TLDR: A recent DBS survey, ‘New Realities, New Possibilities,’ indicates that 79% of Indian Chief Financial Officers (CFOs) and treasurers are leveraging generative AI to modernize treasury operations and mitigate risks. The report highlights a global trend towards AI adoption in finance, with a strong focus on data-driven financial intelligence, liquidity management, and sustainability initiatives amidst economic uncertainties.
Mumbai, India – A new report from DBS, titled ‘New Realities, New Possibilities,’ reveals a significant shift in the strategic priorities of Indian finance leaders, with a strong inclination towards the adoption of generative artificial intelligence (GenAI) for critical treasury functions. The survey, which gathered insights from 800 finance leaders, including CFOs and corporate treasurers, across seven sectors and 14 markets, underscores the growing confidence in AI’s transformative potential.
According to the findings, a striking 79% of Indian CFOs and treasurers believe that Generative AI and other AI-powered tools will be instrumental in modernizing treasury operations and enhancing risk mitigation strategies. This local sentiment surpasses the global average, where approximately 69% of finance leaders are exploring GenAI solutions to optimize various financial processes.
The report identifies several key areas where AI is expected to make a substantial impact. These include improving data-driven financial intelligence, bolstering liquidity and foreign exchange (FX) management, and enhancing overall working capital efficiency. Specifically, finance leaders are looking to GenAI to refine inventory forecasting, streamline cash conversion cycles, and reduce lags in receivables collection.
Divyesh Dalal, Managing Director and Head – Global Transaction Services, SME & Financial Institutional Group, DBS Bank India, commented on the evolving landscape: “The new reality is increasingly being defined by uncertainty, and within this context a discernible shift is underway for treasury and finance leaders who are not only strategic enablers for their companies, but also managers of business risk.”
Beyond operational efficiencies, the survey also highlights a strong commitment to sustainability. A significant 80% of Indian businesses affirmed that sustainable trade finance solutions, such as green bonds and Environmental, Social, and Governance (ESG)-linked loans, will play a crucial role in supporting green initiatives and ensuring compliance with evolving green standards. Companies are actively considering various approaches to advance sustainability, including using digital tools to enhance the rigor of ESG reporting (77% of respondents) and partnerships with ESG ecosystem networks (64%).
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Santanu Mitra, Managing Director and Country Head – Corporate Banking, DBS Bank India, added, “Businesses are grappling with the confluence of several larger trends which are accelerating simultaneously – the ubiquity of AI, climate change, geopolitical uncertainty and evolving trade complexities.” This statement encapsulates the multifaceted challenges and opportunities that finance leaders are navigating, with AI emerging as a pivotal tool for resilience and strategic growth.
