In today’s world, companies need more than ever fast insights to make the appropriate critical moves. Unfortunately, current BI tools through dashboards report ‘what’ happened and does not help to understand the ‘why’.

Computer simulations allow us to play out various scenarios repeatedly and assess the outcomes. It is also true for computer simulations that are used in finance. Through scenario analysis, we can gain some comfort and assurance that the decision taken is the right one given the circumstances. However, there are a few considerations with the use of artificial intelligence (AI). 

While automation has eliminated many repetitive tasks, the next step for FP&A is to develop advanced analytics capabilities.

We are entering the era of digital FP&A where human and artificial intelligence work hand in hand to achieve better analytical results.

‘If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes’, said Albert Einstein.

The modern Financial Planning and Analysis (FP&A) function has an important role to play in enhancing decisions through the power of predictive analytics and driver-based modelling.