How can working capital be optimized with predictive AI/ML?
                     How can working capital be optimized with predictive AI/ML? 
Working capital management ensures that the firm has sufficient liquidity to run 
its operations smoothly. It is crucial for any company since it is the daily, 
weekly, and monthly cash requirement for its operations. 
  
We've reached a new era in business, one in which guessing is no longer 
acceptable. The advent of AI-powered process mining technology has 
revolutionized the concept of data-driven decision-making. Corporate treasury 
teams are empowered to break from patterns they may not have been aware of 
previously and foresee threats and risk events before they occur, which are 
based on data-based insights rather than emotions and guesses.  
  
Every business needs a solid and exceptionally well-working capital 
management strategy that takes numerous circumstances into account. This 
impacts a company's creditworthiness and financial health. trade and Supply 
chain finance helps businesses optimize their working capital and monetize via 
the supply chain ecosystem. Through this, working capital can be optimized, 
financial ratios and cash flows will be improved, and more economic value 
could be released from the ecosystem.. For example, a buyer-led supply chain 
finance program can help the anchor buyer with increased liquidity and DPO. In 
the meanwhile, such a program can help the suppliers with improved cash flow 
and accelerated collections on the receivables.  
  
Supply chain finance also plays a significant role in improving liquidity 
available to MSMEs. SCF programs provide consistent and cost-effective 
sources of liquidity to suppliers, can be accessed at any time, and help to keep 
credit lines open. This is due to the credit assessment on the large buyers instead 
of MSME suppliers. 
  
With artificial intelligence, working capital management solutions can be more 
enhanced, well planned and resilient. AI/ML becomes more widely used for the 
following scenarios: : 
  
1) Uncover new business opportunities from the network. 
2) Prevent payment delays and manage cash flows better. 
3) Better manage inventory and business infrastructure expansion. 
4) Minimize unexpected and unforeseen expenses. 
5) Avoid firms from scurrying for last-minute bank funding to guarantee they 
have enough cash on hand, reducing treasury stress and employee churn. 
6) Increased profitability and overall efficiency of the company 
7) Providing better insights into the actual financial state of the company. 
  
We are living in a world where artificial intelligence plays a critical role in 
detecting bottlenecks, inefficiencies, and opportunities in a company's financial 
processes. Every company can easily adapt this technology via a FinTech that 
can help manage its working capital with predictive AI/ML techniques, which 
helps a company's long-term financial health. It ensures that sufficient cash flow 
is available to fund the working capital, and that the ecosystem is resilient. This 
leads to minimal process friction and optimized working capital to ensure your 
business always does more with less.