APPLICATION OF ARTIFICIAL INTELLIGENCE IN CORPORATE FP&A

Artificial Intelligence (AI) is rapidly transforming corporate Financial Planning and Analysis (FP&A), enabling organisations to move beyond traditional, manual processes toward data-driven, proactive financial management. This research examines the impact of AI on four critical FP&A dimensions: forecasting accuracy, operational efficiency, decision-making quality, and overall financial performance. Using a descriptive and analytical research design, primary data were collected via structured questionnaires from 80 finance professionals across the IT, banking, manufacturing, and retail sectors in India. The study finds that AI adoption is strongly correlated with improved forecasting accuracy (r = 0.72), enhanced operational efficiency, and superior decision-making. Regression analysis further confirms that AI adoption significantly predicts financial performance (β = 0.58, p < 0.01). All four null hypotheses were rejected, supporting the transformative role of AI in FP&A. Despite the benefits, challenges such as data quality, implementation costs, and skill gaps continue to impede broader adoption. The study concludes that AI is a strategic imperative for finance functions seeking competitive advantage in the era of digital transformation, while calling for robust data governance, talent development, and a phased implementation approach.

Keywords: Artificial Intelligence, Financial Planning & Analysis, Machine Learning, Predictive Analytics, Corporate Finance, Digital Transformation