AI's innovative effect on treasury management

The treasury function has long been a cornerstone of business operations, responsible for managing liquidity, cash flow, risk and compliance. Historically, it was viewed as a back-office role that was necessary but often distant from strategic decision-making. That’s changing rapidly, and AI is at the heart of the transformation.

In the first episode of a four-part podcast series from the Leaders in Payments podcast, Yogaraj (Yogs) Jayaprakasam, Chief Technology and Digital Officer at Deluxe, explains how AI and intelligent automation revolutionizing treasury operations are empowering teams to become strategic advisors who drive growth and efficiency.

From utility to strategic enabler

When Jayaprakasam joined Deluxe three years ago, his mission was clear: Evolve the company’s technology from a utility that supports the business to a driver that defines it. In payments and data, technology is the product. With his leadership, Deluxe has modernized its platforms, building foundational capabilities in data, AI and APIs that power a range of innovations from mobile payment apps and receivables automation to advanced marketing solutions.

This transformation is more than internal; it’s shaping how Deluxe serves over 4,000 financial institutions and millions of small to mid-sized businesses across North America.

The expanding role of AI in treasury

AI has been part of treasury operations for years through statistical modeling and machine learning. What’s new, Jayaprakasam explains, is the leap forward brought by generative and agentic AI. Generative AI allows treasury professionals to interact with systems in natural language, asking questions and receiving tailored insights without needing deep technical expertise. Agentic AI takes this further by acting on defined strategies and executing actions such as hedging when conditions are met.

One immediate benefit is in document and image data extraction. AI-powered solutions at Deluxe have improved accuracy from about 65 to over 95 percent, reducing the need for manual reconciliation and freeing treasury staff to focus on higher-value analysis and decision-making.

Real-world impact

These advancements aren’t theoretical. Deluxe clients, such as McNaughton-McKay Electric Company, are already seeing measurable improvements in cash management and credit operations. From faster receivables processing to better forecasting, Deluxe is helping treasury teams deliver results that impact the bottom line.

Responsible AI adoption

With AI’s rapid growth, Jayaprakasam stresses the importance of responsible adoption. Deluxe follows strict data governance principles, using customer data only with explicit permission and tailoring AI models to individual clients rather than pooling data across organizations. This approach helps ensure trust, security and compliance which are all critical in the payments industry.

Preparing for what’s next

AI adoption may appear gradual in treasury, but the pace is accelerating. Jayaprakasam warns that what feels slow now will soon feel sudden. His advice:

• Invest in learning AI tools and prompt engineering.
• Blend the skills of AI-saavy new hires with the experience of seasoned professionals.
• Reimagine existing challenges like liquidity management or dispute resolution through the lens of AI.

He also recommends a “three by three” talent strategy: Train employees at beginner, intermediate and advanced levels across entry-level, mid-career and executive roles. This ensures that AI understanding is embedded at every layer of the organization.

As Jayaprakasam concludes, the problems treasury teams face aren’t changing, but the tools to solve them are. By embracing AI responsibly and strategically, treasury can move from the back office to the center of business innovation.