AI in Treasury Reaffirms Corporates Only as Good as Their Data
(8 September 2023 – Australia) Artificial Intelligence (AI) is rapidly transforming multiple treasury functions from cash flow forecasting to fraud detection and risk management, but can it support functional operations?
Peter Shadbolt reports for CT that not since the advent of the Treasury Management System has technology held out so much promise for corporate treasurers. As AI has matured, treasurers are applying Machine Learning models to everything from customer behaviour to cash flow forecasting.
AI enables faster and more accurate decision making however CFOs ultimately will only ever be as good as their data. Incorporating a “human touch” by drilling down on core processes, analysing inefficiencies and accurately identifying costs will be crucial.
As APRA and ASIC prepare to release corporate plans outlining their guidance on how Australian enterprises should appropriately use AI, global tech giants such as Google, Amazon and Apple have called on the Australian government to extrapolate existing laws before drafting new regulations to govern the use and development of AI.
“Like any superhero, AI relies on good data to work its magic. However, data quality and availability can present challenges in implementing AI in corporate treasury. Ensuring that the data is accurate, complete, and properly structured is crucial for AI algorithms to generate reliable insights. It's like making sure you have the right ingredients for a delicious recipe” commented Protiviti Australia Head of Digital and Data Consulting, Rupesh Mahto.
“As AI becomes a more prominent player in treasury operations, the skillsets and roles of treasury professionals will evolve. Adaptability and a willingness to embrace AI technology will be crucial for staying ahead of the curve. Integrating AI with existing legacy systems and IT infrastructure can be a bit like trying to fit a square peg into a round hole. It requires careful planning and collaboration between treasury teams and IT departments. Overcoming compatibility issues and ensuring a seamless integration is essential for maximizing the benefits of AI in treasury operations” Mahto added.
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