**London**: A recent HSBC report shows that 61% of finance leaders now view AI as crucial for decision-making in payments. Despite the optimism, a gap exists in businesses’ readiness to adopt AI solutions, highlighting the need for updated infrastructures and partnerships for effective implementation.
A recent report titled “Navigating the AI Wave: Innovations in Commercial Payments,” released by HSBC in partnership with Accenture, reveals significant expectations among finance leaders regarding the integration of artificial intelligence (AI) in risk management within the payments sector. The report indicates that 61% of finance leaders anticipate AI will be very or extremely useful in their decision-making processes, an increase from 38% in previous assessments.
The integration of AI is shifting from merely automating routine tasks to addressing more complex challenges within treasury and payment systems. Among the identified pain points that AI aims to alleviate are client servicing issues, streamlined payment processing, real-time data generation, and enhanced fraud prevention measures.
Manish Kohli, Head of Global Payments Solutions at HSBC, commented on the current landscape by stating, “We have been seeing an acceleration of innovation in payments and treasury functions in recent years, and HSBC has been actively investing in AI technologies to create value for our clients. We are navigating the AI journey together with them, exchanging insights and best practices to drive forward innovation and operational efficiency.” This statement highlights HSBC’s initiative to leverage AI tools for the benefit of their clients in navigating evolving challenges in the financial landscape.
Despite the noted advantages, the report points out a significant gap between businesses’ needs and their readiness to implement AI solutions effectively. Many organisations find themselves hindered by outdated architecture and infrastructure, preventing them from fully harnessing AI’s potential in payments and treasury functions. To address this gap, businesses are increasingly seeking assistance from banking partners and technology firms to develop custom AI tools that can meet their specific treasury requirements.
HSBC’s proprietary AI model, FX Prompt, is cited as a notable innovation designed to enhance client visibility and control over foreign exchange transactions, particularly in the context of cross-border payments. Such advancements underscore the bank’s commitment to improving client experiences and operational efficiency through tailored AI solutions.
The report recommends that organisations invest in infrastructures that allow seamless data integration, thereby ensuring they have reliable data for informed decision-making. Additionally, it suggests establishing governance frameworks to manage the risks associated with AI adoption and forming partnerships with technology providers, banks, and consultants to create bespoke AI solutions for treasury operations.
Amit Mallick, Accenture’s European Digital Payments Lead, expressed optimism about the future landscape of commercial payments, stating, “We are now looking at a payments ecosystem where fraud cases are easier to identify and manage, transactions happen in real-time across the globe, and every business, no matter the size, has access to cutting-edge financial tools. That’s the future AI is making possible — transforming commercial payments from routine processes into intelligent, data-driven interactions, enhancing efficiency, risk management, cybersecurity, and personalization.”
The report, “Navigating the AI Wave: Innovations in Commercial Payments,” represents the inaugural study in a new AI-focused series by HSBC, aiming to stimulate discussions around practical applications of AI within the domain of commercial payments. Interested stakeholders can access the full report for download on the HSBC website.
Source: Noah Wire Services
Subscribe to Industry Updates
