ASSIGNMENT FINAL REPORT

Qualification Pearson BTEC Level 5 Higher National Diploma in Computing

Unit number and title Unit 06: Planning a computing project

Submission date 31/10/2024 Date Received 1st submission 31/10/2024

Re-submission Date Date Received 2nd submission

Student Name Vũ đăng khôi Student ID BS01129

Class SE07203 Assessor name Nguyễn văn quang

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Table of Contents
I. INTRODUCTION ..................................................................................................................................................... 6
II. MAIN CONTENT .................................................................................................................................................... 6
1) Demonstrate qualitative and quantitative research methods to generate relevant primary data for an
identified theme.(P1) ................................................................................................................................................ 6
a) Survey ........................................................................................................................................................... 6
b) Interview ..................................................................................................................................................... 12
2) Examine secondary sources to collect relevant secondary data and information for an identified theme.(P2)
20
a) Identify relevant sources of information: academic journals, industry reports, company websites, news
articles, interviews with experts ......................................................................................................................... 20
b) Create a search strategy using keywords and databases. .......................................................................... 21
c) Determine data collection methods: surveys, questionnaires, observation, document analysis. ............. 21
d) Develop a timeline for research activities. ................................................................................................. 22
3) Discuss the features and operational areas of a business in an identified sector.(P3) .................................. 23
a) Conduct searches using your research plan and record key findings......................................................... 23
b) Analysis of research results. ....................................................................................................................... 24
4) Discuss the role of stakeholders and their impact on the success of a business.(P4) .................................... 41
III. CONCLUSION................................................................................................................................................... 45
IV. REFERENCES .................................................................................................................................................... 45
Table of Figure
Figure 1. survey ........................................................................................................................................................... 11
Figure 2. Interview ...................................................................................................................................................... 19
Figure 2. Interview ...................................................................................................................................................... 19
Figure 3. Demographic Information ........................................................................................................................... 24
Figure 4. Research results ........................................................................................................................................... 25
Figure 5. Research results ........................................................................................................................................... 26
Figure 6. Research results ........................................................................................................................................... 27
Figure 7. Research results ........................................................................................................................................... 28
Figure 8. Research results ........................................................................................................................................... 30
Figure 9. Research results ........................................................................................................................................... 31
Figure 10. Research results ......................................................................................................................................... 33
Figure 11. Research results ......................................................................................................................................... 34
Figure 12. Research results ......................................................................................................................................... 35
Figure 13. Research results ......................................................................................................................................... 36
Figure 14. Research results ......................................................................................................................................... 37
Figure 14. Research results ......................................................................................................................................... 38
Figure 15. Research results ......................................................................................................................................... 39
Figure 16. Research results ......................................................................................................................................... 40
Figure 17. PROJECT CHARTER ..................................................................................................................................... 45
 I. INTRODUCTION
The integration of artificial intelligence (AI) and predictive analytics into financial planning and strategy
represents a transformative shift in the financial services industry. As organizations increasingly grapple
with complex market dynamics and vast data volumes, traditional financial planning methods are often
insufficient to address the demands of a rapidly evolving landscape. AI-powered predictive analytics offers
a solution by enabling data-driven decision-making, enhancing forecasting accuracy, and optimizing
financial strategies.

The purpose of this study is to explore how AI-powered predictive analytics systems can enhance financial
planning and strategy formulation. By examining the benefits, challenges, and emerging trends associated
with these technologies, the research aims to provide a comprehensive understanding of their impact on
the financial sector. Additionally, this study seeks to identify best practices for implementation and
highlight potential areas for future research.

