Financial institutions are deploying AI in nearly all back-office functions and are showing improved efficiencies in operations. 

Deployment of AI within treasury management processes can improve efficiencies by up to 70%, freeing as much as 140 hours per month for teams to focus on strategic objectives instead of manual tasks, according to HSBC’s 2025 Global Treasury Pulse report published on Sept. 28. 

“AI builds on this by adding predictive capabilities that allow treasurers to anticipate cash needs and liquidity positions in real time,” Tom Halpin, head of global payments solutions, told FinAi News. “Cash flow forecasting — one of the least automated areas today — is where AI can add the greatest value, along with fraud detection and document analysis.”

The $3 trillion bank is seeing increased efficiencies of up to 70% after deploying AI for treasury functions, Halpin said. HSBC has deployed AI in its global payments solutions business for: 

• Transaction monitoring and anomaly detection to strengthen security and risk management; 

• Smart automation in reconciliation and operations to reduce manual intervention; 

• Optimized cross-currency payment workflows for greater efficiency; and 

• Client servicing to enhance response speed and quality, with humans always in the loop. 

During the third quarter, HSBC reported an organization wide efficiency ratio of 56.6%, worsening from 47.9% YoY due to a multi-year global restructuring program launched in 2022, according to the company’s Oct. 28 earnings report. 

The boon of gen AI 

While AI is already helping FIs become more efficient, gen AI takes it up a notch, Halpin said. 

Traditional AI focuses on pattern detection and prediction, while gen AI can synthesize insights and produce outputs in natural language or visual formats, making complex data more accessible, he said. 

“In treasury, gen AI can streamline reporting, scenario planning and communications, turning large datasets into actionable insights or forecasts,” Halpin said. “It can also enhance productivity through document summarization, report drafting and chat-based data analysis.” 

Nearly 71% of treasury managers expect 25% of their jobs to be automated with AI, Halpin said, adding that “automation will reshape, not reduce, the role of treasurers.” 

Treasurers are evolving from custodians of cash to strategic business partners, focusing on risk management, scenario planning and advisory functions, areas where judgment remains essential, he said. 

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