Validate an AI cash forecast for a specific treasury use before relying on it.
Treasury is considering an AI 13-week cash forecast for revolver draw decisions, but the model has only been shown in a vendor demo. Use-specific model validation: intended use -> conceptual fit -> outcome testing -> stress checks -> reliance limit -> monitoring The common trap is to approve the forecast because the average error looks low. Average error can hide the exact weeks where liquidity decisions are most sensitive. Use Define the use: weekly liquidity visibility now; revolver draw reduction only if forecast error stays within $2M in stress weeks. Validation starts with reliance level. A dashboard can tolerate more…
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