II. MAIN CONTENT

1) Demonstrate qualitative and quantitative research methods to generate relevant
primary data for an identified theme.(P1)
a) Survey
Figure 1. survey
b) Interview
Figure 2. Interview
2) Examine secondary sources to collect relevant secondary data and information
for an identified theme.(P2)
a) Identify relevant sources of information: academic journals, industry reports, company
websites, news articles, interviews with experts
Academic Journals:

 Journal of Financial Planning

 Journal of Financial Forecasting
Industry Reports:
 McKinsey & Company reports on AI in financial services
 Deloitte reports on the future of finance and AI

Company Websites:

 Websites of leading financial services firms (e.g., JPMorgan Chase, Bank of America, Citi)
showcasing their AI and predictive analytics initiatives
 Websites of AI/analytics software providers serving the finance industry (e.g., SAS, IBM, Microsoft)

News Articles:

 Articles from respected financial publications like The Wall Street Journal, Financial Times, Forbes,
and Bloomberg on the use of AI in financial planning and strategy
 Relevant news coverage from technology-focused publications like TechCrunch, Wired, and MIT
Technology Review

Interviews with Experts:

 Interviews with chief financial officers, heads of financial planning and analysis, and other finance
leaders who have implemented AI-powered predictive analytics
 Interviews with academic researchers and industry analysts specializing in the intersection of AI
and financial management

By gathering information from these diverse sources, I can provide a comprehensive analysis on how
AI-powered predictive analytics are being used to support financial planning and strategic decision-
making in the finance industry. The academic journals will offer in-depth research and theoretical
frameworks, the industry reports will provide market-level insights and best practices, the company
websites will showcase real-world applications, the news articles will highlight the latest trends and
developments, and the expert interviews will offer first-hand perspectives and practical
implementation details.
This multi-faceted approach will allow me to deliver a thorough and well-rounded analysis that covers
the key aspects of this topic, including the benefits, challenges, emerging trends, and future outlook of
AI-powered predictive analytics in financial planning and strategy.

b) Create a search strategy using keywords and databases.

By using a combination of keywords that target the core concepts of AI, predictive analytics, financial
planning, and financial strategy, I can effectively search across academic, business, industry, and news
databases to gather a diverse range of information on this topic.

The academic databases will provide access to peer-reviewed journal articles, conference
proceedings, and research papers that delve into the theoretical and empirical aspects of using AI-
powered predictive analytics in financial management. The business and finance databases will offer
industry reports, case studies, and thought leadership pieces from leading consulting firms and
financial institutions. The industry and market research databases will provide high-level market
insights, trends, and best practices. Finally, the news and media databases will help identify the latest
developments, news coverage, and expert perspectives on this topic.

By combining these targeted keyword searches across a wide range of databases, I can ensure a
comprehensive and well-rounded search strategy to gather the most relevant and authoritative
information on the use of AI-powered predictive analytics in financial planning and strategy.

c) Determine data collection methods: surveys, questionnaires, observation, document analysis.

Surveys and Questionnaires:

 Develop online surveys to be distributed to finance professionals, such as CFOs, financial analysts,
and financial planning managers, to understand their experiences, perceptions, and challenges
with implementing AI-powered predictive analytics.
 Design questionnaires to be completed by executives and decision-makers in finance departments
of various organizations, focusing on the benefits, limitations, and future plans for leveraging AI in
financial planning and strategy.

Observation:

 Conduct on-site observations at financial institutions and organizations that have successfully
integrated AI-powered predictive analytics into their financial planning and decision-making
processes.
 Observe the workflows, decision-making processes, and interactions between finance teams and
the AI/analytics systems to gain first-hand insights into the practical implementation and usage of
these technologies.

Document Analysis:
  Collect and analyze internal financial reports, planning documents, and strategy presentations that
showcase the application of AI-powered predictive analytics.
 Review case studies, white papers, and industry publications that describe the successful
implementation of AI in financial planning and strategy.
 Examine policy documents, regulatory guidelines, and industry best practices related to the use of
AI in the financial sector.

Interviews:

 Conduct in-depth interviews with finance executives, financial planning and analysis (FP&A)
leaders, and data scientists responsible for implementing AI-powered predictive analytics systems.
 Gather insights from academic researchers and industry experts who have studied the intersection
of AI and financial management.
 Interview representatives from AI/analytics software providers serving the finance industry to
understand the technological capabilities and future roadmap of their solutions.

d) Develop a timeline for research activities.

