This lack of suitable tools impedes the CFO’s ability to anticipate macro trends and events, simulate their impact and inform relevant stakeholders in a timely manner. Despite the expert advice, vision statements, and case studies: Financial planning remains inward-focused, static, and reactive – ultimately, it remains ill-equipped to deal with the complexities of a rapidly changing world.

So far, neither cloud-based planning software nor sporadically adopted predictive analytics solutions have been able to really address these shortcomings. Instead, solving these challenges and building a solution that really works requires a new approach: A financial digital twin. Digital twin technology has proven itself in different industries like manufacturing, aviation and self-driving cars. A digital twin uses a software model fed by real-time sensors to simulate complex physical processes. Analogously, a financial twin of a company relies on live data about markets and learns how changes perceived by these sensors affect the organization’s financial performance.

Using a financial twin, finance teams will be able to simulate how performance will evolve under different market conditions. Always up-to-date predictions make it possible to spot market shocks as they are unfolding while on-demand scenario planning makes it easy to quantify the impact of different macro- and/or micro-level events across KPI’s. Finally, a financial twin unlocks a new set of tools to proactively identify risks and opportunities that teams might not have otherwise noticed.

Until recently, it would have been impossible to build financial twins. Black-box machine learning techniques do not offer the transparency required from financial insights. Custom-engineered models cannot scale to produce predictions across all financial statements at the right level of granularity. And interactive AI technology that helps answer questions even before they are asked was not mature enough. However, recent breakthroughs in generative and explainable AI, but also lesser-known fronts such as automated machine learning, operations research and computational logics have changed that.

Working at the Leuven.AI research institute, we were able to integrate these different AI technologies to develop a financial twin architecture. At Predikt, we are marrying our technological know-how with finance expertise developed through extensive experience with implementing predictive analytics solutions alongside global finance leaders. We believe that our unique blend of skills will allow us to deliver software that will enable finance teams to turn market volatility into a competitive advantage.

We cordially invite you to join us as we work with visionary finance leaders to create next generation strategic planning software built on transformative technology.