[SINGAPORE] Based on a global survey by DBS released on Wednesday (July 16), companies around the world are rethinking their long-term strategies as volatility rises, using generative artificial intelligence (GEN AI) tools of particular interest.
Companies that voted in two batches before and after the so-called “liberation date” in April, sought data-driven financial information, liquidity and forex (FX) management, and working capital efficiency, were sought for the most prioritized improvements over the next five years.
Around 70% of the approximately 800 financial leaders voted in seven sectors, with 14 markets hoping for GEN AI tools. This included areas of liquidity and Forex management. This jumped from 7th to 2nd in terms of priorities after the tariffs were announced.
“We are pleased to announce that we are a sought after exploring the country,” said Peng Fuchao, head of mainland China, Lenovo's Treasury Secretary. “Data-driven decision-making is becoming a core competitive advantage that seeks to introduce businesses into capital and financial operations to help them manage and interpret large data sets.”
Over half of respondents cited regional and global geopolitical tensions as the top-level macroeconomic trend affecting inflation and interest rate volatility and the need to improve financial resilience with supply chain disruption.
The findings came after Singapore's senior minister, Lee Hucien Long, said the tariffs were not temporary even after President Donald Trump's current term was over.
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Meanwhile, the development of new technologies, such as Gen AI and blockchain-powered tools, was considered a positive driving force for innovation and operational efficiency by 83% of respondents.
“We are pleased to announce that we are a global transaction service group head at DBS,” said Lim Soon Soon, Group Head of DBS' Global Transaction Services. “Singapore has a world-class infrastructure, including data centers. Companies can rely on a stable supply of computing power to pursue a data-driven strategy and adopt next-generation tools like Gen AI.”
The rise of Gen AI in businesses
The key attraction of Gen AI in Financial Intelligence was the possibility of real-time insights without the need for many manual inputs, respondents said. This increases objectivity in financial decision-making, allowing for more accurate cash flow forecasting and the adoption of aggressive capital strategies.
The accuracy and strategic forecasting of AI tools have also been cited as a useful feature of fluidity and FX management, indicating that over 70% of respondents are investigating their use in the next two years.
Over half of respondents expressed interest in blockchain-based capabilities, integrated payments, and setting up regional finance centres to improve liquidity and Forex management.
Approximately 69% of leaders said they were exploring AI generals to increase working capital efficiency. These tools aim to improve cash conversion cycles to improve inventory forecasts, overcome accounts receivable collection periods, increase financial flexibility and optimize returns.
Companies show that interest in AI tools can transform and strengthen their financial operations, the study says.
Singapore as a hub for FX and AI tools
While small in the land area, Singapore hosts more than 4,000 regional headquarters and financial centres. It is the world's third largest FX center and has a robust infrastructure that includes data centers that are increasingly sought after for AI, DBS said.
“Singapore is well positioned to support businesses as they adjust their financial strategies to remain resilient in a changing world,” Lim said.
City-states are also data center hubs that can support the demand for data-driven financial intelligence and GEN AI tools. Singapore – The Johor Batam Corridor (the main hub for data traffic in Southeast Asia) is projected to meet half of the regional data centre demand by 2030.
Singapore was the biggest option for companies establishing financial centres in Asia, DBS said in another 2024 survey, putting them in a strong position to better manage liquidity, strengthen Forex and strengthen working capital.
