Development of AI-Based Financial Planning Tools for Small Businesses

Abstract

Access to expert advice on financial planning is a limitation for small businesses because of little access and the dynamic economy. This research presents the creation of an AI based financial planning tool designed for the micro enterprises. At the proposed methodology, I use a structured machine learning pipeline to improve the decision making and forecasting of financials. Across different financial indicators of small businesses, the dataset is submitted through rigorous data transformation techniques, normalization, and log scaling to handle skewed distributions and ensure feature comparability. It improves efficiency of the model as well as its interpretability by removing unnecessary variables and selecting the relevant ones with filter methods like Pearson correlation. This is implemented as an SVM model in classification tasks such as risk assessment and financial behavior prediction. The tool performs very well in finding and extracting critical financial patterns and creating actionable insights. By giving small businesses an intelligent, affordable planning solution, this research helps them engage in better financial health and sustainability in the face of competitive market environment.