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 09/12/2024 Date Received 1st submission 09/12/2024

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
PROJECT CHARTER........................................................................................................................................ 7
1. General Project Information..............................................................................................................7
2. Project Team..................................................................................................................................... 7
3. Stakeholders (e.g., those with a significant interest in or who will be significantly affected by this
project).................................................................................................................................................. 7
4. Project Scope Statement...................................................................................................................8
I. INTRODUCTION................................................................................................................................... 11
II. MAIN CONTENT...................................................................................................................................11
1) Demonstrate qualitative and quantitative research methods to generate relevant primary data for
an identified theme.(P1)......................................................................................................................... 11
a) Qualitative Research Methods.....................................................................................................11
b) Quantitative Research Methods.................................................................................................. 32
c) Comparison of Outputs................................................................................................................44
2) Examine secondary sources to collect relevant secondary data and information for an identified
theme.(P2).............................................................................................................................................. 45
List of articles /books.......................................................................................................................... 45
a) Document 1: AI and Financial Risk Management: A Comprehensive Review (Journal Article)....45
b) Document 2: The Role of Machine Learning in Fraud Detection in Banking (Industry Report by
McKinsey)............................................................................................................................................ 45
c) Document 3: Regulatory Challenges of AI in Finance: A European Perspective (Government
Policy Paper)........................................................................................................................................45
d) Document 4: Financial Institutions and Artificial Intelligence: Transforming Risk Management
(Case Study).........................................................................................................................................46
e) Document 5: AI for Financial Decision-Making: Trends, Risks, and Opportunities (Book Chapter)
46
3) Discuss the features and operational areas of a business in an identified sector.(P3)....................46
a) Company: JPMorgan Chase & Co.................................................................................................46
b) Characteristics of JPMorgan Chase & Co.:....................................................................................47
c) Activities of JPMorgan Chase & Co. in AI-Powered Predictive Analytics for Strategic Financial
Planning:.............................................................................................................................................. 47
 d) Conclusion.................................................................................................................................... 49
4) Discuss the role of stakeholders and their impact on the success of a business.(P4)......................50
a) Shareholders/Investors................................................................................................................50
b) Customers.................................................................................................................................... 50
c) Employees.................................................................................................................................... 50
d) Regulators and Government Bodies............................................................................................ 50
e) Suppliers and Partners................................................................................................................. 51
f) Communities and Society.............................................................................................................51
g) Media and Public Opinion............................................................................................................51
h) Credit Rating Agencies................................................................................................................. 51
i) Conclusion.................................................................................................................................... 52
5) Devise comprehensive project plans for a chosen scenario, including a work and resource
allocation breakdown using appropriate tools.(P5)................................................................................52
a) Project Objective..........................................................................................................................52
b) Phases and Breakdown................................................................................................................ 52
c) Work Breakdown Structure (WBS)...............................................................................................55
d) Estimate the time needed for each task and create a realistic timeline......................................55
e) Timeline (Gantt Chart)..................................................................................................................57
6) Communicate appropriate project recommendations for technical and nontechnical audiences.
(P6) 58
7) Present arguments for the planning decisions made when developing the project plans.(P7).......58
a) Structured Phase-Based Approach...............................................................................................58
b) Extensive Planning Phase.............................................................................................................58
c) Technology Stack Selection..........................................................................................................58
d) Emphasis on Stakeholder-Centric Design.....................................................................................59
e) Allocation of Sufficient Development Time..................................................................................59
f) Rigorous Testing Phase................................................................................................................ 59
g) Ongoing Maintenance and Monitoring........................................................................................60
h) Resource Allocation Decisions..................................................................................................... 60
i) Use of Tools for Management and Development........................................................................60
 j) Clear Communication Strategy.................................................................................................... 61
8) Discuss accuracy and reliability of the different research methods applied.(P8)............................61
a) Interview...................................................................................................................................... 61
b) Survey.......................................................................................................................................... 61
c) Docs review.................................................................................................................................. 61
III. CONCLUSION................................................................................................................................... 63
IV. REFERENCES.....................................................................................................................................63

Table of Figure
Figure 1. Interview...................................................................................................................................... 15
Figure 2. answer Interview......................................................................................................................... 31
Figure 3. survey.......................................................................................................................................... 37
Figure 4. answer Interview......................................................................................................................... 43
Figure 2. Interview...................................................................................................................................... 44
Figure 5. Work Breakdown Structure......................................................................................................... 55
Figure 6. Gantt Chart.................................................................................................................................. 57
 PROJECT CHARTER

1. General Project Information

Project Name: AI-powered predictive analytics system for strategy financial planning
Impact of Learn the impact of big data technology applications and operational efficiency
project:
2. Project Team
 Name  Depart  Telep  E-mail
ment hone
Project Vũ đăng khôi Artificial
Manager: intelligence
department
Team Trịnh trần hoàng anh Artificial
Members: intelligence
department
Lê trần thảo vi Artificial
intelligence
department
Nguyễn quốc hậu Artificial
intelligence
department
Nguyễn anh nhật Artificial
intelligence
department