Week Activity Description
Define Research Objectives: Establish clear research goals and questions. Identify key themes
1
related to AI and predictive analytics in finance.
Literature Review: Conduct a preliminary literature review using academic journals, industry
2
reports, and relevant online resources to gather existing knowledge.
Develop Research Instruments: Create surveys and questionnaires. Prepare interview guides
3
for expert interviews.
Identify Participants: Compile a list of potential survey respondents and interview candidates,
4
including finance professionals and academic experts.
Pilot Testing: Conduct a pilot test of surveys and questionnaires to refine questions and ensure
5
clarity. Make adjustments based on feedback.
Data Collection - Surveys/Questionnaires: Distribute surveys and questionnaires to targeted
6
finance professionals and collect responses.
Data Collection - Interviews: Schedule and conduct interviews with selected finance
7
executives, analysts, and experts.
Data Collection - Observations: Organize site visits to institutions using AI-powered predictive
8
analytics. Conduct observations and take detailed notes.
Document Analysis: Collect and analyze relevant documents, including internal reports, case
9
studies, and industry publications.
Data Analysis: Analyze survey data using statistical software. Transcribe and analyze interview
10
and observation notes qualitatively.
Synthesize Findings: Integrate findings from all data sources. Identify key themes, trends, and
11
insights regarding AI in financial planning.
 Prepare Final Report: Compile research findings into a comprehensive report. Include
12 conclusions, recommendations, and potential areas for further research. Present findings to
stakeholders.

3) Discuss the features and operational areas of a business in an identified

sector.(P3)
a) Conduct searches using your research plan and record key findings.
 This document discovers the way that AI prediction analysis is improving financial planning
through providing more accurate forecasts, script modeling and strategic insights. Who uses
historical data and machine algorithms to predict financial trends in the future, helping
businesses make a smarter decision on investment and resource allocation. This system also
allows modeling with many financial scenarios, helping businesses prepare for instability and
choose the right strategy for the long -term goals.[1]
 This study analyzes the impact of AI-powered predictive analytics on financial forecasting and risk
management in businesses. The results show that the adoption of AI improved forecast accuracy
by 15% and reduced forecast errors by 20%, and demonstrated a positive correlation between AI
adoption and advanced risk management strategies. The study highlights the ability of AI to help
businesses adapt to rapid changes in the business environment.[2]
 This white paper provides guidance on how to use AI in predictive analytics to make smarter
decisions. It describes the process from data collection and preparation to building and deploying
predictive models. Predictive analytics systems not only improve decision making processes but
also enhance risk management and customer service personalization, thereby optimizing the
financial performance of the organization.[3]
 This white paper examines how financial institutions are applying AI to improve financial
decision-making. It highlights the use of predictive analytics to optimize financial models, giving
managers greater insight into expected costs and revenues. The study finds that the use of AI
reduces risk and increases the accuracy of predictions across different financial scenarios.[4]
 This paper examines the use of predictive analytics in financial services and how it is changing the
way financial institutions approach data. It focuses on specific applications such as predicting
customer behavior, optimizing products, and managing financial risk. It provides real-world
examples of companies that have successfully applied predictive analytics to improve financial
performance and increase customer satisfaction.[5]
b) Analysis of research results.
Interview:

Figure 3. Demographic Information

 Age and Background: Understanding the demographic distribution helps identify the level of
experience and expertise among respondents. A diverse age range may indicate varied
perspectives on technology adoption and financial practices.

Figure 4. Research results

Attendance at finance and technology conferences/events:

 25% of respondents regularly participate in such events.

 75% either do not often attend (50%) or have no intention of participating (25%).

Work environment:

 50% of respondents work in an office environment.

 50% work remotely or in a combination of office and remote work.
 There is no indication of respondents working in outdoor or on-site environments.
 Figure 5. Research results
Years of Experience in Finance:

 50% of respondents have 1-3 years of experience in finance.

