Power BI Forecast primarily uses a well-known method called exponential smoothing for time series predictions. Exponential smoothing is quite an effective method for capturing the trends while addressing some of the key challenges around data seasonality, noise in datasets, and any availability of surprise or irregular peaks. Typically, Power BI forecast algorithm uses the Seasonal algorithm (ETS AAA) model to address additive error, additive trend, and additive seasonality. Similarly, the non-seasonal algorithm (ETS AAN) is used to address additive trends and additive error and does not consider seasonality at all.