Beneath the hype, there is no question that artificial intelligence (AI) is already making significant differences to a whole range of business processes. AI works by providing opportunities to automate key tasks and decision-making processes, reducing errors and increasing accuracy. In turn, by reducing the time taken on the newly automated processes, AI frees up management’s time to focus on more value-added activities.

As with any technology, treasurers need to feel confident that AI can deliver the results they expect. Getting the best from AI requires treasurers to understand AI’s scope and determine an AI strategy, before implementing change.

Most treasury organizations already benefit from AI to some extent, whether in their internal systems (e.g., cash application solutions) or through third-party services (e.g., bank fraud protection). However, the evolution of generative AI solutions, in particular, is creating opportunities for treasury departments to develop their own AI solutions to improve operational efficiency. At least initially, AI can deliver noticeable improvements when used to address specific pain points within an operational workflow.

While the potential benefits of AI implementation seem clear, determining how to proceed can seem daunting, especially for treasury departments with limited resources. Some may also be put off proceeding by the continued development of AI technology.

A focus on the following three areas will help any treasury organization explore the possibilities of AI and set the foundations for future success:

1. Review the data strategy. Every form of AI requires access to appropriate and necessary data. This data should be stored in a way that prevents unauthorized parties, whether internal or external, from gaining access to proprietary information, intellectual property or customer information. Addressing any deficiencies now will help make it easier to establish better AI projects in the future.
2. Focus on one or a few particular processes or actions. For each one, consider the desired output, keeping in mind that any investment in a new process or solution should provide an output that is better — i.e., more accurate, faster and/or more efficient — than the action replaced. For many treasury departments, particularly those in the early stages of AI adoption, the elimination of a critical pain point, especially one that consumes disproportionate levels of management time, will help build support for further AI adoption.
3. Think about how the department can acquire the skills necessary to run one or more AI-powered processes. Encourage team members to experiment with AI tools to try to solve problems and address the pain points they face in their normal tasks. Team members often have the best understanding of a specific issue, so getting them to use AI tools to identify a new process can be an effective way to achieve change. Developing solutions in this way will also help build team members’ confidence in the technology and raise awareness of where it could be used next.

Alongside developing the ability to create AI processes, treasury departments will have to explain the outcomes of these processes. Treasurers still need the fundamental treasury knowledge and expertise to assess the technology’s output to identify any errors. The traditional skills will also help treasurers direct the refinement and extension of AI technology use into new activities and processes, and ensure new AI processes are integrated with the overall departmental workflow.

The focus on solving particular problems can add real value to corporate treasury departments. With more time and access to deeper analysis, treasurers can then better support strategic planning and provide clearer evidence for change, making treasury more valuable to the organization as a whole.

AI cannot solve every problem, so understanding the limits of AI is a critical skill. Some pain points will likely still remain, including those activities that AI cannot deal with or that treasurers do not trust AI to manage.

Ultimately, technology is only valuable when it drives meaningful outcomes. AI is no different. Its adoption represents the next stage in the emergence of treasury as a key strategic partner to the business.

The AFP Treasury in Practice Guide: AI-Ready Treasury, underwritten by Wells Fargo, addresses these core points in more detail. The guide contains tips and advice from treasury practitioners on how to put AI into practice in ways that will add value. It includes examples of AI prompts used for tasks such as crisis and resilience planning and dashboard creation. Fill out the form below to download the complimentary guide.