Micron Technology Inc.’s cash deposits are generating millions of dollars in additional returns for the memory-chip maker thanks to the help of an artificial-intelligence tool developed internally.
The AI application allows Boise, Idaho-based Micron to invest its funds so they generate higher returns in the current low-interest-rate environment, which worries many finance chiefs across industries.
The technology gives Micron recommendations for different asset classes and financial institutions that promise the highest yield. It takes into consideration the company’s limits for the amounts of money it can deposit with a particular institution or invest in a certain type of asset. Micron, which makes memory chips and storage devices for things ranging from cars to data centers, has relationships with more than 20 banks globally.
AI tools that guide companies’ cash-management decisions are relatively rare, according to Pete Gilchrist, executive vice president for retail deposits and commercial banking at Novantas, an advisory firm. Such tools can make it harder for banks to predict customer behavior, such as how much money companies plan to keep in their accounts, Mr. Gilchrist said.