What is forecasting?

This episode of Techsplainers explores forecasting—the method of predicting future outcomes by analyzing patterns in historical and current data. We explain how businesses use forecasting to estimate demand, project sales, and plan for growth, with AI-powered tools now reducing errors by up to 50%. The episode walks through the six-step forecasting process and compares qualitative methods (like the Delphi method and market research) with quantitative approaches (including time series forecasting and causal models). We also examine how AI and machine learning are transforming forecasting accuracy and speed, and explore practical applications across financial planning, production planning, sales, and supply chain management. Whether you're new to business planning or looking to enhance your forecasting capabilities, this episode provides valuable insights into this essential business practice. Find more information at https://www.ibm.com/think/podcasts/techsplainersLearn more about forecasting in https://www.ibm.com/think/topics/forecastingNarrated by Amanda Downie