concerns about control, decision-making authority, and the readiness of AI infrastructure within treasury departments.

The roadblocks to AI adoption in treasury

Despite AI’s transformative potential, there are key barriers slowing its adoption in treasury functions:

1. Lack of readiness: Treasury teams may not yet have the necessary AI infrastructure, policies, or strategic frameworks in place. Without a clear roadmap for AI implementation, integrating these tools can seem overwhelming.

2. Concerns over control and decision making: Treasurers tend to be comfortable with AI for predictive and analytical tasks, but they remain hesitant about allowing AI to make decisions or take actions autonomously. For example, while AI-powered cash forecasting (31.3%) and fraud detection (27%) are seen as valuable applications, only 15.8% of treasurers are comfortable with AI making investment decisions, and just 7.7% would use AI to build new software programs.
   

This indicates that treasury professionals may fear AI will replace human expertise rather than support and enhance it.

How treasurers can begin integrating AI

To bridge the gap between interest and adoption, treasurers need to take strategic steps toward AI implementation. Here’s how treasury teams can begin their AI journey:

Focus on predictive AI first

Given that treasury professionals are more comfortable using AI for forecasting and fraud detection, organizations should start here. AI can analyze historical cash flow patterns and market trends to improve cash forecasting accuracy. Similarly, machine learning models can detect anomalies and flag suspicious transactions in real time to prevent fraud.

Build a strong AI framework

Before diving into AI adoption, companies must establish:

• AI infrastructure: Ensure treasury systems can integrate with AI-powered tools.

• Policies and compliance guidelines: Set clear guidelines for AI use, ensuring compliance with regulatory standards.

• AI strategy: Define AI’s role in treasury, outlining which functions it will enhance and where human oversight is required.

The future of AI in treasury

AI’s role in treasury is still evolving, and its capabilities will continue to expand. However, for the foreseeable future, AI will serve as an augmentation tool rather than a replacement for human expertise.
For more information and treasury learning, view Elire’s “Treasury Insights: The Treasury Themes of 2024 and Beyond” white paper and explore additional poll data from treasurers across industries. For more information on how Elire can support your treasury efforts or Kyriba implementation, reach out to [email protected] to get connected with our team.

This blog is contributed by Kyriba partner, Elire.