How AI Is Transforming Financial Planning

You don't need more spreadsheets; you need faster, better choices under uncertainty. AI—especially generative AI—changes the speed and quality of FP&A work.

What's changing (and why it matters):

• Adoption is real. One-third of organizations report using gen-AI in at least one function; boards are discussing it. McKinsey & Company
• Time shifts to analysis. Automating mapping, anomaly detection, and commentary frees teams from manual prep. Benchmarks show today's time mix is still skewed to prep—so automation creates immediate lift. Accenture

A practitioner's workflow you can copy:

1. Ingest & classify. Let AI auto-map chart-of-accounts changes and vendor categories; flag anomalies for review (keeps your audit trail intact).
2. Explain variances. Natural-language variance analysis pulls the three real drivers behind the number (price, volume, mix) and suggests actions.
3. Scenario builder. Generate model variants (e.g., 10% demand shock, 2-pt churn uptick) and show KPI impacts and cash runway. Investopedia
4. Narrative reporting. Draft board-ready commentary with linked schedules; reviewers approve changes, not write from scratch.
5. Closed-loop planning. Push actions (hiring pause, vendor re-negotiation) to owners; track realized vs. forecast deltas in the next cycle.

Mini-case: In a growth business with lumpy usage revenue, AI-based seasonality detection trimmed MAPE (mean absolute percentage error) on top-line by ~3 pts and identified a pricing-leak cohort to fix. (Internal observation from pilots; results vary.)

Bottom line: AI doesn't replace FP&A judgment; it removes the drudgery so judgment shows up sooner.