Almost three-quarters of Chief Financial Officers (CFOs) endorse the potential of Artificial Intelligence (AI) tools in modernising treasury operations, according to a global survey conducted by DBS.

Almost three-quarters of Chief Financial Officers (CFOs) endorse the potential of Artificial Intelligence (AI) tools in modernising treasury operations, according to a global survey conducted by DBS.

In a recent survey titled "New Realities, New Possibilities," conducted by DBS Bank India, 800 finance leaders, including CFOs and corporate treasurers, across seven sectors and 14 markets, shared insights into their strategies for navigating the rapidly changing macroeconomic environment.

Key findings from the report highlight a significant trend in AI adoption among Indian finance leaders. A substantial majority, 79%, believe that AI and related technologies will play a crucial role in enhancing treasury risk mitigation and operations. This indicates a strong confidence in the potential of AI to modernize and streamline treasury functions.

The report also emphasizes the importance of sustainable finance, with 80% of India's CFOs and treasurers expressing support for sustainable trade finance solutions. These solutions are seen as vital for promoting green initiatives and ensuring compliance with environmental standards.

There is a growing emphasis on leveraging data-driven financial intelligence to improve decision-making. Tools such as data visualization and AI are being embraced to navigate economic uncertainty more effectively.

Companies are strengthening financial stability amidst higher upfront costs and potential inventory stockpiling associated with increased market volatility. To achieve this, over one-in-two companies are exploring more innovative solutions for liquidity and foreign exchange (FX) management, including integrated payments, blockchain-powered capabilities, and the setting up of regional treasury centres. However, the survey did not provide specific details about the percentage of companies considering these innovative solutions.

The report also reveals that 64% of companies are considering partnerships with ESG ecosystem networks, and 77% are considering using digital tools to enhance the rigour of ESG reporting. Yet, the survey did not provide specific details about the percentage of companies considering these options.

In addition, globally, 69% of leaders are exploring Gen AI-powered solutions to optimize inventory forecasting, overcome prolonged receivables collection periods, and improve cash conversion cycles.

Divyesh Dalal, Managing Director and Head - Global Transaction Services, SME and Financial Institutional Group, DBS Bank India, stated that the role of a trusted banking partner is even more critical as companies look for decisioning support to steer transformation and enable long-term resilience.

DBS Bank India works closely with clients, offering advisory and customized solutions backed by strong Asian connectivity and advanced digitalization. The survey showed that businesses are recalibrating their long-term strategies to strengthen financial resilience over the next five years. Companies are planning for the long-term effects of a shifting global landscape, while bracing for continued rate volatility and potential supply chain reconfigurations.

The "New Realities, New Possibilities" report aims to provide future-focused insights to increase competitiveness in a rapidly changing macroeconomic environment. The report underscores the need for businesses to embrace technology and sustainable practices to build resilience and adapt to the challenges of the future.

1. Given the findings from the "New Realities, New Possibilities" report, it's clear that a significant number of Indian finance leaders, 79%, are confident in the role of AI and related technologies in modernizing and streamlining treasury operations, specifically for treasury risk mitigation.
2. Beyond AI, the report also shows that a large proportion of Indian and global businesses, 64% and 69% respectively, are considering partnerships or investing in digital tools, such as data visualization, Gen AI-powered solutions, and ESG ecosystem networks, to enhance their financial intelligence, ESG reporting, and overall business resilience.

Read also: