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The Power of AI in Financial Planning and Forecasting
Article

The Power of AI in Financial Planning and Forecasting

Aaron Arnoldsen, Mike Beyer, Hardik Sheth, Michael Demyttenaere, Anna Oberauer, Shervin Khodabandeh and Rajesh Yanamandra
Boston Consulting Group, 2024
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Recommendation

Many CFOs are weighed down by cumbersome, rigid approaches to budgeting, financial planning, and forecasting. CFOs who leverage the potential of AI systems to “turbocharge” these processes can dramatically boost productivity while benefiting from more accurate predictions. Gain insights to help your firm navigate its digital transformation, and gain a broad view of the steps you must take to embrace “dynamic steering,” harnessing powerful algorithms, driver-based calculations, and data automation to ensure your firm stays competitive, as new technologies disrupt nearly every sector.

Summary

CFOs who leverage AI insights can “turbocharge” planning and forecasting.

At many companies, financial planning, budget creation, and forecasting processes can be sluggish, manual, and inflexible. Sometimes, creating an annual strategy can even take several months, which means planning does not reflect real-time data, making organizations less agile and adaptive. AI systems can “turbocharge” firms’ planning and forecasting processes, helping companies become faster and more responsive, while making predictions more accurate.

Organizations that leverage a process known as “dynamic steering” integrate powerful AI and machine-learning algorithms, driver-based calculation, and data automation to accomplish the following: run multiple potential scenarios simultaneously; improve the accuracy of financial predictions...

About the Authors

Aaron Arnoldsen, Mike Beyer, Hardik Sheth, Michael Demyttenaere, Anna Oberauer, Shervin Khodabandeh, and Rajesh Yanamandra are professionals with Boston Consulting Group.

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