3. Stakeholders (e.g., those with a significant interest in or who will be significantly affected by this project)

Lecturer: Nguyễn Văn Quang

Classmate: Tủn, Lê vi, Hoàng Anh, Hậu
Big data applications:

Project Sponsor: Chief Financial Officer (CFO)

Project Manager: Vũ Đăng Khôi
Data Analysts: Hoàng Anh
IT Department: Lê Vi
Finance Team: Hậu
End Users: Financial analysts and managers
 4. Project Scope Statement

Project Purpose

The purpose of this project is to develop and implement an AI-powered predictive analytics
system that enhances the strategic financial planning capabilities of organizations. This
system will leverage historical financial data and predictive modeling techniques to forecast
future financial trends, optimize budgeting, and improve decision-making processes.

Objectives

 Objective 1: To create a predictive analytics model that accurately forecasts financial

metrics (e.g., revenue, expenses, cash flow).
 Objective 2: To integrate the predictive model with existing financial systems and tools
used by the organization.
 Objective 3: To provide training and support for users to effectively utilize the new system.
 Objective 4: To achieve a measurable improvement in financial planning accuracy and
efficiency within six months of implementation.
Research Methods and Techniques

Qualitative Research:
Purpose : To gain insights into user experiences and perceptions regarding predictive
analytics.
Techniques :
 Interviews : Conduct semi-structured interviews with finance professionals, data
scientists, and stakeholders to gather qualitative data.
 Focus Groups : Facilitate discussions among users to explore their needs, challenges,
and expectations from the system.
Quantitative Research:
Purpose : To analyze numerical data and validate hypotheses about the effectiveness of
predictive analytics.
Techniques :
 Surveys : Design and distribute questionnaires to collect quantitative data from a
larger audience about their experiences and opinions on AI in financial planning.
 Statistical Analysis : Use statistical methods to analyze historical financial data and
outcomes of predictive models.
Literatures

Nenonen, K. (2024). In today’s competitive marketplace, businesses rely on data-

driven decision-making to gain insights, identify opportunities, and drive sales
performance. Business intelligence (BI) tools and techniques play a crucial role in
gathering, analyzing, and interpreting data to inform strategic sales decis. [online]
Linkedin.com. Available at: https://www.linkedin.com/pulse/leveraging-business-
intelligence-data-driven-sales-kari-nenonen-u1flf [Accessed 29 Oct. 2024].
‌thông, B.T. tin và T. (n.d.). AI xuất hiện ra sao trong các lĩnh vực kinh tế. [online]
Cổng Thông tin điện tử Bộ Thông tin và Truyền thông. Available at:
https://mic.gov.vn/ai-xuat-hien-ra-sao-trong-cac-linh-vuc-kinh-te-197143154.htm.
‌Phương Thảo and Phương Thảo (2024). AI (Trí Tuệ Nhân Tạo) Đang Thay Đổi Kinh
Tế Thế Giới Thế Nào ? [online] Thạc sĩ QTKD Đại học Andrews Hoa Kỳ. Available at:
https://andrews.edu.vn/ai-tri-tue-nhan-tao-dang-thay-doi-kinh-te-the-gioi-the-
nao/ [Accessed 29 Oct. 2024].
‌Báo Nhân Dân điện tử. (2024). Ứng dụng AI trong lĩnh vực tài chính. [online]
Available at: https://nhandan.vn/ung-dung-ai-trong-linh-vuc-tai-chinh-
post807129.html.
‌Smart Business Vietnam (2024). Tối ưu hóa danh mục đầu tư được hỗ trợ bởi AI :
tương lai của Quản lý tài sản? [online] Your Smart Business Idea. Available at:
https://smartbusiness.vn/technology/aiot/toi-uu-hoa-danh-muc-dau-tu-duoc-ho-
tro-boi-ai-tuong-lai-cua-quan-ly-tai-san/ [Accessed 29 Oct. 2024].

‌
Deliverables

 A fully functional AI-powered predictive analytics system.

 User training sessions and materials.
 Integration report detailing the connection between the predictive model and existing
systems.
 Performance metrics report demonstrating improvements in financial planning
accuracy.

Scope

In-Scope
 Development of the predictive analytics model using historical data.
 Integration with current financial management software.
 User training and documentation.
 Ongoing support and maintenance for the system.
Out-of-Scope
 Development of new financial management software.
 Changes to organizational financial policies and procedures.
 Data collection beyond the existing financial datasets.

Project Milestones

 Milestone 1: Project kickoff and requirements gathering (Week 1)

 Milestone 2: Development of predictive model (Weeks 2-6)
 Milestone 3: System integration (Weeks 7-8)
 Milestone 4: User training sessions (Weeks 9-10)
 Milestone 5: Project closure and performance evaluation (Week 12)
 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) Qualitative Research Methods
 In-depth Interviews
Objective: Explore challenges faced by finance professionals in forecasting and decision-making.

