A recent survey reveals that about 79% of Indian CFOs and treasurers are considering to incorporate Generative AI and AI-powered tools in their organisations to mitigate risks and improve financial operations, within next five years.

The third edition of the New Realities, New Possibilities report by DBS Bank with EY, shows that data-driven decision-making has become a priority for these professionals.

This is because most recognise the need to eliminate subjectivity from high-impact financial decisions to bring objectivity that aligns with the organisation’s broader goals, the report states. This is also set to facilitate professionals in effective forecasting and to improve their capital strategies in an uncertain environment.

“A discernible shift is underway for treasury and finance leaders… These leaders are assuming enhanced responsibilities as they step up to guide business diversification and linked capital allocation, along with building resilient supply chains while keeping their overall institutional ESG principles in mind,” said Divyesh Dalal, Managing Director and Country Head – Global Transaction Services, Corporate Banking – Financial Institutions and SMEs, DBS Bank India.

While there is enhanced focus for digitalising treasury operation, the survey shows that cybersecurity and ‘ineffective usage of data tools’ remain the top concern for over 70% of the professionals so surveyed. Limited analytical capabilities of the team members remain the reason for ineffective usage of such tools.

The growing affinity towards Generative AI tools is due to the ability of such tools to produce real-time insights with minimal manual effort. In addition to the automation tools, data visualisation and security monitoring are equally important tools that professionals are looking at using to turn their organisations more intelligent and data-agile.

“Businesses are grappling with the confluence of several larger trends which are accelerating simultaneously – the ubiquity of AI, climate change, geopolitical uncertainty and evolving trade complexities. As financial strategists, the treasury function is proactively looking to modernise as it integrates multiple agendas to unlock smarter, more sustainable growth,” said Santanu Mitra, Managing Director & Country Head – Corporate Banking (Large and Midcap), DBS Bank India.

The report entailed DBS and EY developing the Strategic Effectiveness Indicator (SEI), which translated the CFO and treasurer ratings into an aggregate score to gauge strategic effectiveness. The report was prepared following a survey of 690 treasury and finance leaders across 14 markets in a span of one month between March and April this year, and in-depth interviews were conducted with select 11 CFOs and treasurers. Technology, consumer products, and automotive firms were the top respondent groups.