Corporate treasury on the cusp of AI transformation

Treasury departments at major corporations are on the brink of a significant shift driven by artificial intelligence (AI). Currently, treasurers are recognized more for their data reconciliation skills than their advisory roles in the C-suite. However, AI adoption in treasury holds the promise of transforming this reality. More than three-quarters of treasury professionals believe AI can handle up to 25% of their tasks within the next five years, particularly in cash-flow forecasting, receivables reconciliation, and FX risk management.

These areas stand to benefit from better prediction, faster handling, and smarter detection, leading to improved liquidity and reduced risk.

Yet, despite this promising outlook, only 1 in 2 companies have deployed AI in treasury, and under 10% have integrated it into daily workflows. The primary barriers to AI implementation include system integration (70%), cost (44%), and expertise (41%). Many large corporations rely on outdated ERP and TMS software systems that are incompatible with modern AI tools, while data is often scattered across various bank portals and systems, leading to inconsistencies and incompleteness.

Additionally, there is a shortage of AI specialists within treasury teams, and governance issues further complicate the adoption process.

However, these challenges are not insurmountable. Just as APIs have paved the way for automation and real-time visibility in other industries, they can now facilitate easier connectivity between AI tools and existing systems. The pace of API adoption has been exponential, with a 34% increase in call volume in recent years. This trend underscores the potential of AI to reduce processing time, lower error rates, and enhance forecasting accuracy.

Furthermore, treasury teams are increasingly expected to take on strategic roles, despite their lean staffing and heavy workload. Manual spreadsheets remain prevalent in many treasury functions, with AI and APIs offering a solution to automate repetitive tasks and free up human resources for more high-value activities. As AI adoption in treasury moves from promise to action, treasurers can elevate their status from data handlers to strategic advisors, ultimately transforming their role in the organization.