 25% have under 1 year of experience, and 25% have 4-6 years of experience.
 There is no indication of respondents having over 6 years of finance experience.

Analysis System in the Financial Sector:

 50% of respondents indicate that the analysis system uses algorithms to predict financial trends.
 50% believe the system calculates monthly costs.
 There is no mention of human resource management systems or information security systems
being used for analysis.

Figure 6. Research results

Data Used in AI Predictive Analysis for Financial Planning:

 50% of respondents indicate that financial and economic data is used in the AI predictive analysis
system.
 The other 50% is split evenly between weather data and consumer product data, with no
mention of customer data from the fashion industry.
Machine Learning Algorithms in Financial Prediction Analysis:

 50% of respondents recognize that regression algorithms and neural networks are commonly
applied in financial prediction analysis.
 25% believe arranging algorithms are used, and another 25% mention binary search algorithms.
 There is no indication of crypto algorithms being used in this context.

Figure 7. Research results

Improving Accuracy in Financial Predictions:

 50% of respondents believe that regularly updating data and algorithms is the key to improving
accuracy in financial predictions.
 25% think increasing the number of employees can improve accuracy, while another 25% believe
using inaccurate data is the way to go.
 There is no indication that changing the definition of finance is considered a viable option.

Experience with AI Predictive Analytics Systems:

 75% of respondents have never heard of AI predictive analytics systems.

 25% have heard of it, but have not used it.
 There are no indications of respondents having used such systems, either finding them useful or
not useful.
 Figure 8. Research results

Challenges in Implementing AI Predictive Analytics:

 50% of respondents identify missing data as a key challenge in implementing AI predictive

analytics.
 25% cite too much data as a challenge, and another 25% find difficulty in finding employees with
the right skills.
 There is no mention of a lack of interest in finances being a challenge.

Ensuring Data Accuracy and Reliability:

 50% of respondents believe that checking and verifying data from multiple sources is the best
way to ensure data accuracy and reliability.
 25% think using data from only one source is sufficient, while another 25% believe just trusting
their feelings is the way to go.
 There is no indication that there is no need to check the data.

Figure 9. Research results

How AI Predictive Analytics Can Help in Budget Planning:

 50% of respondents believe that AI predictive analytics can help in forecasting future costs and
revenues.
 The other 50% think it can help reduce advertising costs.
 There is no indication that AI can help with personnel changes or increasing the number of
products.

Replacing the Role of Financial Analysts with AI:

 75% of respondents believe that AI cannot completely replace the role of financial analysts
because AI needs humans to function.
 25% think AI can replace analysts because it is faster and more accurate.
 There is no mention of AI not being able to make decisions as a reason for not replacing analysts.
 Figure 10. Research results

Factors Affecting the Performance of an AI Predictive Analytics System:

 50% of respondents identify input data quality as a key factor affecting the performance of an AI
predictive analytics system.
 The other 50% believe the time of day can influence the system's performance.
 There is no mention of the number of employees or office location as factors affecting the
system's performance.

How Businesses Can Make the Most of AI Technology in Financial Analysis:

 50% of respondents believe that investing in new technology and employee training is the best
way for businesses to make the most of AI technology in financial analysis.
 25% think letting things happen naturally is the way to go, while another 25% suggest using only
old technology.
 There is no indication that no changes are needed.

Figure 11. Research results

Increased use of big data and deep learning:

 50% of respondents believe this will be a prominent trend in the future of AI predictive analytics
in finance.

Reducing the use of technology:

 25% of respondents predict that there will be a reduction in the use of technology in this domain.

Focus on traditional analysis:

 25% think the focus will shift back towards traditional financial analysis, without relying heavily
on AI.
Survey:

Figure 12. Research results

What field do you work in?

 66.7% of respondents work in Information Technology.

 33.3% work in Finance.
 No respondents selected Education or Medical.

How many years of experience do you have in finance?

 66.7% of respondents have 1-3 years of experience in finance.
 33.3% have under 1 year of experience.
 No respondents indicated experience in the 4-6 years or over 6 years categories.

