UTILIZING AI FOR CASH FLOW FORECASTING: ENHANCING PREDICTIVE ACCURACY IN BUSINESS FINANCE

Abstract

Using AI for cash flow forecasting improves the accuracy and timeliness of financial predictions, allowing businesses to make better decisions and manage their resources. AI provides more reliable forecasts and allows for proactive financial management, fostering long-term stability and growth. This paper examines how AI improves cash flow forecasting by employing a comprehensive methodology that includes data analysis, literature reviews, and expert perspectives. Evaluating AI's impact on forecasting accuracy and comparing it to traditional methods provides a comprehensive understanding of its advantages. The study finds that AI improves forecasting accuracy, efficiency, and decision-making. However, issues such as ensuring data quality, controlling implementation costs, and balancing AI with human oversight must be addressed. Despite these challenges, incorporating AI into cash flow forecasting represents a significant step forward for businesses, with significant benefits when implemented properly.