Target Audience: CFOs, financial analysts, and business strategy experts.

 Figure 2. answer Interview

 Focus Groups
Objective: Gain a collective understanding of shared experiences and perspectives on AI in financial
planning.

Participants: Small groups of finance professionals from diverse industries.

Methodology:

-Host a 60-90 minute moderated discussion.

-Use prompts such as:

 "Discuss the tools you currently use for financial planning and their limitations."

 "Imagine an ideal predictive analytics system. What features would it have?"

-Record sessions and identify common themes or divergent opinions.

Output: Insights into group dynamics, common challenges, and feature preferences.

 Observational Studies
Objective: Understand real-world workflows and identify inefficiencies in financial planning.

Setting: Observe finance teams at work in corporate environments.

Methodology:

-Take notes on how teams interact with current tools, handle data, and make forecasts.

-Look for pain points like manual processes or reliance on outdated tools.

Output: Contextual understanding of practical challenges.

b) Quantitative Research Methods

 Survey
Figure 3. survey
 Figure 4. answer Interview

 Polls
Objective: Quickly gauge opinions on specific aspects of AI adoption.

Setting: Social media platforms, webinars, or industry events.

Methodology:

-Example poll question: "Would you consider implementing an AI-powered forecasting tool in your
organization? (Yes/No/Maybe)"

-Collect responses in real-time.

Output: Snapshot of interest levels or immediate concerns.

 Statistical Analysis
Objective: Analyze historical data on financial forecasting errors or inefficiencies.

Methodology:

-Collect data from organizational records, financial statements, or benchmarking reports.

-Apply statistical tests to uncover patterns or correlations,..…, between manual processes and
forecasting inaccuracies.

Output: Evidence-backed insights into forecasting challenges.

c) Comparison of Outputs
Aspect Qualitative Research Quantitative Research
Descriptive, textual, and Numerical, statistical, and
Data Type
thematic measurable
Deep insights into motivations Broad trends, generalizability,
Strengths
and behaviors scalability
Time-consuming, less Lacks depth, dependent on
Limitations
generalizable question design
Themes: "Data integration 70% report challenges with
Examples of Output
issues," "Low AI trust" manual processes
2) Examine secondary sources to collect relevant secondary data and information
for an identified theme.(P2)
List of articles /books
a) Document 1: AI and Financial Risk Management: A Comprehensive Review (Journal Article)
 Key Findings: This paper discusses the growing role of AI in financial risk management,
particularly its application in credit risk assessment, fraud detection, and market risk. It identifies
machine learning models, such as decision trees and neural networks, as key tools used by banks
to enhance their risk prediction accuracy.
 Research Issue: The research addresses how AI models can outperform traditional statistical
methods in predicting financial risk, especially in volatile markets.
 Conclusion: AI has the potential to revolutionize financial risk management by providing more
accurate predictions and reducing human error. However, the adoption of AI must be carefully
managed due to concerns about transparency and ethical implications.
b) Document 2: The Role of Machine Learning in Fraud Detection in Banking (Industry Report by
McKinsey)
 Key Findings: The report explores how machine learning algorithms are being increasingly utilized
by financial institutions to detect fraudulent activities. Key technologies include anomaly
detection, pattern recognition, and predictive analytics, which allow financial institutions to
identify suspicious transactions in real time.
 Research Issue: This document focuses on the integration of AI into banking systems to prevent
fraud and enhance security.
 Conclusion: Financial institutions that have adopted AI-driven fraud detection systems report
significantly lower levels of fraud and faster response times. The paper emphasizes the need for
continuous model training to adapt to new fraud tactics.
c) Document 3: Regulatory Challenges of AI in Finance: A European Perspective (Government
Policy Paper)
 Key Findings: This policy paper outlines the challenges regulatory bodies face in overseeing AI
adoption in financial services, including ensuring transparency, data privacy, and algorithmic
fairness. It discusses ongoing efforts by the European Union to create guidelines that balance
innovation with regulation.
 Research Issue: The document examines how financial institutions can comply with emerging AI
regulations while still leveraging AI’s full potential for risk management.
 Conclusion: Regulatory clarity is needed to ensure that AI is used responsibly in financial risk
management. The EU is pushing for regulations that promote ethical AI use without stifling
innovation.
 d) Document 4: Financial Institutions and Artificial Intelligence: Transforming Risk Management
(Case Study)
 Key Findings: This case study looks at several global banks that have implemented AI in risk
management, such as JPMorgan and Deutsche Bank. It discusses the benefits of AI in predictive
analytics and automated reporting, as well as the challenges related to data quality and
integration.
 Research Issue: It explores the practical applications of AI in financial institutions and the
challenges they face in implementing these technologies effectively.
 Conclusion: Banks that successfully integrate AI into their risk management frameworks see
improvements in efficiency, decision-making, and cost reduction. However, integration challenges
such as legacy systems and data silos need to be addressed.
e) Document 5: AI for Financial Decision-Making: Trends, Risks, and Opportunities (Book Chapter)
 Key Findings: This chapter focuses on how AI can assist financial decision-making by providing
predictive insights, automating routine tasks, and identifying emerging risks. It highlights both
opportunities (such as improved forecasting and asset management) and risks (including the
potential for algorithmic bias and over-reliance on AI).
 Research Issue: The document delves into how AI can enhance decision-making processes in
finance, including potential pitfalls.
 Conclusion: While AI can optimize financial decision-making, the risks associated with bias, data
security, and over-reliance on machine learning models require careful monitoring. AI should be
seen as a tool to complement, not replace, human expertise in decision-making.
3) Discuss the features and operational areas of a business in an identified sector.
(P3)
Let’s take JPMorgan Chase & Co, one of the largest and most prominent financial services institutions
globally, as an example to discuss how AI-powered predictive analytics is used for strategic financial
planning, along with the company’s characteristics and activities in the financial sector.