Figure 13. Research results

Have you ever used AI technology in your work?

 Responses are evenly divided among three options, each with 33.3%
 This suggests a mix of experience levels with AI technology among the respondents.

What is your position in the company?

 The responses are equally split at 33.3% across three roles

 No responses were recorded for the Director position.

Figure 14. Research results

How can AI predictive analytics help in financial planning?

 Forecasting costs and revenues (33.3%)

 Increasing the number of employees (33.3%)
 Reducing product costs (33.3%)

What data is most important for a predictive analytics system to work effectively?
According to the image, the most important data for a predictive analytics system to work effectively
is historical financial data (66.7%). The other types of data shown (weather data, product data,
personnel data) are less important.

Figure 14. Research results

What algorithms are commonly used in AI predictive analytics?

According to the pie chart, the most commonly used algorithms in AI predictive analytics are:

 Sorting algorithm (66.7%)

 Regression and deep learning algorithms (33.3%)
What can affect the accuracy of predictions from an AI system?

The image shows that the top factors that can affect the accuracy of predictions from an AI system
are:

 Input data quality (33.3%)

 Office location (33.3%)
 Number of employees (33.3%)

Figure 15. Research results

What is one key benefit of using AI in financial planning?

The top key benefit of using AI in financial planning, according to the pie chart, is enhancing data-
driven decision making (33.3%). The other benefits shown are reducing costs across all departments
(33.3%), automating all processes (33.3%), and completely eliminating the need for staff (0%).

Which of the following can AI predictive analytics systems help businesses with?

The image shows that the top areas where AI predictive analytics systems can help businesses are:

 Forecasting market trends (33.3%)

 Increasing salary for employees (33.3%)
 Product changes (33.3%)

Figure 16. Research results

How can AI help mitigate financial risks?

According to the pie chart, the primary way AI can help mitigate financial risks is by providing
accurate predictive analytics (66.7%). The other options shown are cutting costs (33.3%), completely
replacing analysts (0%), and increasing the number of products (0%).

What are the emerging trends in AI adoption in finance today?

The image shows that the top emerging trends in AI adoption in finance are:

 ncreased use of big data (66.7%)

 Reducing the use of technology (33.3%)

4) Discuss the role of stakeholders and their impact on the success of a business.(P4)
 Figure 17. PROJECT CHARTER

III. CONCLUSION
In conclusion, the integration of AI-powered predictive analytics into financial planning and strategy marks
a significant advancement in how financial institutions operate and make decisions. This research has
highlighted several key findings regarding the benefits, challenges, and emerging trends associated with
the adoption of these technologies.

IV. REFERENCES
Shah, S. (2024). Introduction Predictive analytics powered by AI is transforming financial
planning by providing more accurate forecasts, scenario modeling, and strategic insights. This
article explores how AI enhances financial planning, enabling better business
decisions. [online] Linkedin.com. Available at: https://www.linkedin.com/pulse/predictive-
analytics-financial-planning-ai-better-business-shah-34vmf [Accessed 30 Oct. 2024].[1]
Das, S.K. (2023). AI-Powered Predictive Analytics in Financial Forecasting: Implications for
Corporate Planning and Risk Management. International Journal of Intelligent Systems and
Applications in Engineering, [online] 12(21s), pp.3512–3516. doi: https://doi.org/10.2308/isys-
51762. [2]
Zdrok, O. (2024). How to Use AI for Predictive Analytics and Smarter Decision Making.
[online] Shelf. Available at: https://shelf.io/blog/ai-for-predictive-analytics/. [3]
Huang, A. and You, H. (2022). Artificial Intelligence in Financial Decision Making. [online]
papers.ssrn.com. Available at:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4235511. [4]
Edwards, J. and Olavsrud, T. (2023). Predictive analytics: Transforming data into future
insights. [online] www.cio.com. Available at: https://www.cio.com/article/228901/what-is-
predictive-analytics-transforming-data-into-future-insights.html. [5]