The rise of AI in corporate FX risk management
This article is a contribution from our content partner, MillTech Traditional FX risk management processes are often manual, time-consuming and reliant on outdated tools—making it harder for corporates to respond quickly and efficiently in today’s volatile markets. It’s little wonder, then, that all respondents in our recent North American and UK corporate FX surveys said they are exploring the use of AI in some capacity to improve both operations and decision-making. In this blog, we take a closer look at how corporates across both regions are starting to adopt AI to reduce their reliance on resource-heavy manual tasks, and move towards more intelligent, tech-driven FX solutions. AI as a strategic tool for FX risk management AI is rapidly becoming a strategic priority for corporates on both sides of the Atlantic—especially as firms search for smarter ways to navigate currency volatility. Faced with ongoing geopolitical tensions, diverging monetary policies and a backdrop of macroeconomic challenges, FX risk management is naturally emerging as a key area of interest for innovative technologies. Corporates are beginning to take action: While these numbers reflect consideration rather than full-scale adoption, they signal a clear shift: AI is moving from theory to strategy in the world of corporate treasury. Commenting on the trend, Sam Hunt, CTO at MillTech, affirms: “The genie is well and truly out of the bottle with generative AI and any organisation not thinking about how this technology can enhance their offering risks being left behind. It’s clear from the findings that CFOs realise that in today’s fast-paced digital landscape, embracing AI-driven innovation is no longer optional but essential for staying competitive.” Early-stage exploration beyond risk management Building on this momentum, process automation and FX operations are also emerging as key areas of AI exploration among corporates in both North America and the UK: Together, these trends point to a broader shift: corporates are not only recognising the strategic value of AI, but actively seeking ways to embed it across their FX management strategy. AI use cases in FX According to Justin Xu, Head of Quant and AI Strategy at MillTech, AI is unlocking new levels of precision and control in currency management. Predictive analytics for FX risk management Machine learning algorithms analyse diverse source of information, including historical price movements, macroeconomic indicators, and central bank policies, to predict the direction and magnitude of currency market risks. These insights enable CFOs and treasurers to make more informed hedging decisions, minimizing exposure to currency risk. Natural language processing (NLP) for sentiment analysis NLP-powered AI models process news articles, central bank statements, and social media sentiment to assess market conditions. By extracting insights from both structured and unstructured data sources, corporates can more effectively manage event-related currency risks, thereby gaining a competitive edge in FX risk management decisions. AI-powered process automation Many FX-related tasks, such as trade reconciliation, compliance reporting, and KYC/AML processes, are time-consuming and prone to human error. AI-driven automation tools can help to streamline these workflows, reducing manual effort and improving accuracy. Looking ahead: What’s shaping the future of FX? When it comes to the future of FX operations, corporates on both sides of the Atlantic are placing their bets on emerging technologies—but not always in the same order. In North America, corporates are most optimistic about the impact of automation and data-driven tools, with notable interest in several other technologies: In the UK, corporates are leaning more heavily into blockchain and AI-led transformation: While AI is a consistent theme across regions, the variation in top priorities likely reflects differences in market maturity, regulatory environments and innovation appetite. What’s clear, however, is that FX functions are entering a transformative era—where advanced technologies are shifting from experimental to everyday use in FX strategies. Reimagining FX with AI: Inside MillTech’s next-gen approach At MillTech, we’re applying AI in practical, targeted ways to streamline processes and improve efficiency across the business and for our clients. Smarter compliance through document intelligence To ease the burden of regulatory onboarding, we’ve developed a generative AI solution that accelerates KYC and AML processes with our 15 counterparty banks. By extracting key information from complex legal documents, this tool significantly reduces manual effort and improves accuracy, transforming what was once a time-consuming task into a streamlined workflow. Empowering developers with AI-Driven code search Internally, we’re using generative AI to supercharge our development process. Rather than relying on outdated or scattered documentation, we use generative AI to let developers query the codebase directly, allowing them to retrieve accurate, context-aware answers, saving valuable time. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in Treasury Management or those interested in learning more about various topics related to Treasury Management, including Cash Management, Foreign Exchange Management, and Payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
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De-Dollarisation: Why Treasurers Can’t Ignore the Shift (And How to Build a Hedging Strategy That Survives It)
From Treasury Masterminds Every few years, the financial world picks a new buzzword to obsess over. This time it isn’t AI, blockchain or some other magic toy. It’s de-dollarisation. And unlike most corporate folklore, this one actually matters for treasury teams. The US dollar still rules global trade, sure, but its grip isn’t quite what it used to be. Its share of global reserves has slipped 60%, new regional payment rails are emerging, and multinationals are finding themselves invoiced in currencies they didn’t even bother to hedge ten years ago. In other words, treasurers are waking up to a world where FX isn’t a two-currency conversation anymore. What This Means in Real Life This shift isn’t just theory for economists who enjoy writing 200-page papers no one reads. It shows up in the basics: how you price contracts, negotiate payment terms, structure hedges, and manage liquidity across multiple markets. You’re navigating: And through all of that, you’re still expected to keep earnings predictable. Lucky you. Why You Need a Better Hedging Playbook A multipolar currency system doesn’t kill the dollar. It just forces corporates to be smarter. You need a hedging framework that covers more than EUR-USD and a prayer. That means: Companies already transacting outside USD are learning fast. They’re refining execution strategies, diversifying currency pairs, and using digital tools to make cross-border flows faster, cheaper, and more transparent. Treasurers who cling to old assumptions about the dollar? They’re already behind. A Webinar Designed to Help You Catch Up To make sure you’re not one of those treasurers still stuck in 2015, Treasury Masterminds is teaming up with Ebury for a live 45-minute session built around one simple goal: helping you design a hedging strategy that actually works in a de-dollarising world. You’ll learn: You’ll also walk away with Ebury’s Looking Beyond the Dollar playbook, because sometimes even treasurers deserve free gifts. Who Should Join? If your job includes anything like “treasury,” “liquidity,” “hedging,” “FX,” “working capital,” or “trying to sleep despite currency volatility,” this session is for you. That includes: Meet the Speakers If you want your hedging strategy to survive the next stage of global realignment, join us on 11 December 2025 at 11:00 CET. Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.