Sayyed Farhan Naqvi on AI’s Role in Redefining FP&A for Today’s CFO

In an era defined by market turbulence, escalating stakeholder demands, and the need for instantaneous insights, Financial Planning & Analysis (FP&A) is at a crossroads. Sayyed Farhan Naqvi, a distinguished CFO renowned for his expertise in corporate development, strategic finance, IPOs, and M&A, offers a bold perspective on how artificial intelligence (AI) can transform FP&A into a dynamic, strategic engine for the modern CFO. In this article, we explore Naqvi’s insights into five critical FP&A functions, their current limitations, and the revolutionary impact AI promises to deliver.

Budgeting & Forecasting: Real-Time Agility

Current budgeting and forecasting processes, often conducted annually or quarterly, rely on tools like Excel, Anaplan, or Oracle Hyperion. Naqvi points out that these methods, tethered to historical data and human judgment, produce static projections that struggle to keep pace with rapid market shifts.

AI, Naqvi predicts, will usher in continuous forecasting driven by real-time data from operations, sales, and external market signals. Predictive models will dynamically update as new information emerges, while AI-powered scenario planning will generate multiple outcomes in moments. This will equip CFOs with the agility to navigate uncertainty with precision.

Management Reporting: From Static to Strategic

Today’s management reporting is a time-consuming process, with finance teams using tools like PowerBI or Tableau to create static, periodic reports. Naqvi highlights that these reports often lack the depth and timeliness needed for strategic decision-making.

AI will revolutionize this function by delivering automated, narrative-driven reports that blend financial metrics with insightful explanations. Real-time anomaly detection will flag issues instantly, bypassing the delays of month-end cycles. Sayyed Farhan Naqvi envisions AI-crafted dashboards that adapt to each executive’s priorities, ensuring tailored, actionable insights.

Long-Range Planning: Foresight in Flux

Strategic planning today is a labor-intensive exercise, relying on historical trends and limited scenario testing. Naqvi notes that this approach restricts organizations’ ability to respond to evolving global conditions.

With AI, Naqvi foresees adaptive, data-rich strategic planning. AI simulations will analyze thousands of variables, incorporating factors like macroeconomic shifts, competitor strategies, and geopolitical events. Real-time updates to models will provide CFOs with unparalleled foresight, enabling flexible, forward-looking strategies.

Operational Analysis & Cost Management: Proactive Optimization

Operational analysis today is largely retrospective, with manual spreadsheet-based reviews of spending against budgets. Naqvi emphasizes that this approach misses opportunities for real-time efficiency.

AI will transform this into a proactive, real-time discipline. Continuous monitoring will detect cost anomalies as they arise, and machine learning will uncover hidden inefficiencies, offering recommendations like vendor renegotiations or process streamlining. Naqvi sees this as a pathway to strategic, data-driven cost management.

Capital Allocation & Investment Analysis: Precision Without Bias

Capital allocation currently depends on static models like IRR and NPV, which Naqvi notes are vulnerable to subjective assumptions. This can lead to suboptimal investment choices in a dynamic market.

AI will introduce probabilistic modeling, evaluating diverse outcomes to minimize bias. Naqvi envisions dynamic capital allocation frameworks that adjust in real time based on performance metrics and new opportunities, empowering CFOs to optimize resources with confidence.

FP&A’s Evolution: Strategic Empowerment Through AI

Sayyed Farhan Naqvi’s vision for FP&A is transformative: AI will shift the function from retrospective and manual to proactive and strategic. By automating routine tasks and delivering real-time insights, AI will empower finance teams to become trusted strategic advisors. Naqvi’s perspective is a call to action for CFOs to embrace AI, driving innovation and value in an increasingly complex world.