How to use AI and ML in FP&A?
With the rapid increase in the amount of data available, and the lowering barriers of entry there is huge potential for Artificial Intelligence (AI) and Machine Learning (ML) to transform the Financial Planning and Analysis (FP&A) industry.
Let’s start with, what is FP&A?
FP&A stands for Financial Planning and Analysis. It is a function within a company’s finance department that is responsible for partnering up with the business to do forecasting, budgeting, and analyzing the company’s financial performance.
This includes creating financial models, analyzing financial data, and providing insights and recommendations to management on how to improve the company’s financial performance. The goal of FP&A is to help management make informed decisions about the company’s financial future.
How to use AI and ML in FP&A?
There are several ways that artificial intelligence and machine learning can be used to improve FP&A operations:
- Forecasting: Machine learning algorithms coded in Python can be used to create more accurate financial forecasts by analyzing historical financial data and…
