Why Most Companies Keep Missing Sales Forecasts—and How AI Can Fix the Mess
*A quick dive into a recent study that shows why forecasts flop and what leaders can do about it.
Key Findings (in a nutshell)
*- 80% of firms missed a sales forecast in at least one quarter in the last two years. In the UK it’s 78%.
- In 2023, roughly 3‑quarters of companies (global 76%, UK 68%) also fell short in Q1, Q2 or Q3.
- Technology is the kryptonite: 32% of respondents say their tools are out‑of‑date. Another 15% complain they’re wasting time on forecasting.
- Despite these blunders, 70% of leaders are raising revenue projections for the next year. Only 14% are cutting them, and 16% keeping the numbers steady.
- Consequence round‑up: 42% froze hiring. 41% paused raises and bonuses. 30% laid people off.
What’s Driving the Blunders?
*- Out‑dated tech & stale forecasting systems.
- Spreadsheets + gut feelings simply aren’t cutting it anymore.
- Public companies are no better: a 2022 study found earnings guidance is wrong ~70% of the time.
What Leaders Are Doing to Fix It
*- 34% plan to revamp their forecasting approach next year. 32% of UK firms already in motion.
- 67% (UK 64%) are actively exploring—or have already bought—advanced tech to squeeze accuracy from their data.
- “AI brings the customer voice and deal health into the forecast loop,” says Amit Bendov, CEO of Gong. “The spreadsheet era is done!”
Real‑World Wins: Upwork’s AI‑Powered Forecasting
*Drew Korab, Sales Ops Director at Upwork, spilled the beans:“When we hit a growth‑and‑change storm, our old forecasting methods just didn’t cut it. We switched to an AI‑powered engine that pulls in fresh data, process tweaks, and a clear insight map. In three quarters we hit 95% accuracy—boom! Stakeholders were suddenly jazzed, not jittery.”The result? A bigger confidence cushion in an uncertain economy.
Bottom Line
*If you’re still juggling spreadsheets and “feelings” to predict revenue, you’re not alone. But half the companies are already turning to AI to bridge the gap between guesswork and reality. And guess what? It’s not just about numbers—accurate forecasts mean fewer layoffs, happier teams, and a smoother ride through whatever market turbulence comes next.
_Hungry for more insider tips? Stay tuned!
