[SINGAPORE] Businesses around the world are rethinking long-term strategies as volatility rises, with generative artificial intelligence (Gen AI) tools of particular interest, based on a global survey by DBS released on Wednesday (Jul 16).
With companies polled in two batches – before and after the so-called “Liberation Day” US tariffs in April – data-driven financial intelligence, liquidity and foreign exchange (FX) management, and working capital efficiency were the highest priority improvements sought across the next five years
About 70 per cent of some 800 finance leaders polled across seven sectors and 14 markets used Gen AI tools. This included the area of liquidity and FX management, which jumped from seventh place to second place in terms of priority after the tariffs were announced.
Peng Fuchao, Lenovo’s treasury director in mainland China, said: “Data-driven decision making is becoming a core competitive advantage, with enterprises trying to introduce Gen AI into capital and financial operations to help manage and interpret large data sets.”
More than half the respondents cited regional and global geopolitical tensions as the top negative macroeconomic trend influencing the need to improve financial resilience, with inflation and interest rate volatility, as well as supply chain disruptions close behind.
The survey results came after Singapore’s Senior Minister Lee Hsien Loong stated that the effect of tariffs was not going to be temporary, even after the end of US President Donald Trump’s current term.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Meanwhile, the development of new technologies such as Gen AI and blockchain-powered tools were considered to be positive drivers of innovation and operational efficiency by 83 per cent of respondents.
Lim Soon Chong, group head of global transaction services at DBS, said: “Singapore has world-class infrastructure, including data centres. Businesses can rely on its stable supply of computing power to pursue data-driven strategies and adopt next-generation tools like Gen AI.”
Rise of Gen AI in enterprises
A key attraction of Gen AI for financial intelligence was its potential for real-time insights without requiring much manual input, said respondents. This provides greater objectivity in financial decision-making, allowing for more accurate cashflow forecasting and the adoption of proactive capital strategies.
The precision and strategic foresight of AI tools was also cited as a useful feature in liquidity and FX management, with more than 70 per cent of respondents indicating that they were exploring their use in the next two years.
More than half of respondents also indicated an interest in blockchain-based capabilities, integrated payments, and the set-up of regional treasury centres to improve liquidity and FX management.
About 69 per cent of leaders said they were exploring Gen AI to enhance working capital efficiency. These tools aim to improve inventory forecasting, overcome prolonged receivables collection periods and improve cash conversion cycles in order to enhance financial flexibility and optimise returns.
Businesses indicated an interest in AI tools to transform and enhance their treasury operations, the survey stated.
Singapore as a hub for FX and AI tools
While small by land area, Singapore plays host to more than 4,000 regional headquarters and treasury centres. It is the world’s third-largest FX centre and has robust infrastructure that includes increasingly sought-after data centres for AI, DBS noted.
“Singapore is well-positioned to support businesses as they calibrate their financial strategies to stay resilient in a changed world,” said Lim.
The city-state is also a data centre hub that can support the demand for data-driven financial intelligence and Gen AI tools. The Singapore-Johor-Batam corridor – a major hub for data traffic in South-east Asia – is projected to meet as much as half of the region’s data centre demand by 2030.
Singapore was a top choice for companies establishing treasury centres in Asia, said DBS in a separate survey in 2024, putting it in a strong position to assist businesses in their bids to better manage liquidity and FX and strengthen working capital.