a) Company: JPMorgan Chase & Co.

 Overview:
JPMorgan Chase & Co. is a multinational investment bank and financial services holding company
headquartered in New York City. It is the largest bank in the United States by assets and one of the
largest
 b) Characteristics of JPMorgan Chase & Co.:
 Technology-Driven Innovation:
JPMorgan Chase has been a leader in incorporating AI and machine learning into its financial services.
The bank uses AI-powered predictive analytics to improve decision-making in several areas, from risk
management and trading to customer service and fraud detection.

The bank has invested heavily in technology through its JPMorgan AI Lab, which explores the use of AI in
finance, and has partnered with startups and universities to advance its capabilities.

 Global Reach and Diverse Services:

JPMorgan Chase operates across more than 100 countries, offering services that span investment
banking, asset management, corporate banking, and retail banking. Its vast global presence allows it to
leverage a wealth of data from diverse markets to inform predictive models.

The company serves individual clients (retail banking), large corporations (commercial banking), and
institutional investors (investment banking and asset management).

 Data-Centric Culture:
The bank places a strong emphasis on data and analytics. It uses vast amounts of financial data to drive
its business strategy, leveraging both historical and real-time data in predictive models.

The use of big data and machine learning enables JPMorgan Chase to identify emerging trends, predict
market movements, and offer personalized financial products to clients.

 Focus on Risk Management:

JPMorgan Chase operates in a highly regulated industry and must manage a wide range of financial risks,
including credit risk, market risk, operational risk, and liquidity risk. AI-powered predictive analytics is
instrumental in assessing and mitigating these risks.

The bank uses machine learning algorithms to assess the creditworthiness of borrowers, optimize its
trading strategies, and predict market shifts that could impact its portfolios.

 Commitment to Sustainability:
JPMorgan Chase has made sustainability a key focus, aiming to achieve net-zero emissions by 2050. As
part of this strategy, the bank uses AI and data analytics to evaluate the environmental, social, and
governance (ESG) risks associated with investments and lending practices.

c) Activities of JPMorgan Chase & Co. in AI-Powered Predictive Analytics for Strategic Financial
Planning:
 AI in Investment Banking and Trading:
Predictive Analytics in Trading: JPMorgan Chase uses AI-powered algorithms to analyze historical and
real-time market data, which helps its traders predict market movements and optimize trading
strategies. For example, its AI system can identify patterns in stock movements and forecast future
trends, allowing traders to make more informed decisions.

Risk Modeling: The bank uses machine learning models to predict risks in various asset classes and
inform its investment strategy. By evaluating multiple scenarios and market conditions, predictive
analytics helps the bank to identify the potential risks and returns associated with various investment
opportunities.

 Customer Insights and Personalization:

Personalized Financial Products: JPMorgan Chase uses predictive analytics to offer tailored financial
products to its customers. By analyzing a customer’s transaction history, preferences, and financial
behavior, the bank can recommend personalized services, such as loans, credit cards, and investment
options.

Chatbots and Customer Support: The bank has implemented AI-powered chatbots like COiN (Contract
Intelligence) and other virtual assistants to enhance customer service. These tools help customers with
account inquiries, provide investment advice, and even assist in complex financial planning tasks.

 Fraud Detection and Prevention:

AI-Powered Fraud Detection: JPMorgan Chase uses machine learning models to detect fraudulent
activities in real time. These predictive models analyze transaction patterns and behaviors to identify
anomalies, helping to prevent fraud before it occurs. This system continuously learns from new data,
improving its accuracy over time.

Cybersecurity: In addition to fraud detection, JPMorgan Chase uses AI to monitor and predict
cybersecurity threats, ensuring that sensitive customer data and financial transactions remain secure.

