Report: Businesses Use of AI to Predict Cash Flows Expected to Increase 450%


Enterprise Deployment of AI and Machine Learning (ML) for Cash Flow Forecasting Expected to Increase 450% Over Next Two Years, According to 2021 Cash Forecasting and Visibility Survey Recently published by GTreasury and Strategic Treasurer. Survey of nearly 250 companies across industries highlights a growing appetite for AI / ML modernization among finance and treasury teams looking for more accurate and immediate cash flow forecasts .

To refine forecasting capabilities (which are critical in determining business direction and priorities), businesses today are adopting new technology strategies and refining methods to introduce greater automation and efficiency. While only 6% of respondents currently use AI / ML technology to forecast and understand their cash flow forecast, plans reported by companies indicate that within two years that number will rise to 27%.

Respondents also point to an equally bright trajectory for regression analysis: 12% are currently using it, but predicted use will increase to 29% in two years, and 43% are using or planning to use it again. some time in the future.

The vast majority of companies still rely on traditional manual methods for forecasting cash flow: 91% of respondents say they use Excel spreadsheets as one of their forecasting tools. In comparison, 25% have a more modern digital treasury platform and 28% use ERP systems. Fifteen percent use financial analysis (FR&A) or budgeting tools to help them with their forecasting, and only 5% use a dedicated forecasting platform.

Analysis of variance is another task requiring significant manual effort on the part of companies: 57% of respondents say their ANOVA activities are entirely manual, and 19% report significant manual activities. One-fifth of companies avoid this manual effort just by not performing any analysis of variance. The remaining 5% of respondents use gap analysis that relies on fully automated processes.

The survey findings are pearls strung along a common thread: businesses recognize and demand the benefits of more efficient and effective cash flow forecasting. With investments in AI / ML and other advanced capabilities, many companies are already pursuing new strategies and spending what it takes to provide them with the tools and technologies they need.

Read the full report from GTreasury and Strategic Treasurer.


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