Journal of Primeasia
Integrative Disciplinary Research | Online ISSN 3064-9870 | Print ISSN 3069-4353
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Volume 5 Number 1 2024
RESEARCH ARTICLE (Open Access)
AI for Financial Forecasting and Strategic Decision-Making Using Predictive Analytics to Improve Budgeting, Forecasting, and Risk Management
Muslima Jahan Diba1*
Journal of Primeasia 5 (1) 1-8 https://doi.org/10.25163/primeasia.5110493
Submitted: 03 March 2024 Revised: 01 May 2024 Accepted: 08 May 2025 Published: 10 May 2024
Abstract
Background: Artificial Intelligence (AI) has become an essential tool for financial management because it helps improve forecasting abilities and budget creation and strategic choice evaluation. Traditional financial management systems exhibit multiple problems which result in slow reporting processes and ineffective forecasting results. AI systems allow organizations to analyze data in real-time while generating predictions through automated systems which leads to higher operational performance.
Methods: A quantitative cross-sectional survey was conducted among 350 finance professionals across banking, corporate, and public sector organizations in Bangladesh. Descriptive statistics summarized respondent demographics, while Pearson correlation (r) analyzed relationships between AI adoption and financial indicators. The study used regression analysis to find performance improvement predictors and Chi-square (χ²) tests to assess relationships between variables. Analyses were performed at p = 0.05.
Results: AI technology integration led to major improvements in financial management which resulted in a 21.2% boost in forecast accuracy and an 18.7% improvement in budget control and a 17.3% enhancement in risk mitigation. The investigation exposed AI adoption (β = 0.61, p = 0.001, χ² = 25.12) as the greatest influential forecaster shadowed by data quality (β = 0.44) and organization support (β = 0.33). The Pearson correlation analysis presented that AI adoption has strong optimistic relationships with prediction accuracy (r = 0.82, p = 0.01) and budget control (r = 0.77, p = 0.01).
Conclusion: The research displays AI expertise delivers substantial developments to financial prediction and working efficiency and planned decision-making procedures.
Keywords: Financial Forecasting, Artificial Intelligence, Predictive Analytics, Risk Management, Strategic Decision-Making
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