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


In 2018, Gartner predicted that, “By 2020, embedded AI will become a key differentiating factor” in streamlining critical functions, such as cash flow performance. As anticipated by the global research firm, AI-infused platforms are now playing a transformational role in helping businesses improve their financial health and secure their long-term viability in the following ways.

1. Intelligent Automation of Key Processes

Many accounts receivable (AR) and accounts payable (AP) tasks are labor-intensive and time-consuming. The result is a lose-lose scenario—either spend more on staff to perform these tasks or settle for disconnected cash flow.

AI turns this dilemma into a win-win by automatically processing routine AR and AP tasks, such as sending invoices, matching payments to invoices, running dunning campaigns, and analyzing expenses. As a result, you collect invoices quicker and avoid paying for things billed to you in error or duplicate.

2. Building Predictive Models

As Accounting Today explains, AI-based platforms can pull real-time, actionable information including customer demographics and firmographics, past transactions, and a range of external factors. Its ability to instantaneously synthesize such a vast quantity of varied data provides your finance department with the ability to accurately predict what’s going to happen and how it will impact cash flow, including:

  • Anticipated pay dates for invoices
  • Potential customer churn
  • Trends in supplier costs
  • Changes in market conditions

With more reliable forecasting ability, you can proactively chart a course to capitalize on positive factors and counteract negative ones.

3. Fostering Collaboration

Business unit silos are always counterproductive. Even so, organizations still struggle to break down those walls. AI provides the perfect battering ram to this lingering problem.

Within cash management applications, AI connects the entire finance team to the data each member needs to see in real-time. Moreover, it bridges the divide between other departments by allowing everyone to operate off of a common, accurate and readily available cash flow view.

4. Eliminating Errors

According to Software Trends, “AI-based systems can help bring down losses by 23 percent annually” because they aren’t prone to mistakes like humans. This means businesses base decisions on accurate information.

And Gartner points out that, without AI, the labor-intensive work of financial forecasting and planning also tends to “suffer from inherent human biases, as predictive models may be ‘tweaked’ to generate favorable (or expected) outcomes.” Such distortions lead to faulty decisions.

5. Improving Experiences

Last, but not least, AI enhances the relationships with the people that your business needs the most—its employees, its customers, and its vendors. The finance staff is relieved of repetitive tasks and can focus on more impactful and strategic work. Other employees in sales, operations, and customer service have access to information that allows them to proactively identify client needs, fulfill orders, and answer requests. This leads to an overall improved customer experience.

Picture of Cash Flow Health

Everyone knows the advantage of working smarter, not harder. AI-embedded cash flow performance platforms are the epitome of this maxim. Not only do they automatically give you a clearer view of your business’s real-time financials, but they lead to a consistently healthier organization.

Ready to see how AI can revolutionize your cash flow? Contact Tesorio today.