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). 

FP&A analytical transformation has been dominating headlines for some time. In the last decade, finance, and FP&A in particular, embarked on a journey from descriptive to prescriptive analytics. True digital transformation integrates technology, data, and new processes across the entire corporation.

The First Digital North America FP&A Board meeting took place on September 17, 2020 to discuss the digital transformation and how FP&A is moving from a traditional to a leading stage.

‘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.

Today’s finance and accounting professionals face ever-growing challenges when it comes to data. The simplest analyses can be complicated by the wrong data or bad data and too much data can even be a problem. Effectively sourcing, managing, and using data are key skills.

The explosion in computing and data processing power has led to an exponential increase in data available to business. Paradoxically, this has led to business leaders becoming more uncertain about what to do with this data. Hence, business is scrambling to put the appropriate “analytics” capability in place. This generates a lot of friction and tension because business leaders and managers, who have been brought up in a very different world, have to scramble to learn new languages and redress their relationship with data.