 Financial Risk Management:

Credit Risk Modeling: The bank uses AI and predictive analytics to assess the credit risk of individuals and
businesses. Machine learning models analyze a variety of data sources, including credit history, market
conditions, and economic indicators, to predict a borrower’s likelihood of default. This helps JPMorgan
Chase to make informed lending decisions and manage its credit portfolio.

Stress Testing and Scenario Analysis: Predictive analytics is used to run stress tests that simulate different
economic and market conditions. These models help JPMorgan Chase to assess how its portfolios will
perform under adverse scenarios, enabling the bank to adjust its strategy proactively.

 AI in Asset Management:
Portfolio Management: AI-powered predictive analytics is used to optimize portfolio management. By
analyzing vast datasets on stocks, bonds, commodities, and other assets, the bank can predict how
different assets will perform and optimize asset allocation for its clients.
Robo-Advisory Services: JPMorgan Chase offers robo-advisory services to clients through its You Invest
platform. AI algorithms help create personalized investment strategies based on client risk tolerance,
financial goals, and market conditions.

 Strategic Decision-Making in Mergers and Acquisitions (M&A):

Predictive Analytics for M&A: JPMorgan Chase uses AI tools to analyze market trends, company
performance data, and financial health indicators to inform its M&A strategies. Predictive models help
identify potential acquisition targets, evaluate synergies, and forecast post-merger performance.

Due Diligence and Valuation: The bank employs AI-driven tools for automating the due diligence process
during acquisitions. These tools analyze massive datasets to assess a company’s value, potential risks,
and long-term profitability.

 Sustainability and ESG Integration:

Sustainability Risk Assessment: JPMorgan Chase uses predictive analytics to assess ESG risks, allowing it
to evaluate investments in terms of sustainability. AI models predict the financial impact of
environmental risks (such as climate change) and social governance issues on investments, helping the
bank to make responsible investment decisions that align with its sustainability goals.

Green Finance: The bank also uses AI to identify and assess green bonds, renewable energy investments,
and other sustainable financial products, further integrating sustainability into its strategic financial
planning.

d) Conclusion
JPMorgan Chase & Co. is at the forefront of leveraging AI-powered predictive analytics in its strategic
financial planning. From risk management to personalized customer services, and from trading to fraud
detection, AI plays a critical role in optimizing the bank's operations and informing its decision-making
processes. By utilizing machine learning, big data, and predictive models, JPMorgan Chase is able to stay
ahead of market trends, mitigate risks, improve customer satisfaction, and pursue a sustainable future.
The company’s activities in AI-driven financial strategies demonstrate the transformative potential of
artificial intelligence in the financial sector, enabling more accurate forecasting, enhanced decision-
making, and smarter investments.
 4) Discuss the role of stakeholders and their impact on the success of a business.(P4)
Stakeholders play a crucial role in the success and operational effectiveness of JPMorgan Chase & Co.,
one of the world’s largest and most influential financial institutions. Each group of stakeholders—
whether internal (employees) or external (investors, customers, regulators, etc.)—has a distinct impact
on the company's strategies, performance, and long-term growth.

a) Shareholders/Investors
Role: Shareholders, which include institutional investors, retail investors, and pension funds, provide the
financial capital necessary for JPMorgan Chase to operate and grow. They have a significant influence on
corporate governance, business strategies, and financial performance.

Impact on JPMorgan Chase: Investors influence the bank's decision-making processes, especially related
to profit generation, risk management, and strategic shifts. For example, shareholders may encourage
the company to increase returns by pushing for cost-cutting measures, mergers and acquisitions, or
adopting new business technologies (e.g., AI and blockchain). Investors also have a major say in the
company’s dividend policies and executive compensation.

b) Customers
Role: Customers are central to JPMorgan Chase’s business. The bank serves individual consumers,
businesses, corporations, and institutional investors across various financial services such as retail
banking, investment banking, asset management, and wealth management.

Impact on JPMorgan Chase: Customers influence product offerings, service delivery, and market
direction. For example, customers' increasing demand for digital banking services, like mobile apps,
virtual assistants, and personalized financial advice, has pushed JPMorgan Chase to invest heavily in
technology and digital platforms.

c) Employees
Role: Employees are essential to the operation and innovation at JPMorgan Chase. The bank employs
tens of thousands of people globally in roles across banking, technology, marketing, and regulatory
compliance. These employees help the company meet its financial goals and implement strategic
decisions.

Impact on JPMorgan Chase: Employees drive productivity, innovation, and customer service. A highly
skilled and motivated workforce contributes to JPMorgan’s competitive advantage. For example,
JPMorgan Chase's investment in artificial intelligence (AI) and data analytics relies heavily on its talented
workforce of data scientists, AI engineers, and financial analysts.

d) Regulators and Government Bodies

Role: Regulatory authorities and government bodies ensure that JPMorgan Chase operates within the
legal frameworks and complies with regulations governing banking practices, securities, and financial
markets. These include federal agencies like the U.S. Securities and Exchange Commission (SEC), the
Federal Reserve, and international regulators such as the Financial Conduct Authority (FCA) in the UK.

