Real-Time Reality Check: How Digital Payments Are Driving Treasury’s AI Evolution

Treasurers who once relied on outdated spreadsheets and manual processes are now facing a new reality: real-time treasury services powered by artificial intelligence (AI), digital money movement and automated synchronous functionalities across core operations.

From predicting cash flow to flagging suspicious transactions, innovations in payments and operations are transforming treasury operations into a high-tech, real-time nerve center. After all, the ability to see where every penny is going — and where it will be needed next — has never been more critical, especially in a global market where volatility is the only constant.

And the automation of core treasury functions — such as cash pooling, FX hedging and liquidity management — affords treasurers a level of operational efficiency that wasn’t possible with traditional methods. Instead of spending time manually forecasting cash flows or managing liquidity positions, treasurers can now dedicate their efforts to more strategic initiatives.

However, these advancements are not without challenges. The transition to digital money and AI-driven treasury systems will require treasurers to navigate a rapidly evolving regulatory landscape, manage security risks and develop new competencies to fully harness the technology’s potential.

Read more: Unlocking the Critical Role of Treasurers in Corporate Decision-Making

A Real-Time Vision for the Future of Treasury

PYMNTS Intelligence data on corporate treasury challenges and opportunities found that corporate workflows can, and should, benefit from everything from automated daily reconciliation across all bank accounts to advanced cash flow forecasting.

“It’s not just about the typical treasury workstations and ERP systems,” Maria Chavez, head of payments for core middle market and specialized industries at J.P. Morgan, told PYMNTS, adding that “it’s about data analytics and business intelligence, robotics and AI.”

With AI-powered algorithms, treasurers can now predict cash flow needs with a high degree of accuracy. Real-time forecasting allows businesses to avoid cash shortfalls or surpluses by leveraging dynamic insights and continuously updated data streams.

“Cash flow can be a blind spot for the finance team,” Noam Mills, CEO at Panax, told PYMNTS, noting that traditional cash flow management can often be reliant on manual processes and reactive measures.

Still, as technology continues to evolve, treasurers must balance the benefits of automation with the need for human oversight, ensuring that technology supports — not replaces — the strategic role of treasury in business success. The shift to real-time treasury is not just a matter of efficiency; it’s a key enabler of strategic growth and resilience in an increasingly complex global economy.

“The treasury function has definitely increased in importance, and has definitely been enhanced in terms of the versatility that needs to be looked into,” Ole Matthiessen, global head of cash management at Germany’s Deutsche Bank, told PYMNTS in an interview.

See also: Treasury’s Digital Migration Creates Greater Synergies With Finance Function

Overcoming the Lag in Treasury Technology Adoption

Real-time treasury technologies, AI and digital currencies are more than just operational enhancements — they are tools that will redefine the role of treasury in global businesses. Treasurers who embrace automation can shift from being custodians of cash to becoming strategic advisors who drive financial performance and innovation within the organization. The future treasury will be marked by a greater focus on decision-making, risk management and long-term growth rather than transactional functions.

Despite the evident benefits of real-time treasury technologies, many treasurers can find themselves hesitant to adopt automation and digitalization in full. Treasury teams, long accustomed to manual processes and periodic reporting, may be resistant to transitioning to automated systems that require rethinking workflows and business practices.

In an interview posted July 31, Ernest Rolfson, founder and CEO of Finexio, said the shift to digital payments is not just about adopting new technologies, but also about changing organizational mindsets and demonstrating the courage to innovate and achieve a paperless operation.

At the same time, real-time treasury technologies often require integration with a company’s existing Enterprise Resource Planning (ERP) system, accounting software and banking relationships. The perceived complexity of implementation can deter companies from making the leap.

“One of the key things we always hear is how do we get at the forefront of that technology budget,” Janette Hutton, head of international payments for U.S. corporations at J.P. Morgan, told PYMNTS.

But as the gap widens between those firms that embrace digital innovations, and those that remain mired in paper-based processes, making the shift to the next-generation of treasury management is becoming less of an option and more of an imperative.