Explore the use of AI modeling and ML to advance your business planning to the next level

One of the challenges that business leaders face is how to grow strategically in uncertain economic times. The pandemic has created a lot of uncertainty and volatility in the market, affecting the performance of many businesses. As the economy is reaching a critical point, executives are looking for proactive planning solutions that use AI modeling and machine learning technology.

However, a recent survey showed that only 16% of CFOs are using real-time economic data in their business planning. This is a lost opportunity, as these technologies can provide customized insights that combine a company's past performance data with real-time economic data. This allows executives to make financial projections with different scenarios, helping them to cope with volatility and capture opportunities.

Demand forecasting is the process of estimating the future demand for a product or service. Traditionally, demand forecasting relied only on a company's historical data, which can cause errors in predicting future performance. By using external economic data in the modeling process, executives can get a more accurate picture of business growth or contraction. For example, the years 2020 to 2022 were affected by supply chain disruptions and increased consumer spending due to government stimulus during the pandemic.

Without considering these economic factors, companies using traditional demand-forecasting methods may overestimate growth potential. Executives who have used AI modeling and ML have been able to make more precise predictions during the pandemic. For instance, retailers used this technology to anticipate supply chain normalization, avoiding inventory problems experienced by large retailers like Target and Walmart.

Predictive analytics is the process of using data and algorithms to forecast future outcomes and trends. Predictive analytics is not only useful for dealing with economic uncertainty, but also for making informed decisions by analyzing trends in sales, promotions, and audience behavior. This gives a competitive edge, enabling leaders to explore new strategies and approach challenges with confidence. Just as generative AI has shown its value in increasing productivity, artificial intelligence data modeling and financial planning can bring significant benefits. Businesses that use these technologies can move beyond reactive navigation of the market and take proactive steps towards growth and success. Whether it's expanding sales with existing customers or entering new markets, predictive planning allows leaders to make strategic decisions with certainty