Outdated Systems, Outdated Decisions: How AI Transforms Scenario Planning

Today, economic volatility, inflation, and global disruptions are the new normal.

Finance teams are thus being asked to do more — and do it faster.

But for some reason, many organizations still rely on spreadsheets and legacy systems to manage financial planning and analysis (FP&A) processes. These outdated tools may feel familiar, but they quietly undermine the ability to forecast accurately, respond quickly, and make strategic decisions with confidence. Enter scenario planning powered by artificial intelligence (AI), which helps FP&A improve forecasting, better manage risk, and plan faster.

The Hidden Cost of Spreadsheets and Legacy Systems

For FP&A teams, spreadsheets have long been the go-to tool. They’re flexible, accessible, and easy to use. But when it comes to scenario planning in today’s fast-paced environment, they fall short. Manual data entry, version control issues, and siloed information create bottlenecks that slow down decision-making and increase the risk of errors.

According to FSN research, organizations that embrace scenario planning see measurable improvements in forecasting accuracy and agility. For example, 77% of organizations using scenario planning can reforecast earnings within a week — nearly double the rate of those who don’t.

Despite those benefits, however, adoption rates remain low. Why? Because traditional tools make the process too slow and too manual to be effective.

Why Scenario Planning Matters More Than Ever

Scenario planning isn’t just a “nice to have” — it’s a strategic imperative. Via scenario planning, finance teams can model multiple futures, assess risks, and prepare for uncertainty. When the process instead relies on spreadsheets and outdated corporate performance management (CPM) systems, the process becomes a time-consuming, error-prone exercise that invites a host of issues:

1. Finance teams end up spending more time wrangling data than analyzing it.
2. Collaboration across departments becomes difficult.
3. The market may have already shifted by the time a scenario is modeled.

Collectively, these issues show exactly why scenario planning is so important.

AI Built for Finance: Faster, Smarter, More Strategic

AI scenario planning changes the game. By automating data collection, analysis, and modeling, AI enables finance teams to focus on what matters most: strategic decision-making. Here are three ways AI makes that possible:

1. Enhanced Speed and Accuracy

AI can process vast amounts of historical and real-time data, identifying patterns and anomalies that humans — and spreadsheets — often miss. With solutions such as OneStream’s SensibleAI™ Forecast, FP&A teams can generate forecasts across thousands of variables in minutes, not days.

Endeavour Energy offers the perfect example of what’s possible. Facing rapid growth and complex infrastructure demands, the company replaced manual forecasting with OneStream’s SensibleAI™. The result? Forecasting time dropped by 99.7%, from two days to ten minutes, and accuracy improved from 94% to 98%. The best part? No coding expertise or data scientists were needed.

2. Improved Risk Management

One of the most powerful advantages of AI scenario planning is its ability to transform how organizations manage risk. Traditional tools like spreadsheets and legacy CPM systems make it difficult — if not impossible — to model multiple scenarios quickly and accurately. As a result, finance teams often react to disruptions rather than prepare for them.

AI changes that.

By automating the creation and analysis of “what-if” scenarios, AI enables finance teams to assess the potential impacts of wide-ranging internal and external variables. For instance, the impact of inflation and interest rate changes to supply chain disruptions, geopolitical events, and even weather patterns can be assessed. The resulting level of insight allows organizations to develop robust contingency plans and make proactive decisions — before risks materialize.

3. Cross-Functional Collaboration

One of the most overlooked, yet transformative benefits of AI scenario planning is its ability to foster true cross-functional collaboration. In traditional planning environments, finance teams often operate in isolation, relying on fragmented data from spreadsheets and legacy systems. This siloed approach limits visibility, slows decision-making, and makes aligning financial plans with operational realities difficult.

AI built for finance changes that dynamic.

By integrating data from across the organization, from sales to operations to human resources (HR), AI-powered platforms such as OneStream create a unified planning environment. This technology enables finance teams to collaborate in real time with other departments, ensuring scenario models reflect the full complexity of the business.

The Path Forward

AI scenario planning doesn’t replace finance professionals — it elevates them. By automating repetitive tasks and surfacing deeper insights, AI frees up time for high-value analysis and strategic thinking.

This shift from manual systems to modern platforms enables finance leaders to take finance further through key actions:

• Reforecasting earnings within a week
• Modeling multiple scenarios with confidence
• Aligning planning across business units
• Driving better outcomes across key financial metrics

Ready to Leave Outdated Systems Behind?

Now is the time to modernize.

AI-driven scenario planning gives you the tools to lead with foresight, not just hindsight. Ready to see how OneStream can help you streamline planning, improve accuracy, and make smarter decisions faster? Download our eBook, The CFO's Guide to Leading with Foresight: AI-Driven Scenario Planning.