Budgeting in the Age of Artificial Intelligence – New Approaches, Old Challenges?

Abstract

Organizations in the early 21st century face challenging market dynamics and
constant change driven by disruptive innovations, such as the Internet of Things
(IoT), Internet of Services (IoS), Big-Data-Analytics (BDA), or Artificial Intelligence
(AI). These innovations also affect the way of corporate budgeting, therefore
discourses on budgeting effectiveness gain contemporary importance for
practitioners and researchers. Organizations are dared to ensure solution-oriented
budgeting approaches to solve budgeting obstacles, such as the killing of
managers’ motivation and innovative strength while also ensuring agility and
pinpoint accuracy in attaining corporate objectives (Marotta et al., 2022). In this
context, the given paper describes the opportunities and challenges of AI in the
context of corporate budgeting. The question of interest is stated as follows:
“How and to which extent does AI offer opportunities to improve existing
budgeting approaches?” This paper is a result of literature studies in which other
authors’ perspectives and critical analyses on budgeting approaches have been
used and combined with the latest research on AI in corporate budgeting.