Generative Artificial Intelligence in Treasury Management: Transforming Cash Flow and Risk Management

Generative Artificial Intelligence in Treasury Management: Transforming Cash Flow and Risk Management

This IDC Market Perspective discusses the tremendous potential generative artificial intelligence (AI) holds for tremendous promise for transforming treasury management by revolutionizing cash flow forecasting, enhancing risk management, and optimizing financial operations. Through its ability to generate realistic scenarios, automate routine tasks, and provide actionable insights, generative AI empowers treasury professionals to make informed decisions, improve operational efficiency, and drive strategic value. However, as organizations adopt generative AI, they must address concerns surrounding data quality and privacy, security, regulatory compliance, and integration capabilities to ensure responsible and trustworthy implementation. With careful integration and proper governance, generative AI has the potential to reshape treasury management, unlocking new levels of efficiency, innovation, and competitive advantage in the dynamic world of finance."Although some decision makers express reluctance to engage with this new technology, generative AI, if leveraged properly, has the capacity to revolutionize the treasury department, providing a more complex and nuanced approach to cash management, risk management, and other treasury management processes than ever before," says Jordan Steele, research manager of worldwide financial applications support, IDC.

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