A COMPARATIVE ANALYSIS OF FINANCIAL RATIOS BEFORE AND AFTER THE ADOPTION OF ARTIFICIAL INTELLIGENCE (CASE OF DANONE)

• Main Author: Imani Wahono, Dzaky
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85786
• Institution: Institut Teknologi Bandung

This research provides a comparative analysis of key financial ratios at Danone, one of the Consumer-Packaged Goods leaders. The study is based on integrating the HighRadius (AI financial management platform) in 2017 It examines changes in Danone's key financial ratios such as profitability, liquidity, solvency, efficiency, free cash flow, and growth in revenue and expenditure from fiscal year 2011 to 2023. The objective is to explore how AI adoption has influenced the company's financial performance. The analysis indicates that the adoption is led by some improvements in the current ratio and free cash flow, therefore, could prove AI's potential to improve some aspects in financial management. However, its broad effect on other ratios is less pronounced by the integration of AI. Still, it has been more influenced by other factors such as the acquisition project in 2016 and global disruption. This means that although AI can improve particular operational efficiencies, it would require more approaches and strategies to achieve an improvement in financial performance. The research highlights the need for a practical understanding of how AI technologies interact with the changes in financial performance. The findings provide an overview of AI's role in shaping financial outcomes, illustrated through insights into the possible benefits and limitations of AI-driven financial management from Danone's point of view. This insight may benefit decision-makers considering investing in AI technologies to guide expectations regarding what AI will achieve and design implementation strategies that are tailored to the company's needs and objectives.