Artificial Intelligence

Financial Analysis in Power BI

Nick Edwards

Capital Markets Analyst

Let the robots take over...

Photo of a wax figure Terminator from the Terminator series.

1 Photo by Daniel Jurena from Prague, Czech Republic
Financial Analysis in Power BI

Let the robots take over... our spreadsheets!

Image of code on a screen.

AI has it's place in financial analytics to automate tasks, reports, and insights

  • FinTech: financial technology
  • Big data: massive amounts of data
1 Photo by markusspiske on Unsplash
Financial Analysis in Power BI

Artificial intelligence (AI)

Artificial intelligence (AI) is computer programmed human intelligence

  • Made up of complex algorithms to mimic human intelligence
  • Can analyze data faster than humans, more consistently

Machine Learning is AI that can improve when feedback is provided

  • Social media likes and views
  • reCaptcha image verifications

Image of a reCaptcha verification asking the user to match crosswalks.

1 https://www.ibm.com/cloud/learn/what-is-artificial-intelligence
Financial Analysis in Power BI

Forecasting

Image of a forecast of gross sales over time. The forecasted area is highlighted gray.

  • Forecasting is the process of predicting or estimating a future outcome
    • Financial planning and budgeting (i.e., find future sales)
  • Power BI uses an exponential smoothing algorithm
    • Historical data informs the predictions
    • Finds trends and reduces the "noise" of deviations
1 https://powerbi.microsoft.com/es-mx/blog/describing-the-forecasting-models-in-power-view/
Financial Analysis in Power BI

Seasonality

  • Seasonality is the correlation between time of year and performance

seasonality

1 https://www.census.gov/retail/index.html
Financial Analysis in Power BI

Let's practice!

Financial Analysis in Power BI

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