5 Ways Artificial Intelligence (AI) Can Revolutionize Cash Flow Management and Performance


In 2023, Gartner's prediction that "by 2020, embedded AI will become a key differentiating factor" in streamlining critical functions, such as cash flow performance, has undoubtedly materialized. AI-infused platforms are not just playing a transformational role but have become indispensable for businesses seeking to enhance their financial health and secure long-term viability. Here's how they are achieving this:

1. Advanced Automation of Key Processes

Accounts receivable (AR) and accounts payable (AP) tasks, traditionally labor-intensive and time-consuming, have undergone immense change. AI has matured beyond merely processing routine tasks such as sending invoices, matching payments to invoices, and running dunning campaigns. The technology has evolved to a level where complex functions like contract analysis, credit scoring, and risk assessments are being performed with unparalleled speed and precision.

2. Robust Predictive Models and Decision-Making

AI's capabilities have been significantly amplified by leveraging the power of machine learning and big data analytics. AI-based platforms can now pull not just real-time, actionable information but also perform intricate trend analysis and pattern recognition on historical data. It has the capacity to process vast amounts of data instantaneously, thereby giving finance departments the foresight to make informed decisions concerning:

  • Anticipated pay dates for invoices

  • Potential customer churn

  • Trends in supplier costs

  • Changes in market conditions

3. Enhancing Collaboration and Breakdown of Silos

AI has become the catalyst for fostering seamless collaboration between different business units. Beyond connecting the entire finance team, AI has made it possible for other departments to operate based on a common, accurate, and real-time cash flow view. Integrating data across different platforms has made data-driven decision-making the new normal in organizations.

4. Drastic Reduction of Errors

Software Trends highlights the ability of AI-based systems to reduce annual losses by 23%, demonstrating their powerful capacity to minimize errors. Gartner further adds that without AI, financial forecasting and planning—which are labor-intensive processes—”suffer from inherent human biases, as predictive models may be ‘tweaked’ to generate favorable (or expected) outcomes.” The introduction of automated systems effectively mitigates these biases, paving the way for more accurate and dependable decision-making.

5. Transformation of Experiences

AI has significantly transformed experiences for employees, customers, and vendors alike. Automation has freed finance staff from repetitive tasks, enabling them to focus on strategic work. Real-time and predictive data provided by AI has empowered other departments to proactively identify client needs, fulfill orders, and answer requests, thus leading to an enhanced customer experience.

Tesorio’s AI-embedded Cash Flow Management Platform has become a game-changer for finance teams. The platform doesn’t just provide a clearer view of real-time financials but also leads to a consistently healthier organization by enhancing efficiency, promoting informed decision-making, and improving experiences.

Are you ready to revolutionize your cash flow with AI? Contact Tesorio today.