Majority of Chief Financial Officers consider AI tools as modernizing forces for treasury operations, according to a global survey conducted by DBS.
Article Title: Global Finance Leaders Embrace AI and Sustainable Trade Finance Solutions
In a rapidly changing macroeconomic environment, Chief Finance Officers (CFOs) and treasurers worldwide, including in India, are increasingly adopting Generative AI and AI-powered tools to enhance treasury operations and risk mitigation, according to a recent DBS report titled "New Realities, New Possibilities."
The survey, which polled 800 finance leaders across seven sectors and 14 markets, reveals a significant shift in priorities. Liquidity and foreign exchange (FX) management has moved from seventh place to second in importance, indicating a growing focus on financial resilience.
One of the key trends emerging from the report is the automation of routine treasury tasks. AI is extensively used to automate repetitive processes such as bank reconciliations, transaction matching, cash reporting, and intercompany reconciliations. This automation reduces errors and manual work significantly, freeing treasury professionals to focus on higher-value activities like liquidity management and strategic cash optimization.
AI-driven risk monitoring and alerting is another area of focus. Agentic AI or autonomous AI agents are being employed to monitor risk limits continuously and send real-time alerts when thresholds are breached. This proactive monitoring helps treasury teams quickly react to potential risks without disrupting other operations, enhancing risk mitigation capabilities.
Enhanced data aggregation and decision support is another benefit of AI. AI's ability to rapidly aggregate and normalize fragmented proprietary and third-party data improves traders’ and treasurers’ visibility into market conditions and risk profiles. This leads to more informed, timely decision-making on risk ratios and exposures, especially in complex markets like repo trading.
Finance teams are also moving beyond experimentation to targeted integration of AI into key treasury workflows such as month-end close, compliance reporting, and tax calculations. Purpose-built AI platforms tailored for finance workflows help achieve measurable ROI by accelerating processes and improving accuracy.
Generative AI for intelligent document processing and natural language interaction is another innovative area. Tools generate financial documents such as loan applications, contracts, and compliance reports in minutes rather than days. Personalized financial content and dynamic scenario planning powered by AI enhance treasury’s ability to simulate outcomes and adapt to changing contexts.
In India, these trends are mirrored in the country’s treasury functions where large and midsize enterprises increasingly adopt AI-driven automation for cash management, compliance, and risk monitoring, driven by market and regulatory pressures. The increasing digitization and AI readiness across Indian financial sectors accelerate this adoption.
The report also highlights the growing interest in sustainable trade finance solutions. In India, 80% of businesses affirm that sustainable trade finance solutions like green bonds and ESG-linked loans will support green initiatives and compliance with green standards.
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 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 customised solutions backed by strong Asian connectivity and advanced digitalisation.
In conclusion, Generative AI and AI-powered tools are becoming indispensable for reducing operational friction, enhancing risk monitoring, improving forecasting, and increasing adaptive capacity in treasury operations globally and in India. The innovation focus is largely on reducing manual effort in high-volume transactional processes and deploying AI for real-time risk alerts and smart data-driven decision support. Human oversight remains vital, however, as AI complements rather than replaces expert judgment in complex scenarios.
- Finance teams, including those in India, are leveraging technology in their business operations, integrating AI into key workflows such as risk monitoring, cash management, and compliance reporting to streamline processes and improve accuracy.
- The banking sector in India is recognizing the importance of sustainable trade finance solutions, with 80% of businesses seeing green bonds and ESG-linked loans as vital for supporting green initiatives and ensuring compliance with green standards.
