Today’s softening economic conditions are driving a corresponding shift in business priorities.
In the face of challenging macro headwinds, it is more important than ever for companies of all sizes and industries to rethink their growth strategies, identify efficiencies and better manage cash flow. .
Jarrett Bruhn, Managing Director and Head of Data and Artificial Intelligence (AI), Global Transaction Services, said: bank of americatells PYMNTS that there has never been a better time for organizations to double down on their cash flow forecasting capabilities.
reason? According to Bruhn, it’s a “amazing” advance in AI and machine learning (ML) technology that can be integrated into finance and finance departments to support organizational goals.
“AI and ML are transforming all assets. This is the equivalent of Industrial Revolution 4.0,” he said. “Given that finance professionals are looking to find operational efficiencies and cost efficiencies, these tools and technologies are fundamentally changing the way they conduct their day-to-day work.”
read more: How data-driven decision-making can help CFOs manage spending and growth cycles
Predictions at the forefront
Cash flow forecasting helps companies anticipate and manage potential cash flow problems, make informed business decisions, and ensure that they have enough cash to weather a difficult economic environment. Helpful.
Forecasting is an important part of an organization’s overall business strategy and is becoming increasingly important. Cash flow intelligence helps drive a roadmap reality that balances growth and profitability.
“Prediction never stands alone,” says Bruhn. “[Businesses] To understand what is influencing, where patterns lie, and identify the key factors that influence forecasts, we need to know what factors change forecasts. ”
In the face of ongoing macro headwinds, internal leaders want technology that will help them strategically proactively and successfully implement growth strategies.
Whether it’s geopolitical risk, today’s inflationary environment, or even the devastating surprise of a global pandemic, Bruhn stresses that “something is always going on,” giving CFOs and finance teams the ability to adapt and adapt. We stressed the importance of having predictive tools. changing reality.
See also: Generative AI is already powering the CFO office while eliminating redundancies
Financial management becomes a growth engine
Modern digital solutions help finance teams adopt a holistic and integrated approach to growth planning. It improves and evolves how real-time operational and market data is leveraged, often improving workflow accuracy and productivity.
Bruhn says: “However, key factors such as sales, working capital cycle and salaries remain consistent.”
Enterprises leveraging future-proof solutions that leverage embedded AI, including Bank of America’s own CashPro Forecastleaders find that not only is accuracy improved, but they can run different “shock” scenarios to better understand the impact of unexpected events on cash flow.
He said the flexibility of current AI-driven models is virtually limitless. The ingredients your industry and your company need. ”
He notes that as corporate finance departments move from being “somewhat cost centers” to being the “fundamental” engines of their businesses, organizations find that if they can get finance operations right, they can change the way they do business. emphasized.
“Forecasts impact a company’s bottom line … Advice is always to ‘peel the onion’ and focus on the following areas: [activating data] will have the greatest impact [on your company]said Brune. Plus, a massive data toolbox gives financial professionals incredible transparency. [most importantly] You can see how they all touch different areas. ”
What are Bank of America leaders most excited about for the future?
Beyond the prospect of “a 180-degree dashboard … where finance people can look at all these technologies and always understand what’s going on with their cash flow,” Bruhn said, advancements in natural language processing (NLP) solutions said that excited him. many.
“Our clients are very digitally engaged and want their input on what the next product might look like. In the futuristic “seamless finance” there is no reason to call the bank as these intelligent solutions can proactively handle all pain points. So, ultimately, that’s what we’re trying to solve, empowering clients with data. ”
