The podcast Unpacking the Future: How AI and ML Are Redefining FP&A hosted by Arthur Forbus discusses the impact of artificial intelligence (AI) and machine learning (ML) on financial planning and analysis (FP&A). Forbus is joined by Philip Parker, founder of Holland Parker, to explore how technology has transformed FP&A over the past decade and what the future holds. Parker highlights the shift from high-level forecasting and budgeting, which was traditionally done in spreadsheets, to more granular and real-time data processing, thanks to advancements in technology. Modern tools like AI and ML allow for more accurate and detailed forecasts, enabling organizations to process data faster and make more informed decisions.
The discussion focuses on how AI and ML are changing the way businesses approach financial analysis. AI, through tools like ChatGPT and OpenAI, has the potential to streamline processes, improve forecast accuracy, and even run continuous checks on financial models to detect anomalies. Machine learning models, in particular, can run around the clock, identifying trends or issues that might otherwise be missed by human analysts. However, both Forbus and Parker caution that AI and ML still require human oversight. While these technologies can generate valuable insights, trust in AI-driven decisions is not yet fully established. Organizations must remain vigilant, cross-referencing AI outputs with human judgment, especially when making critical financial decisions.
The conversation also touches on the challenges of adopting AI and ML in FP&A. Many companies are still figuring out how to integrate these technologies effectively. Philip Parker likens this stage to the early days of cloud adoption, where there was a learning curve and trust-building period. He recommends starting small with AI and ML implementations, perhaps focusing on a single line item or use case to assess the technology’s effectiveness before expanding its use. The podcast concludes with advice for finance professionals: staying curious and educating themselves on new technologies like AI and ML is essential for staying competitive in the evolving financial landscape.