By Thomas Gavaghan, Vice President of Global Pre-Sales at Kyriba
In 2025, treasurers will find themselves at the intersection of technological transformation and economic uncertainty. While AI, specifically Machine Learning, has long supported automation in finance, its maturity is now enabling deeper insights and strategic decision making. This evolution will be particularly evident with the increased use of generative AI, a game changer poised to redefine treasury operations and capabilities.
Though it may seem to some like the latest buzzword, AI’s growth is undeniable. A recent Deloitte study shows that 85% of respondents use AI in their personal lives (a 13% increase from last year), while 34% employ it in professional contexts – an 18% jump. This rapid adoption is mirrored in finance, with KPMG reporting that 62% of companies utilise AI moderately in finance, and 92% say their investments in AI are meeting or exceeding ROI expectations.
As we look at what’s ahead, it’s clear that GenAI will not just enhance operational efficiency; it will empower treasurers to optimise financial strategy, navigate complexity, and drive innovation.
From Automation to Strategic Insights
AI’s early promise in treasury is rooted in automation; namely, reducing manual tasks and improving efficiency. While this will continue to be a valuable application, GenAI’s ability to analyse vast datasets, generate predictive insights, and simulate complex scenarios marks a significant leap forward.
For treasurers, this evolution means moving from reactive decision-making to proactive strategy. For instance, GenAI processes diverse datasets to uncover hidden patterns, model various financial scenarios, and even help predict market dynamics. Armed with these insights, treasurers can develop more robust hedging strategies, optimise working capital, and navigate liquidity challenges with greater precision.
By blending AI-driven insights with human expertise, treasurers will transition from task management to true strategic optimisation – aligning financial strategy with broader organisational goals.
Breaking Barriers in Data & Compliance
Despite its transformative potential, AI adoption in treasury has been cautious, primarily due to concerns around governance, compliance and data security. This caution is justified: treasury functions operate within rigorous frameworks that prioritise risk management and stability.
However, 2025 will see the establishment of formal AI-driven cultures in treasury, with clear protocols addressing compliance and security challenges. This is critical, as 57% of finance leaders cite data privacy and security as the primary barriers to AI adoption, according to a recent KPMG study.
A secure and governed approach to AI will allow treasurers to harness its potential without compromising controls. Additionally, advancements in SaaS technologies will play a pivotal role, enabling real-time data access and integration – prerequisites for successful AI implementation.
The Role of GenAI Amid Economic Headwinds
Another reality treasurers will continue to face is a complex economic landscape, marked by geopolitical uncertainties and divergent monetary policies. Central banks like the Fed are signing potential rate cuts, while others, such as the Bank of Japan, lean toward rate hikes. These shifts will have far-reaching implications for liquidity management, capital structures, and FX exposures.
GenAI will be instrumental in helping treasurers navigate these headwinds. By simulating potential outcomes of rate changes, GenAI can assist in crafting adaptive liquidity strategies. It can also analyse geopolitical activities to identify opportunities to mitigate risk.
The partnership between AI and human judgement will be critical here. GenAI can offer predictive insights, but it remains the treasurer’s expertise that will contextualise and act on them – ensuring a balanced approach to limiting risk and seizing opportunity.
SaaS Technology: The Foundation for AI-Driven Treasury
The shift to SaaS-based treasury platforms will be another defining trend in 2025. Legacy systems, with their limited ability to process and analyse real-time-date, are ill-equipped to support the demands of AI.
While AI can technically be integrated into any system, its effectiveness hinges on data quality. Platforms that struggle with incomplete or inconsistent data undermine the value of AI-driven insights. This is why agile, cloud-based systems are fast becoming essential; they provide the foundation treasurers need to fully leverage AI and optimise performance.
For organisations, this shift represents not just a technological upgrade but a competitive advantage by enabling faster, data-driven-decision-making in an increasingly complex financial environment.
GenAI and the Future of Treasury Landscape
Looking ahead, GenAI’s role in treasury will also extend beyond technical applications by influencing leadership and organisational culture. With KPMG’s finding that 92% of finance leaders report positive ROI from AI investments, it’s clear that these tools are delivering tangible value. However, their full potential will be truly realised when paired with a forward-thinking-mindset.
Treasurers who embrace AI as a strategic enabler to not just reduce repetitive tasks, but to optimise their strategic decision making will lead the way. By leveraging GenAI to address both current challenges and long-term opportunities, they can position their organisations for sustained success.
The treasurer’s role in 2025 will be defined by this balance; blending cutting-edge technology with strategic insight to navigate uncertainty and unlock new value. Those who can harness GenAI effectively will set the standard for the future of treasury in the year ahead – and beyond.
