AI has been heralded — and put to use — as a groundbreaking new tool that companies can use in the budgeting process. But even companies that have embraced AI are still struggling with aspects of the budgeting process in today’s complex and rapidly changing business environment.
Why is that? When does it make sense to rely on AI, and when does it not? In this article, the authors describe experiments they have conducted on the use of AI in the budgeting process — and conclude that AI can and should replace human managers in tactical tasks, where data-driven decision-making leads to faster and more efficient outcomes, but that in the strategic realm, where long-term planning, market adaptability, and business foresight are critical, human involvement and insight remain...