The potential of AI and predictive planning to enhance forecast accuracy

he number one topic of 2025 is highly likely to be continuous improvements in artificial intelligence (AI) and how it will shape the future of our industries. In FP&A specifically, there are unprecedented opportunities for accuracy and efficiency if the potential of the technology is fulfilled.

By integrating AI-driven predictive planning, organisations can automate repetitive tasks, uncover actionable insights, and adapt to rapidly changing market conditions. This shift is not just about doing more with less but about making smarter, data-driven decisions that position businesses for success in uncertain environments.

Let’s dig into what all of this means.

What is predictive planning?

Predictive planning leverages AI and statistical models to generate forecasts based on historical and real-time data. Unlike traditional planning methods, which rely heavily on manual processes and past trends, predictive planning uses advanced algorithms to analyse vast datasets, identify patterns, and deliver actionable predictions.

The value proposition of predictive planning is clear: faster, more accurate predictions with minimal manual intervention. This allows finance teams to focus on strategic activities rather than being bogged down by routine forecasting tasks.

Key technologies behind predictive planning

To get a better sense of how this technology can change things, it’s good to dig into some of the key capabilities that unlock advanced predictive planning.  There are three that stand out:

  • Machine learning. Machine learning algorithms identify patterns in historical and real-time data, continuously improving forecast precision. These models adapt to new information, ensuring forecasts remain relevant even as conditions evolve.
  • Natural language processing (NLP). NLP simplifies interaction with predictive tools by allowing users to query data in plain language. This enhances accessibility for non-technical stakeholders, enabling broader adoption across the organisation.
  • Anomaly detection. AI systems can flag outliers and potential errors in data, ensuring forecasts are based on clean, reliable inputs. This proactive approach minimises the risk of flawed decision-making due to inaccurate data.

The combination of these could become a powerful generalised force that changes how we think about FP&A and the companies that embrace it will find themselves more agile, more efficient, and more data-driven.

Unpacking the benefits of AI in predictive planning

AI-driven predictive planning could offer several advantages that go beyond the capabilities of traditional methods, namely:

  • Improved forecast accuracy. AI algorithms can process vast quantities of structured and unstructured data, uncovering trends and anomalies that human analysts might overlook. This leads to greater precision in forecasts and an enhanced ability to predict outcomes in volatile or uncertain markets.
  • Time savings. Sophisticated automation can eliminate repetitive tasks like data aggregation and basic analysis. Finance teams can therefore reduce the time required to produce forecasts and updates and allocate more time to value-added activities such as strategy development.
  • Scenario modelling. Predictive planning enables organisations to simulate multiple scenarios, including best, worst, and base cases. This empowers businesses to prepare for a range of potential outcomes and develop contingency plans to mitigate risks and seize opportunities.

Excitingly, these barely scratch the surface of what might be possible if the technology continues to evolve. Truthfully, none of us really know what an AI-first world will look like, but what is for sure is that there will be a lot of change.

Challenges and considerations

While predictive planning can offer significant benefits, it also comes with various challenges that organisations must address. These will evolve with time and so it will require a process of continual evaluation and improvement.

  • Data privacy and security. AI relies on vast amounts of data, which raises concerns about privacy and compliance. Organisations must adhere to data protection regulations and implement robust security measures to safeguard sensitive information. This will become even more important as more and more social conversation surrounds the implications of this technology for greater society.
  • Trust in AI outputs. Scepticism about the accuracy and reliability of AI-generated forecasts can hinder adoption, and in the early days that will probably be justified. For such a new technology, companies should be cautious and not overestimate its capabilities too soon. Therefore, to build trust over the long term it is worthwhile to provide as much transparency as possible into the predictive planning process and even offer training to help users interpret and apply AI insights effectively.
  • Skill gaps. Predictive planning requires new skills, such as understanding AI models and interpreting advanced analytics. Companies should therefore invest in training programs for their in-house finance teams and even consider hiring or upskilling new talent with expertise in data science and AI. The application of these skills will make a big difference to the overall success of the implementation.

Here at Apliqo, we’re thinking deeply about the path forward and will be working with our clients to navigate these challenges and apply our minds thoughtfully to the key considerations that matter. This might just represent a new era for FP&A more generally and we’re determined to be on the front foot wherever we can. 

Unlocking strategic opportunities with predictive planning

AI-driven predictive planning is set to revolutionise FP&A by enhancing accuracy, saving time, and enabling better scenario planning. As organisations navigate an increasingly complex and volatile business environment, adopting predictive technologies will no longer be optional, it will become essential. By starting with clean data, setting clear objectives, and embracing cutting-edge tools, businesses can unlock the full potential of AI in planning.

The future of FP&A lies in harnessing AI to not only predict outcomes but also shape strategic decisions with confidence. Apliqo is are ready to walk this journey with you. Get in touch today to discover how we can help.

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