Dubbed, Cash Flow Intelligence, the artificial intelligence (AI)-aided cashflow management tool launched by the largest US bank, JPMorgan Chase & Co. has helped some of its corporate clients vastly reduce their manual work by nearly 90%, as was reported last week by Bloomberg.

Tony Wimmer, head of data and analytics at JPMorgan's wholesale payments unit, said in an interview to Bloomberg: “We are going to keep investing into this solution because we see that we’re starting to really crack this workflow.” He observed that since the AI tool was introduced about a year ago, approximately 2,500 JPMorgan corporate customers are currently using the product for free.

The cash flow management tool referred to as an “intuitive AI interface” on JPMorgan’s analytics and insights solutions page, allows corporate treasuries to analyse their cash flows, helping them sort, categorise, create and forecast in seconds.

Wimmer mentioned that while the AI tool has garnered “tremendous” interest from JPMorgan’s clients, who presently utilise it at no cost, the banking giant is contemplating charging its customers in the near future to use the solution.

"Cashflow forecasting is very complex and you need a lot of judgment," Wimmer told Bloomberg.

Although JPMorgan’s AI-driven software has assisted some enterprise customers in significantly decreasing their manual labour by up to 90% in categorising and visualising payment flows, the decision-making regarding managing liquidity still rests with humans.

Wimmer, leading a team of 250-300 people that includes data scientists and data engineers, is confident that “Component of machines enhanced by humans will not go away for a long time.”

JPMorgan’s CEO Jamie Dimon, has been bullish on the benefits of AI, particularly in improving productivity, reducing costs, and enabling shorter workweeks. In October 2023, Dimon predicted that the next generation will probably be working 3.5 days a week due to advancements in AI technology.

Last November, the American multinational financial institution revealed that AI tools had already started generating revenue and had set a goal of realising US$1.5 billion in business value with AI by the end of 2023.

The world’s major banks, including Bank of America, are also accelerating adoption of similar AI tools with the aim of increasing efficiency, productivity, decision-making, and reducing operational costs.

Furthermore, such AI-enabled tools help corporate treasuries take a closer look at cash flow forecasting to facilitate more accurate cash flow predictions and leverage payments data for business growth and revenue generation.

For corporates and their treasury departments, this is exciting news. The way they think about cashflow intelligence and patterns is changing, and thanks to the prudent use of AI-driven cash flow management tools, they can integrate AI into their systems to automate forecasting and make smarter business moves.