AI as a Decision Companion: Supporting Executive Pricing and FX Decisions in Global Enterprises Through LSTM Forecasting
Global enterprises face increasingly volatile market conditions, with foreign exchange (FX) movements often forcing executives to make rapid pricing and strategy decisions under uncertainty. While artificial intelligence (AI) has transformed operational decision-making, its role in supporting board-level strategic choices remains underexplored. This paper examines how AI and advanced analytics can serve as a ‘decision companion’ for management teams and executives confronted with global shocks. Using Roblox Corporation as a case study, we apply a Long Short-Term Memory (LSTM) neural network to forecast bookings and simulate counterfactual scenarios involving euro depreciation and European price adjustments. The analysis reveals that a ten percent depreciation of the euro reduces consolidated bookings and profits by approximately six percent, and that raising European prices does not offset these losses due to demand elasticity. Regional attribution shows that the majority of the decline is concentrated in Europe, with only minor spillovers elsewhere. The findings demonstrate that AI enhances strategic agility by clarifying risks, quantifying trade-offs, and isolating regional effects, while ensuring that ultimate decisions remain with human executives.
Authors
- Wesley Leeroy
- Gordon C. Leeroy
Institutions
- University of Pennsylvania (US)
- The University of Texas at Austin (US)
- Philadelphia University (US)
Publication Details
- Journal
- Journal of risk and financial management
- Published
- 2025-09-25
- DOI
- https://doi.org/10.3390/jrfm18100542
- Primary Topic
- Forecasting Techniques and Applications
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- University of Pennsylvania
- University of Texas at Austin
- School of Engineering and Applied Science, University of Pennsylvania