Page 186 - 2021 White Paper
P. 186
1 White Paper on the Business Environment in China
AI to optimize budgeting and forecasting transparency and objectivity of the AI model helps the
strategic decision making of the senior management
An example is how a Hong Kong based interna- at a time of significantly reduced market visibility,
tional conglomerate with a diversified portfolio of when the demand for staying above the market noise
market leading businesses needs to simplify complex is strong. It is also able to significantly reduce time and
decisions of their real estate business around how re- labor consumption as it produces well-considered
sources should be allocated and how to improve rev- scenarios in budgeting and forecasting based on dif-
enue projections. ferent criterions in a timely manner. It helps to answer
important questions such as land purchase budgets
We created a robust artificial intelligence (AI) and and rent adjustments ahead of the market.
machine learning (ML) model that takes in as much
data points as possible, from macro factors such as Adaptability of the model infrastructure
economic growth projections to micro considerations
such as the positioning of new bus stops. The mod- While investment in technology upgrade can be
el algorithm then crawls through the data to identify done anywhere with the right manpower, its demand
meaningful patterns that help to generate more reli- thrives where traditional industries could benefit from
able forecasts that can ultimately be translated into improvements in efficiency. Just as the process is ini-
increased profitability. tially applied in the real estate sector in Hong Kong,
the model infrastructure is expected to apply to other
Understanding the post-pandemic world sectors not only in the rest of the GBA cities but also
the rest of the world, where innovation can help pro-
The process is particularly useful in a fast-chang- pel productivity gains.
ing world such as during the COVID-19 outbreak. The
How AI helps budgeting and forecasting
Source: EY
186
AI to optimize budgeting and forecasting transparency and objectivity of the AI model helps the
strategic decision making of the senior management
An example is how a Hong Kong based interna- at a time of significantly reduced market visibility,
tional conglomerate with a diversified portfolio of when the demand for staying above the market noise
market leading businesses needs to simplify complex is strong. It is also able to significantly reduce time and
decisions of their real estate business around how re- labor consumption as it produces well-considered
sources should be allocated and how to improve rev- scenarios in budgeting and forecasting based on dif-
enue projections. ferent criterions in a timely manner. It helps to answer
important questions such as land purchase budgets
We created a robust artificial intelligence (AI) and and rent adjustments ahead of the market.
machine learning (ML) model that takes in as much
data points as possible, from macro factors such as Adaptability of the model infrastructure
economic growth projections to micro considerations
such as the positioning of new bus stops. The mod- While investment in technology upgrade can be
el algorithm then crawls through the data to identify done anywhere with the right manpower, its demand
meaningful patterns that help to generate more reli- thrives where traditional industries could benefit from
able forecasts that can ultimately be translated into improvements in efficiency. Just as the process is ini-
increased profitability. tially applied in the real estate sector in Hong Kong,
the model infrastructure is expected to apply to other
Understanding the post-pandemic world sectors not only in the rest of the GBA cities but also
the rest of the world, where innovation can help pro-
The process is particularly useful in a fast-chang- pel productivity gains.
ing world such as during the COVID-19 outbreak. The
How AI helps budgeting and forecasting
Source: EY
186