Impact on JPMorgan Chase: Regulatory compliance is crucial to the bank’s continued operation. Changes
in banking laws, tax policies, environmental regulations, or consumer protection laws can have
significant impacts on JPMorgan’s strategic direction. Moreover, the company must adapt to regulations
regarding capital reserves, anti-money laundering (AML), data privacy, and financial reporting.

e) Suppliers and Partners

Role: JPMorgan Chase relies on various suppliers and external partners for technology services, financial
data, and outsourced functions such as customer service, software development, and cybersecurity.

Impact on JPMorgan Chase: Strong partnerships with technology firms, data providers, and third-party
vendors allow JPMorgan Chase to enhance its financial services, improve operational efficiency, and
mitigate risks. The development of AI-powered tools and digital banking platforms, for instance, requires
continuous collaboration with tech companies.

f) Communities and Society

Role: The communities in which JPMorgan Chase operates, and the broader society, are important
stakeholders. The bank must address societal concerns like economic inequality, environmental
sustainability, and financial inclusion.

Impact on JPMorgan Chase: Social expectations and corporate social responsibility (CSR) initiatives play
a role in the company’s reputation and long-term success. By supporting local communities, financing
renewable energy projects, and providing financial literacy programs, JPMorgan Chase builds goodwill
and enhances its social license to operate.

g) Media and Public Opinion

Role: Media, analysts, and public opinion shape the public perception of JPMorgan Chase. Media
coverage can influence investor behavior, consumer choices, and even regulatory responses.

Impact on JPMorgan Chase: Positive media coverage can boost the bank’s brand and attract new
customers, while negative coverage (e.g., related to financial scandals or regulatory fines) can damage its
reputation and cause financial harm. Public relations efforts and how the bank engages with the media
can affect its public image and customer trust.

h) Credit Rating Agencies

Role: Credit rating agencies such as Moody’s, S&P, and Fitch assess the creditworthiness of JPMorgan
Chase. These agencies evaluate the bank’s financial health, risk profile, and ability to meet its obligations.
Impact on JPMorgan Chase: The ratings assigned by these agencies directly affect the bank’s cost of
capital and its attractiveness to investors. A higher rating means lower borrowing costs, while a
downgrade could lead to higher borrowing costs and lower stock prices.

i) Conclusion
Stakeholders are critical to the operations and success of JPMorgan Chase & Co. Each group—whether
shareholders, customers, employees, regulators, or the broader society—exerts influence on the
company’s strategy, operations, and long-term objectives. By understanding and effectively managing
stakeholder interests, JPMorgan Chase can align its business activities to enhance profitability, ensure
compliance, foster innovation, and maintain its competitive position in the financial services industry.
The company’s ability to leverage AI, manage risks, and drive sustainable growth is heavily influenced by
these stakeholder dynamics.

5) Devise comprehensive project plans for a chosen scenario, including a work and
resource allocation breakdown using appropriate tools.(P5)
a) Project Objective
Develop and implement an AI-powered predictive analytics system to enable accurate financial
forecasting, risk analysis, and strategic decision-making for organizations.

b) Phases and Breakdown

 Stage 1: Initialization of the project
Duration: 1 Weeks

Objectives: Set the project goals, attract stakeholders and complete the project plan.

Mission :

Conduct a boot meeting.

Identify stakeholders and assign roles.

Develop the initial project schedule and allocate resources.

Documents about the scope and results of the project.Planning Phase

 Stage 2: Analysis of requirements

Duration: 2 Weeks

Objectives: Collect and identify functional and non -functional requirements for the system.

Mission :

Interview with related parties and end users (for example, financial analysts, data scientists).
Analysis of historical financial data.

Determine the system requirements and data successfully.

Requirements for detailed documents (required documents).

 Stage 3: Develop a predictive model

Duration: 5 Weeks

Objectives: Building and optimizing predictive analysis model with AI/ml techniques.

Mission :

Data processing money:

- Clean historical financial data.

- Remove excess values and handle missing values.

Model development:

- Choose a suitable machine learning model (e.g. regression, time series forecast).

- Model training and optimization.

Model authentication:

- Assess the accuracy of the model and adjust based on performance data.

- Conduct internal evaluation with data scientists and stakeholders.

 Stage 4: System integration

Duration: 2 Weeks

Objectives: Integrating predictable model with the organization's financial system.

Mission :

System architectural design to integrate.

Develop API/connection set for data streams.

Check the integration of the model with existing financial instruments.

Solve problems of compatibility and check.

  Stage 5: User training and documents
Duration: 2 Weeks

Objectives: Ensure end users are capable of using new systems effectively.

Mission :

Developing training materials (for example, instructions for use, instructions).

