This blog explains how FP&A can utilise Artificial Intelligence (AI) to make a data-driven forecast of Account Receivables by examining historical invoices and payment data.
To bring some perspective to this position of AI within the context of FP&A activities, the FP&A Trends Group recently conducted research examining how artificial intelligence (AI) and machine learning (ML) were being used within the profession. They carried out interviews with thought leaders and academic professionals and examined case studies of organizations that were using AI and ML successfully.
This paper is a result of that research, looking specifically at how, when combined with human intelligence, AI can transform the role of FP&A.
Today’s uncertain times mean that it is no longer good enough for organizations to have one fixed plan and forecast. Historic data by itself cannot help predict the future, nor can classical planning methods and standard variance analysis provide sufficient information to manage a business. It is time to change and adopt a fact-based mindset towards business decisions.
There has never been greater uncertainty and a faster pace of change than over the past months.
And yet, at a time that requires speed and agility, and in a function that needs these qualities more than others, we cleave to our traditional management accounting methods and adhere to our longstanding processes.
Technology is beginning to impact profoundly on forecast accuracy.
Watch the full recording of the FP&A Trends Webinar to look at the examples of Predictive Analytics in FP&A and understand how we can implement the process for the benefit of the whole organisation.