Expert Q&A: AI And The Future of FP&A Software

AI is changing the game for financial planning and analysis (FP&A), turning what was once a tedious, manual process into a strategic advantage. In a recent Expert Q&A session, Andrew Fear, VP of Marketing at Centage, and Kate Drenckhahn, Senior Product Manager, dove into the impact AI is having on FP&A, sharing how finance teams can leverage it to streamline operations, improve accuracy, and drive better outcomes.

Watch the full conversation below to learn more about how AI is transforming FP&A:

The Big Challenge: Big Data and Misalignment

FP&A professionals are facing unprecedented challenges as the volume of data continues to grow exponentially. Managing this data effectively is critical, but outdated tools and processes often leave teams buried under spreadsheets instead of using data to drive insights.

Another hurdle? Misalignment across departments. Finance teams frequently operate in silos, leading to a lack of buy-in and collaboration during the budgeting and forecasting process. This can result in plans that fail to meet the needs of the entire organization.

How AI is Changing the FP&A Landscape

AI offers powerful solutions to address these challenges, enabling FP&A teams to work smarter, not harder. Here’s how:

• Data Processing at Scale: AI-powered tools can handle vast amounts of structured and unstructured data, uncovering patterns and correlations that manual processes often miss.
• Improved Forecasting: Machine learning models analyze historical data alongside external factors like seasonality and market trends to generate highly accurate predictions.
• Enhanced Scenario Planning: AI makes it possible to quickly model multiple “what-if” scenarios, empowering teams to adapt to changing conditions in real time.

By automating repetitive tasks and enabling more strategic work, AI is helping FP&A professionals focus on driving business outcomes rather than getting bogged down in data entry.

What’s Holding Teams Back?

While the benefits of AI are clear, adoption isn’t universal. Many organizations are hesitant to fully embrace AI due to:

1. Trust and Transparency: Finance teams need to understand and explain how AI arrives at its predictions and recommendations.
2. Data Quality and Bias: AI outputs are only as reliable as the data fed into them, which can be a concern for organizations with fragmented or inconsistent data.
3. Privacy Concerns: Handling sensitive financial data with AI requires robust compliance measures and secure systems.

Overcoming these barriers involves choosing tools that prioritize transparency and offer customizable options for users to refine and validate AI outputs.

The Future of FP&A: Human Expertise + AI Power

As discussed in the video, the real power of AI lies in its ability to enhance—not replace—human expertise. AI can handle the heavy lifting of data analysis, while finance professionals provide the strategic oversight and context that only humans can offer.

At Centage, this philosophy guides the development of our collaborative FP&A software. By integrating intuitive AI features with tools that foster alignment across teams, we’re empowering finance professionals to create budgets and forecasts that truly drive business success.

Ready to Learn More?

Whether you’re just starting your AI journey or looking to optimize your current processes, embracing AI in FP&A is a step toward better collaboration, smarter decisions, and more impactful results.

Want to see how Centage’s approach to AI can transform your budgeting and forecasting? Schedule a demo today and let’s build a better future for FP&A—together.

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