READ TIME: 5 MINUTES
Stop looking at FP&A as a back-office function
Gone are the days of simple XLOOKUP formulas.
Today, 85% of FP&A teams are using AI tools.
Companies report:
64% fewer errors
72% faster data processing.
62% better reporting accuracy.
Soon, FP&A will treat AI like coworkers.
Imagine a CFO using AI to predict risks, plan strategies, and even choose the best people for a project based on their skills and personalities.
Now think bigger:
AI has already planned 15 moves ahead. It’s analyzed every scenario, calculated every risk, and picked the best options. Whether it’s a supply chain crisis, market shift, or competitor move, AI has planned for it all.
FP&A isn’t numbers anymore.
No operational labor.
No outdated processes.
It’s about strategic impact.
FP&A can lead businesses into the future.
FP&A is your profit engine.
3 Reasons Why CFOs must Prepare
The Data Boom
By 2025, global data creation is expected to hit 181 zettabytes annually (IDC).
Companies are already using 85% more AI tools in FP&A to process not only structured financial data but also unstructured data like customer interactions and team meetings.
This data explosion can help FP&A teams uncover insights that were previously impossible to see.
Smarter AI
With OpenAI's Operator, the future looks even more promising. Operator automates web-based tasks like filling out forms, booking travel, or managing workflows. While its current focus is task-specific, its potential to evolve into a broader AI assistant for decision-making and collaboration could redefine how FP&A teams interact with technology. Operator is a glimpse into how AI will transition from task automation to becoming true partners in strategic processes.
Predictive models are already improving forecasting accuracy by up to 50% (McKinsey), reducing uncertainty in decision-making.
Real-Time Decision-Making
Companies like Netflix are setting new standards with real-time data. By leveraging AI to analyze trends, Netflix adjusts strategies 30% faster than competitors.
Walmart uses live dashboards to monitor inventory across thousands of stores, responding to demand spikes 40% faster.
FP&A teams that adapt to real-time data will make faster, smarter decisions.
Why Traditional FP&A is Failing
Static budgets and quarterly updates no longer work.
Here’s why:
Markets Move in Real-Time:
Netflix adjusts strategies 30% faster with real-time data. Companies stuck in slow cycles can’t compete.Customer Expectations are Changing:
Amazon’s ability to adjust prices and inventory instantly has set a new standard. Customers demand agility that outdated processes can’t deliver.Competition is Tough:
With 42% of businesses significantly investing in AI this year, falling behind isn’t an option. Tesla’s predictive analytics optimize production, leaving competitors scrambling to keep up.Let’s Be Clear:
Excel is great for ad-hoc analysis, but when it comes to scaling FP&A (real-time data, cross-team collaboration, AI-driven forecasts), it becomes a bottleneck. Go for FP&A tools that solve this without forcing you to leave Excel.
5 Things FP&A Must Focus On
Dynamic Forecasting
Rolling Forecasts: Keep your plans updated with real-time data. Companies using rolling forecasts perform better than those with annual plans (Deloitte).
Scenario Simulations: Use AI to predict risks and opportunities. BP uses this to stay ahead in volatile markets.
Collaboration
Break the Silos: Work with teams like sales, marketing, and operations. Procter & Gamble’s FP&A team partners with marketing to improve ad spend ROI.
Influence the C-Suite: Be a strategic partner, not just a reporter. Microsoft’s FP&A team helps shape big investment decisions.
Real-Time Decision-Making
Use Live Dashboards: Act fast on real-time data. Walmart uses dashboards to adjust inventory quickly, saving time and money.
Predictive Insights: Use AI to see what’s coming. Starbucks uses predictive analytics to forecast demand and cut waste.
Storytelling
Turn Data Into Action: Don’t just show numbers—tell a story. Present insights in a way that drives decisions.
Be Clear and Persuasive: Help leaders understand the big picture with simple, actionable recommendations.
Personal Growth
Learn AI Tools: Build skills in advanced analytics and data tools.
Work Across Teams: Collaborate with other departments to solve problems together.
Adapt and Innovate: Stay ahead of the curve as AI and tools keep evolving.
How Companies Are Using AI for FP&A
IBM: Reduced forecasting errors by 50% using AI for data analysis, enabling smarter product launches.
PwC: Uses AI scenario planning tools to help clients in retail and manufacturing navigate economic disruptions.
General Electric: Automates anomaly detection with AI, improving budgeting and forecasting accuracy.
Siemens: Enhances cash flow management with predictive analytics, optimizing working capital and planning during uncertainty.
Netflix: Leverages real-time viewer data to predict behavior and optimize content production, maintaining market leadership.
Why This Matters To CFOs
President Trump recently announced a $500 billion investment in AI infrastructure, led by OpenAI, SoftBank, MGX and Oracle, with key technology partners Microsoft, NVIDIA, and Arm.
This project, called Stargate, will:
Build 20 huge data centers across the U.S.
Create over 100,000 new jobs in AI and tech.
Help the U.S. stay ahead of global competition in AI.
This investment will give FP&A access to more powerful tools and faster technology, making it easier to predict risks, analyze data, and help companies grow.
AI tools like predictive analytics can improve forecasting accuracy by up to 50%.
That’s not just faster decisions. It’s better ones.
CFOs Rely on FP&A To Deliver Value
FP&A can’t afford to sit on the sidelines as a support function.
You must make decisions, predict outcomes, and act as a catalyst for growth.
Here’s how to get started:
Fix Your Data First
AI is only as smart as the data you feed it. Ensure your systems are capturing reliable, accurate information. Messy data = messy results.Start Collecting More Data
Financial data alone isn’t enough. Record meetings, track customer interactions, and gather insights across teams. AI thrives on diverse data.Collaborate Across Teams
Partner with sales, marketing, and operations. The more connected your teams are, the more valuable your data becomes.Hire and Train AI-Savvy People
Build a team of data scientists and FP&A professionals who know how to use AI tools to solve real-world problems.Encourage Innovation
Host hackathons or pilot AI projects. These initiatives foster creativity and uncover new opportunities for growth.
Sentient AI
AI that understands emotions and thinks like a person is not far away.
It will:
Navigate complex ethical challenges.
Build perfect teams based on personality and skills.
Handle tricky leadership decisions with emotional intelligence.
But it raises questions:
Can AI take over leadership roles?
How do we define trust and responsibility in a world where AI makes critical decisions?
The Bottom Line
FP&A is not about XLOOKUP and INDEX MATCH.
FP&A is about leading the future of business.
Start looking at FP&A as a profit engine.
Invest in data, innovation, and AI.
Talk to your CFO, CRO, CMO and COO. Get Data.
AI won't be able to do smart things without data to learn from.
This is just the beginning.
And that’s all for this week.
Share it ♻️ if you appreciate the lessons and effort.
I’m Wouter Born. A CFOTech investor, advisor and entrepreneur.
Find me on LinkedIn
P.S. Read Strong accounting → Better FP&A
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