GM: CFO Aims for 80% Forecast Accuracy for Analysts with AI

General Motors is urging its executives to intensify the use of artificial intelligence and measures the effort each month. Paul Jacobson outlines a target for finance: to dedicate most of the time to forecasting rather than commenting on the past, while admitting that deployment is still in its early stages. The executive situates these ambitions within a context of increased global competition, particularly against Chinese companies.

GM Finance: Aiming for 80% Forecasting with AI

Paul Jacobson explains that currently, GM's financial analysts spend about 80% of their time analyzing past results and 20% anticipating the future. He wants artificial intelligence to help reverse this distribution so that 80% of the time is dedicated to forecasting. According to him, AI should assist teams in better anticipating and conducting these analyses faster than humans, which would improve the efficiency of the finance function. He warns that companies that fail to gain efficiency risk being outpaced.

Deployment Still "Nascent" with Use Cases in Design and Supply Chain

Paul Jacobson indicates that GM's ambitions regarding artificial intelligence are still at a "nascent" stage, as the company seeks to understand how this technology will transform its operations. However, GM is enhancing the use of AI across several departments. The automaker is already using tools that recommend automotive design choices and flag potential risks for the supply chain. Jacobson also mentions potential applications in vehicle features, quality, and manufacturing. On the product side, Sterling Anderson, the product director, aims to accelerate the transition from design to production.

Executive Leadership: A Monthly Competition Around AI Usage

Paul Jacobson reports that there is a friendly competition among GM's top executives to increase the use of AI. Executives reporting to CEO Mary Barra compare AI usage metrics by function and department each month. Jacobson notes that his team is "in the middle of the pack" in this dynamic. A GM spokesperson confirms the friendly nature of this internal competition.

Chinese Competition and Reallocation of Capabilities to the U.S.

Artificial intelligence has become a central issue for automakers in Detroit, as Chinese companies expand their global presence with cheaper and longer-range electric vehicles. Paul Jacobson describes the United States as a "small haven," with some manufacturers directing more capabilities there to avoid more intense competition in other markets.