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Making faster decisions with AI Logo cgma

  Richard N Williams |   Free |   CGMA |   Feb 2019 |   FM magazine

The analysis of data using increasingly sophisticated tools can produce huge advantages. This article considers the use AI to answer three questions: what’s current performance, the reasons for performing in this way and how can it be improved. It lists four objectives of financial management analytics with value creation as the most important.

Topics covered:
  • Management accounting: Technical: Business planning: Planning, forecasting & budgeting, Advanced

2 Comments/Reflections

Ruth Falkus

Ruth Falkus Jun 2019

I felt there was nothing fundamentally new here.  Financial data has always required operations data or external data trends to make sense of the results.  The experienced management accountant should always be looking for the why, seeking out third party information.  This is required to assess if you have an internal or external issue/advantage, only by understanding the now can we hope to influence the next steps.
But what is new is the speed that can be achieved by using IA to enhance the process.  As we become more of a digital human the footprints of activity become easier/more readily available.  This is what IA allows us to take advantage of, but to use it effectively management accountants need to understand the fundamentals of where the information comes from to prevent that becoming the why for the "why did we get this wrong" in the future.
Richard Clark

Richard Clark Apr 2019

Shows the power of being able to drive business decisions within large amounts of data.

The key pull here is that the AI is programmed correctly to interpret data, but also that this underlying data is correct and is related correctly to form data sets.