A recent report by HSBC, in partnership with Accenture, reveals the growing role of artificial intelligence (AI) in reshaping the world of payments and treasury solutions.

As the financial sector evolves, AI is emerging as a key player in driving the next wave of innovation in these areas.

AI’s Increasing Role in Risk Management

The report, titled Navigating the AI Wave: Innovations in Commercial Payments, highlights that finance leaders are becoming more reliant on AI to improve their decision-making processes, particularly in risk management.

Currently, 38% of finance leaders find AI extremely useful, but this is expected to rise to 61% in the near future.

This shift shows that AI tools are expected to become essential in managing financial risks effectively.

Tackling Complex Challenges with AI

While AI has been utilized for automating basic tasks, it is now being leveraged to solve more complex problems within treasury and payment systems.

AI is helping to overcome various industry pain points such as improving client servicing, streamlining payment processes, generating real-time data, and enhancing fraud prevention.

This expanded use of AI is pushing the boundaries of what was once possible in financial technology.

Challenges to AI Adoption

However, despite AI’s immense potential, the report reveals a significant gap between business needs and readiness to implement AI in payment and treasury functions.

Many organizations struggle to harness the full power of AI due to outdated architecture and infrastructure that limits its integration.

The report urges businesses to invest in modern infrastructure that allows for seamless data integration and to develop governance frameworks to manage the risks associated with adopting AI technology.

Recommendations for Future AI Integration

To maximize the benefits of AI, the report recommends that businesses work closely with technology providers, banks, and consultants to tailor AI tools to their specific treasury needs.

This collaboration will help bridge the gap between current limitations and the future capabilities of AI-powered payment systems.

As the landscape of payments and treasury continues to evolve, it is clear that AI will play a pivotal role in shaping the future of the industry.

HSBC Holdings, the parent company of HSBC, is headquartered in London and serves clients across 58 countries and territories.