CFOs are increasingly tempted by a DIY approach to treasury management, using tools like ChatGPT to build better Excel models.

While this option seems cost-effective and efficient, it often leads to operational challenges within 18-24 months. Here’s why relying solely on AI-enhanced spreadsheets might not be the best choice and how professional treasury platforms provide better long-term value.

The Risks of AI-Enhanced Spreadsheets

AI-enhanced spreadsheets may seem like a smart move at first, but they come with hidden risks that can disrupt operations over time.

• Increased manual effort: Teams spend hours managing data uploads, troubleshooting errors, and coordinating version control across multiple files.
• Error-prone models: AI tools can generate incorrect projections. For instance, a treasury team might find that their AI-enhanced spreadsheet has generated cash flow overestimations, leading to significant financial risks.
• Compliance challenges: Copying sensitive data into AI tools can breach data governance policies. Incomplete audit trails and unvalidated AI outputs pose regulatory risks.
• Scalability issues: Spreadsheet models struggle with growing complexity, such as multi-currency operations, numerous bank accounts, or high transaction volumes.

What Professional Treasury Platforms Offer

Purpose-built treasury platforms integrate AI more effectively than consumer tools like ChatGPT. These platforms are designed specifically for treasury functions, offering:

• Direct data integration: Work with your data securely without manual uploads to external tools.
• Transparent processes: Algorithms tailored for treasury provide clear audit trails and reliable calculations.
• Real-time forecasting: Eliminate delays by producing continuous, updated forecasts instead of spending days creating cash flow models.
• Robust scalability: Handle enterprise-level complexity, such as global operations involving multiple entities and currencies.

Time Savings and Efficiency Gains

The difference in efficiency between spreadsheets and professional platforms is significant. Here’s a breakdown:

• Before professional software: Teams typically spend 40 hours per week on manual tasks like data compilation, error troubleshooting, and version control.
• After implementation: Weekly time spent drops to just four hours, allowing treasury teams to focus on strategic analysis and value-added activities.

The Hidden Costs of AI-Enhanced Spreadsheets

While spreadsheets may have low subscription costs, the hidden expenses far outweigh the perceived savings:

• Manual processing: Lost time and productivity managing spreadsheets and AI tools.
• Error correction: Fixing mistakes caused by AI inaccuracies.
• Compliance failures: Regulatory penalties and audit failures due to incomplete controls and documentation.
• Missed opportunities: Time spent on administrative tasks rather than strategic initiatives.

For a five-person treasury team, these hidden costs can exceed $400,000 annually.

The Four Stages of Spreadsheet-Based Treasury Management

Organizations using AI-enhanced spreadsheets often follow a predictable pattern:

1. Honeymoon phase (3-6 months): Teams see quick wins with faster models and initial savings.
2. Reality phase (6-12 months): Limitations emerge as errors, compliance issues, and complexity grow.
3. Crisis phase (12-18 months): A major mistake or compliance issue forces action, such as an audit failure or forecasting error.
4. Professional phase (18+ months): Investment in purpose-built treasury platforms becomes unavoidable.

This timeline wastes valuable time and resources. Starting with professional software from the beginning avoids these setbacks and delivers long-term advantages.

Why CFOs Should Act Now

Delaying the move to professional treasury platforms increases risks and costs. By investing in institutional-grade software early, organizations gain:

• Enhanced efficiency: Automate processes and reduce errors tied to manual workflows.
• Scalability: Seamlessly handle growth, from additional bank accounts to global operations.
• Stronger compliance: Implement robust audit trails, role-based access controls, and automated regulatory reporting.
• Strategic value: Shift treasury from a reactive cost center to a proactive strategic partner.

Conclusion: The Cost of Waiting

AI-enhanced spreadsheets may seem like a quick fix, but they create more problems than they solve. Purpose-built treasury AI  provides the expertise, scalability, and compliance capabilities that spreadsheets lack.

CFOs face a critical choice: invest proactively in the right systems now or risk forced changes later due to operational failures. With institutional-grade treasury platforms, organizations can achieve operational excellence, improve financial performance, and gain a long-term strategic advantage.

Schedule a demo with our team of experts today to learn how Ripple Treasury’s purpose-built treasury AI can boost your organization’s AI goals.