How AI and automation can unlock visibility in uncertain economic times
In a rapidly evolving economic landscape, finance leaders are under increasing pressure to make informed, strategic decisions quickly.
Amid growing uncertainty, the role of automation and artificial intelligence (AI) in enhancing financial visibility and decision-making has never been more crucial. Pleo has released new data emphasizing how AI and automation are transforming the way finance teams operate, particularly in the context of treasury management.
The report, “Buried Treasury: Uncovering the Secret to Financial Stability,” draws insights from 3,250 financial decision-makers across seven European countries, including the UK, France, Spain, and Germany.
The report reveals that companies leveraging AI in their treasury functions are far better equipped to navigate the complexities of the modern financial landscape.
According to the findings, businesses that utilize AI extensively report a 30% improvement in visibility into cash flow and finances compared to those with minimal AI usage.
The demand for agile decision-making is increasing as companies face macroeconomic challenges. AI and automation have emerged as key enablers in responding to this demand, offering finance teams the tools needed to streamline operations and reduce administrative burdens.
Despite the clear benefits, Pleo’s research shows that 51% of finance teams still struggle to focus on mission-critical work due to time-consuming manual tasks.
This is particularly concerning, as many finance leaders acknowledge the growing complexity of their organizations’ financial needs.
Marianne Lake, the CEO of JPMorgan’s consumer and community banking division, has long stressed the importance of effective financial management in an uncertain market.
“When utilized properly, treasury management accelerates growth, mitigates risks, and unlocks opportunities,” Lake said at the latest JPMorgan investor day, echoing sentiments that resonate throughout the finance sector.
As businesses grow and their financial systems become more intricate, the role of treasury management becomes increasingly significant. In fact, three in four respondents reported that the importance of their treasury function had risen as their organizations expanded.
However, the report also revealed a pressing issue: many organizations continue to operate with outdated systems that hinder their ability to manage their finances efficiently.
The findings suggest that businesses using AI extensively rate their treasury functions as “very effective” at a rate of 57%, compared to just 20% for those using AI only occasionally.
These results underline the importance of integrating AI and automation into treasury functions, particularly as financial decision-making becomes faster and more complex.
Amit Kahana, Head of Credit, Treasury, and Cash Management at Pleo, underscores the urgency of adopting these technologies.
“The current turbulent economic climate means that finance leaders must have even greater visibility over the treasury function. Deploying the right technology and automation will help businesses become agile, which is imperative given that 75% of companies also say that financial decisions must be made faster than ever before,” Kahana explained.
In response to this growing demand, Pleo has launched its new “Transfer Rules” feature in collaboration with Yapily, an open banking API provider. This innovative feature is designed to automate cash movement between connected bank accounts, Pleo accounts, and sub-accounts.
With Transfer Rules, businesses can set up automated transfers based on predefined thresholds or frequencies, ensuring they always have enough funds in their accounts to meet operational needs.
This feature empowers finance teams to automate routine tasks, freeing up time for higher-value activities while maintaining a seamless cash flow.
Pleo’s Transfer Rules are poised to significantly impact businesses’ ability to manage their finances more effectively, even as they scale and navigate an increasingly volatile economic environment.
As organizations continue to embrace digital transformation, the integration of AI and automation into finance and treasury functions is no longer optional—it is essential.
The ability to automate routine tasks and gain real-time visibility into financial operations can provide a crucial competitive advantage in today’s fast-paced business environment.
The report highlights a critical point: businesses that invest in AI and automation are better positioned to not only manage their finances more effectively but also gain the agility needed to respond to shifting economic conditions.
With the right tools in place, finance teams can move from managing financial stability to driving strategic growth—setting the stage for success in an uncertain world.