The Promise of Generative AI in Forecast Value Added Analysis

Forecast Value Added (FVA) Analysis, a tool for assessing the effectiveness of demand forecasting processes, has traditionally focused on understanding how each step in a forecast process contributes to or detracts from overall accuracy. With the advent of generative AI and large language models (LLMs), new possibilities for enhancing FVA analysis are emerging. This article examines how generative AI and LLMs can be integrated into FVA to improve forecasting accuracy and process efficiency. Importantly, it considers current limitations and potential future developments which may remedy those ...