Intelligent automation making cash management more efficient; Here’s why

Intelligent automation and cash management: The integration of intelligent automation in cash management is reshaping the business landscape. According to a recent study by PwC, 60 per cent of companies adopting intelligent automation in cash management are experiencing significant reductions in invoice processing time.

"Manual cash management, once a mainstay for businesses, is now posing challenges to their growth. As businesses expand, manual operations necessitate costly personnel hires and lack the adaptability needed to respond to dynamic market conditions and customer demands. This limitation hinders businesses from optimising their cash management strategies," said Animesh Samuel, Co-Founder & CEO, E42.

"Enterprises that cling to manual cash management are finding it increasingly difficult to compete. Their counterparts leveraging automation gain an advantage in speed, accuracy, and decision-making capabilities, leaving manual-reliant organisations struggling to meet market demands and effectively manage risks," he added.

Advanced AI assistants

Manual cash management often involves repetitive, mundane tasks that are prime candidates for automation. However, traditional Robotic Process Automation (RPA) falls short when dealing with unstructured financial data like bank statements and invoices.

"Intelligent AI-powered assistants, equipped with advanced cognitive capabilities, AI, machine learning, and Natural Language Processing (NLP), excel at handling unstructured data, interpreting complex financial information, and generating actionable insights. They seamlessly integrate with various software and data systems," Samuel emphasised.

Unlike rule-based automation, intelligent AI assistants continuously enhance their performance by adapting to new information and identifying patterns. They automate tasks ranging from data extraction and payment processing to cash forecasting and risk analysis, transforming cash management.

Data-driven decision-making

Intelligent automation's standout advantage lies in its enhanced forecasting accuracy. By leveraging historical data and real-time cash flow visibility, these systems predict future trends and cash needs with precision. Research from McKinsey indicates that AI forecasting engines can automate up to 50 per cent of workforce-management tasks, resulting in cost savings and improved decision-making.

Moreover, these intelligent AI solutions seamlessly integrate with accounting software, ERP systems, and CRM systems, centralising financial data for thorough analysis, trend identification, and data-driven decision-making.