Schedule and conduct training sessions with financial analysts.

Collect feedback to improve the ability to use the system.

Provide continuous support for users during the conversion process.

 Stage 6: Check, evaluate and close

Duration: 2 Weeks

Objectives: verify the function of the system, evaluate performance and finish the project.

Mission :

Perform unit, system and integration test.

Evaluate performance data (e.g. accuracy, time -saving).

Send the final project report, including data on performance and integration.

Conduct evaluation after the project and draw lessons.

c) Work Breakdown Structure (WBS)

Figure 5. Work Breakdown Structure

d) Estimate the time needed for each task and create a realistic timeline
Level WBS Code Description Assigned To Start Date End Date Notes
Project: AI-
Overall
Powered
Project project goal
1 1 Predictive 01/09/2024 15/12/2024
Manager and
Analytics
execution.
System
Kickoff
Project meeting and
2 1.1 PM 01/09/2024 07/09/2024
Initiation stakeholder
engagement.
Identifying
Requirements
2 1.2 Sr. Analyst 08/09/2024 22/09/2024 system
Analysis
requirements.
Collect
3 1.2.1 Data Collection vũ đang khôi 08/09/2024 15/09/2024 historical
financial data.
Prepare and
Requirement Tran Nguyen finalize
3 1.2.2 16/09/2024 22/09/2024
Documentation john requirement
documents.
2 1.3 Predictive Data 23/09/2024 28/10/2024 Building the
Model Scientist AI predictive
 Development Team model.
Data Team Clean and
3 1.3.1 23/09/2024 29/09/2024
Preprocessing Member 1 prepare data.
Develop and
Model Design Team
3 1.3.2 30/09/2024 20/10/2024 train the
and Training Member 2
model.
Validate
Internal
3 1.3.3 Sr. Analyst 21/10/2024 28/10/2024 model
Review
performance.
Integrate
System model with
2 1.4 IT Team 29/10/2024 10/11/2024
Integration financial
tools.
Develop APIs
API
3 1.4.1 vũ đang khôi 29/10/2024 03/11/2024 for
Development
integration.
Ensure
Compatibility Tran Nguyen
3 1.4.2 04/11/2024 10/11/2024 seamless
Testing john
integration.
Prepare and
Training deliver
2 1.5 User Training 11/11/2024 24/11/2024
Specialist training
sessions.
Training Develop
Tran Nguyen
3 1.5.1 Material 11/11/2024 17/11/2024 guides and
john
Preparation manuals.
Training Training Conduct user
3 1.5.2 18/11/2024 24/11/2024
Sessions Specialist training.
Testing and Validate
2 1.6 Performance QA Team 25/11/2024 08/12/2024 system
Evaluation functionality.
Deliver final
Project
2 1.7 Project Closure 09/12/2024 15/12/2024 reports and
Manager
handover.
e) Timeline (Gantt Chart)

Figure 6. Gantt Chart

 6) Communicate appropriate project recommendations for technical and
nontechnical audiences.(P6)
7) Present arguments for the planning decisions made when developing the project
plans.(P7)
a) Structured Phase-Based Approach
Decision: Divide the project into seven phases: Initiation, Planning, Design, Development, Testing,
Deployment, and Maintenance.

Argument:

 Clarity and Focus: A phased approach ensures that each stage of the project builds on the
previous one, reducing confusion and rework.
 Risk Mitigation: Breaking the project into manageable phases allows risks to be identified and
addressed early (e.g., validating requirements before design).
 Stakeholder Engagement: Each phase has defined deliverables, making it easier to involve
stakeholders at the right times for validation and feedback.

b) Extensive Planning Phase

Decision: Allocate 4 weeks for detailed planning, including requirement gathering, resource allocation,
and risk assessment.

Argument:

 Foundation for Success: Proper planning avoids costly mistakes in later stages, particularly in
defining system requirements and technical constraints.
 Resource Efficiency: A well-defined plan ensures optimal use of team members, tools, and
infrastructure.
 Risk Awareness: Identifying risks early (e.g., data quality issues or stakeholder misalignment)
provides time to devise mitigation strategies.

c) Technology Stack Selection

Decision: Choose technologies like TensorFlow, Flask/Django, and AWS for development and
deployment.

Argument:

 Scalability: TensorFlow and AWS are industry-standard tools for AI/ML applications, supporting
scalability and future enhancements.
 Flexibility: Flask/Django frameworks allow rapid prototyping and integration with machine
learning pipelines.
  Cost-Effectiveness: Cloud-based tools (e.g., AWS) minimize upfront infrastructure costs and
provide flexibility in scaling resources as needed.

d) Emphasis on Stakeholder-Centric Design

Decision: Dedicate significant time in the Planning and Design phases to collect user requirements and
validate designs.

