AI Model Evaluations Explained for FP&A

In FP&A leveraging advanced AI models can really improve how financial data is analyzed, forecasts are made, and decisions are supported.

However, understanding which AI model is best suited for your specific needs requires a grasp of various model evaluations.

Large Language Models (LLMs) — tools like ChatGPT or LLama 3.1 are one of the applications of AI for FP&A.

And whenever a new LLM is launched there is always this “Evaluation Comparison:

But what exactly all of these acronyms mean?

Here is a table I created to quickly understand them and below in the article I will explain a bit more of each one:

The Importance of AI Model Evaluations

AI model evaluations are crucial as they provide standardized metrics to compare different models’ performance across various tasks.