79% of Indian Chief Financial Officers, treasurers bet on AI for risk mitigation: DBS Report

A recent report by DBS Banks has revealed that about 79% of Indian Chief Financial Officers (CFOs) and treasurers believe that Generative AI and AI-powered tools will help risk mitigation and enhance treasury operations.

The report titled New Realities, New Possibilities mentioned that Indian CFOs and Treasurers are adopting GenAI solutions to enhance cash flow forecasting, liquidity management, and risk mitigation, driving treasury efficiency at scale.

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Bank partners can play a key role in accelerating this transformation by offering AI-powered forecasting models, it added.

The report surveyed 800 finance leaders, including CFOs and corporate treasurers, across seven sectors and 14 markets, including 80 from India, showing that businesses are recalibrating their long-term strategies to strengthen financial resilience over the next five years.

Another crucial aspect highlighted by the report was that as global trade dynamics shift, particularly with the rise in tariffs on Chinese electric vehicles (EVs), India is emerging as a strong contender to capture new market share.

The rapid expansion of domestic production capacity is prompting firms to strengthen treasury operations, ensuring financial agility in an increasingly competitive landscape.

Concurrently, the Indian market’s booming technology sector brings new sustainability imperatives: rising energy consumption and mounting e-waste are pressing concerns that companies must address to attract ESG-focused investors and safeguard long-term resilience, the report said.

With consumer spending projected to nearly double by 2030, businesses are doubling down on capital cost optimisation to preserve margins and tap into the growing demand from India’s expanding middle class, it highlighted.

Escalating geopolitical tensions, particularly in energy exporting regions, may potentially drive crude oil prices up – igniting inflation and complicating rate-setting decisions.

Deepening US-China trade tensions is reshaping global trade flows, redirecting activity to alternate markets including India reshaping supply chain networks.

Amidst these developments, India remains optimistic about its long-term trajectory, with strong momentum in emerging technologies and sustainability.

The report highlighted that India’s ESG debt market is growing rapidly, with cumulative Green, Social, Sustainability (GSS) issuance reaching $56Bn by end-2024, signaling stronger investor appetite for green and sustainable projects.