Argument:

 Usability: Understanding stakeholder needs ensures the system delivers actionable insights via
user-friendly dashboards.
 Alignment with Goals: Collaboration with finance teams ensures the system addresses key
business challenges, such as forecasting and risk management.
 Reduced Rework: Early validation of designs reduces the risk of misaligned functionality during
development.

e) Allocation of Sufficient Development Time

Decision: Dedicate 16 weeks for development, prioritizing backend, AI/ML models, and frontend
components.

Argument:

 Complexity of AI Models: Developing and optimizing machine learning models requires iterative
cycles of training, testing, and validation.
 Integration Challenges: Building pipelines to integrate raw financial data with predictive models
and user interfaces is resource-intensive.
 Quality Assurance: Longer development time allows for robust testing during and after
development.

f) Rigorous Testing Phase

Decision: Allocate 6 weeks exclusively for system, model validation, and user acceptance testing (UAT).

Argument:

 System Reliability: Comprehensive testing ensures that the system performs well under various
scenarios (e.g., high data loads, real-world inaccuracies).
 AI Model Validation: Validating models against historical and real-time data ensures predictions
are accurate and actionable.
 User Confidence: UAT helps gain stakeholder trust by ensuring the system meets business needs
before deployment.
 g) Ongoing Maintenance and Monitoring
Decision: Include a dedicated phase for monitoring, retraining models, and handling feedback post-
deployment.

Argument:

 AI Evolution: Predictive models require retraining to maintain accuracy as financial trends and
data evolve.
 System Sustainability: Regular monitoring ensures the system remains reliable and secure,
addressing potential downtimes or cyber threats.
 Continuous Improvement: Gathering user feedback enables iterative enhancements, aligning the
system with evolving business requirements.

h) Resource Allocation Decisions

Decision: Assign roles like data scientists, engineers, and QA specialists with time allocations based on
project complexity.

Argument:

 Expertise Utilization: Specialized roles (e.g., data scientists for AI model training) ensure high-
quality deliverables.
 Efficiency: Allocating resources based on project needs prevents overloading or under-utilizing
team members.
 Collaborative Workflow: Clear role definitions promote accountability and collaboration across
cross-functional teams.

i) Use of Tools for Management and Development

Decision: Employ tools like Jira, MS Project, Tableau, and AWS to streamline processes and enhance
productivity.

Argument:

 Project Tracking: Jira and MS Project provide transparency in task management and progress
tracking.
 Data Visualization: Tableau and Power BI simplify complex financial insights into actionable
visualizations.
 Infrastructure Management: AWS and Docker ensure a robust environment for deploying and
scaling the system.

j) Clear Communication Strategy

Decision: Tailor communication methods for technical and nontechnical audiences throughout the
project lifecycle.
Argument:

 Stakeholder Engagement: Providing concise updates ensures all stakeholders remain informed
and involved.
 Risk Reduction: Early and regular communication mitigates misunderstandings and misaligned
expectations.
 Efficiency: Tailored communication formats (e.g., detailed reports for engineers, summaries for
executives) save time while delivering the necessary information.

8) Discuss accuracy and reliability of the different research methods applied.(P8)

a) Interview
Reliability: High

The number of interviews is 10

Involving experts in the field of AI

CONCLUDE: have high reliability and accuracy

b) Survey
Reliability: lower

The number of surveys is small

The survey participants lack experience in the field

CONCLUDE: have low reliability and accuracy

c) Docs review
Reliability: high

Taken from research papers by experts

Pervious official articles

Statistical reports from large companies

CONCLUDE: have high reliability and accuracy

Main results

The system works fully in function:

Provide accurate forecasting analysis and support for strategic decisions.

Successful integration with the financial system:

Connect data seamlessly and easy to use.

Improve accuracy in financial planning:

Reduce forecasting errors and increase budget management efficiency.

Support user training:

Organize guidelines and provide detailed use documents.

The project brings great potential in improving the ability to forecast and make financial decisions,
helping the organization maintain a competitive advantage in a volatile business environment.

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
[1]Shah, S. (2024) Predictive Analytics in Financial Planning: AI for Better Business Decisions,
LinkedIn. Available at: https://www.linkedin.com/pulse/predictive-analytics-financial-
planning-ai-better-business-shah-34vmf (Accessed: 8 December 2024).‌

[2] 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. Available at:
https://ijisae.org/index.php/IJISAE/article/view/6061 (Accessed: 8 December 2024).

[3] Shelf (2024) How to Use AI for Predictive Analytics and Smarter Decision Making, Shelf.
Available at: https://shelf.io/blog/ai-for-predictive-analytics/ (Accessed: 8 December 2024).

[4] Huang, A. H. and You, H. (2022) Artificial Intelligence in Financial Decision Making, SSRN.
Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4235511 (Accessed: 8
December 2024).

[5] What is predictive analytics? Transforming data into future insights (2023) CIO. Available
at: https://www.cio.com/article/228901/what-is-predictive-analytics-transforming-data-into-
future-insights.html (Accessed: 8 December 2024).