New Delhi, July 24 (IANS) Businesses in India are increasingly leveraging AI, automation and green finance to drive innovation and strengthen operational resilience, supported domestically by structural tailwinds from one of the fastest-growing major economies, a report said on Thursday.

About 79 per cent of Indian CFOs and treasurers believe that Generative AI and AI-powered tools will help risk mitigation and enhance treasury operations, according to DBS-EY’s joint report.

According to the report, companies have started to plan for the long-term effects of a shifting global landscape.

“The new reality is increasingly being defined by uncertainty, and within this context, a discernible shift is underway for treasury and finance leaders who are not only strategic enablers for their companies, but also managers of business risk,” said Divyesh Dalal, Managing Director and Head–Global Transaction Services, DBS Bank India.

In India, 80 per cent of businesses affirmed that sustainable trade finance solutions like green bonds and Environmental, Social, and Governance (ESG)-linked loans will support green initiatives and compliance with green standards.

As the world looks to India to drive future growth, these leaders are assuming enhanced responsibilities as they step up to guide business diversification and linked capital allocation along with building resilient supply chains while keeping their overall institutional ESG principles in mind, Dalal added.

Globally, some 69 per cent of leaders said they are exploring Gen AI-powered solutions to optimise inventory forecasting, overcome prolonged receivables collection periods and improve cash conversion cycles, the report noted.

The report was prepared based on input from 800 finance leaders, including Chief Financial Officers (CFOs) and corporate treasurers, across seven sectors and 14 markets.

Enabling green initiatives and ensuring compliance with sustainability standards remained a priority for half of respondents.

Companies said they were considering various approaches to advance sustainability, including using digital tools to enhance the rigour of ESG reporting (77 per cent of respondents), partnerships with ESG ecosystem networks (64 per cent) and sustainable trade finance solutions (63 per cent), the report highlighted.

According to the report, approximately 50 per cent of finance leaders said supply chain reconfiguration continued to be a priority to diversify and strengthen their manufacturing footprint to be closer to customers across regions.

“Businesses are grappling with the confluence of several larger trends which are accelerating simultaneously – the ubiquity of AI, climate change, geopolitical uncertainty and evolving trade complexities,” said Santanu Mitra, Managing Director and Country Head–Corporate Banking, DBS Bank India.

–IANS

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