“Intelligent” finance and treasury management: what we can expect

Abstract

Artificial intelligence poses a particular challenge in its application to finance/treasury management because most treasury functions are no longer physical processes, but rather virtual processes that are increasingly highly automated. Most finance/treasury teams are knowledge workers who make decisions and conduct analytics within often dynamic frameworks that must incorporate environmental considerations (foreign exchange rates, GDP forecasts), internal considerations (growth needs, business trends), as well as the impact of any actions on related corporate decisions which are also highly complex (e.g., hedging, investing, capital structure, liquidity levels). Artificial intelligence in finance and treasury is thus most analogous to the complexity of a human nervous system as it encompasses far more than the automation of tasks. Similar to the human nervous system, AI systems in finance/treasury must manage data quickly and accurately, including the capture and classification of data and its integration into larger datasets. At present, the AI network neural system has been gradually improved and is widely used in many fields of treasury management, such as early warning of potential financial crisis, diagnosis of financial risk, control of financial information data quality and mining of hidden financial data, information, etc.

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Source: own construction

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Source: IBM

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Source: IBM

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Source: own construction

Notes

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Correspondence to Petr Polak.

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Polak, P., Nelischer, C., Guo, H. et al. “Intelligent” finance and treasury management: what we can expect. AI & Soc 35, 715–726 (2020). https://doi.org/10.1007/s00146-019-00919-6

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Keywords

  • Artificial intelligence
  • Corporate finance and treasury management
  • Finance and Treasury 4.0
  • Industry 4.0
  • Robotic process automation
  • Machine learning